Herbalife to Name Three New Directors as Icahn Era Ends
28 Fevereiro 2021 - 2:29PM
Dow Jones News
By Cara Lombardo
Herbalife Nutrition Ltd. plans to overhaul its board as Carl
Icahn winds down his eight-year involvement with the company and it
looks to burnish its standing with other investors.
Herbalife will add to its board Sophie L'Hélias, a corporate
governance expert and the lead independent director of French
luxury-goods company Kering SA; Kevin M. Jones, chief executive of
cloud-computing firm Rackspace Technology Inc.; and Don Mulligan,
the former CFO of food conglomerate General Mills Inc., the
nutritional-supplements maker plans to announce Monday.
Following the additions, the board is expected to have nine
members after the company's annual meeting this spring; two current
directors, Margarita Paláu-Hernández and Michael Montelongo, don't
plan to stand for re-election.
Mr. Icahn sold more than half his Herbalife stake back to the
company and gave up five board seats in January, seeing no need for
further activism. He still owns about 6% of the company's shares,
according to FactSet.
Herbalife is looking to move on from a period in which Mr. Icahn
held significant sway over the company -- and backed it during
challenges from regulators and his rival activist investor William
Ackman and the resignation of its CEO. Mr. Icahn became Herbalife's
largest shareholder in 2013, setting up an epic clash with Mr.
Ackman, who had bet against the company's shares and publicly
crusaded against its business model.
The billionaires staged an acrimonious public showdown, with Mr.
Ackman predicting the stock would go to zero and trading jabs with
Mr. Icahn in a shouting match on live television. Mr. Ackman
largely exited his $1 billion bet at a loss in 2018, while Mr.
Icahn has notched an estimated profit of well over $1 billion so
far.
Herbalife, which is incorporated in the Cayman Islands but based
in Los Angeles, has a market value of $5.3 billion. Its shares
dropped along with the broader market in the early days of the
pandemic but have since recovered. Though it reported Feb. 17 that
its annual sales rose 14% to $5.5 billion in 2020, fourth-quarter
revenue and earnings were lower than analysts expected.
The company expects its sales will rise between 6% and 14% in
2021.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
February 28, 2021 12:14 ET (17:14 GMT)
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