Herbalife names new CEO, Michael Johnson becomes Executive Chairman

LOS ANGELES - Herbalife Ltd. (NYSE: NYSE:HLF), a global nutrition company currently valued at $571 million, has announced a change in its leadership structure, with Stephan Gratziani set to take over as Chief Executive Officer starting May 1, 2025. The current CEO and Chairman of the Board, Michael Johnson, will be transitioning to the role of Executive Chairman on the same date. According to InvestingPro analysis, the company appears undervalued despite maintaining a ’GOOD’ financial health score.

Gratziani, who has been with Herbalife since August 2023 as Chief Strategy Officer and then President since January 2024, has a history with the company as a former independent distributor. He is credited with growing his international distributorship into one of Herbalife’s top global networks over a 32-year period. His tenure has been marked by adapting to shifts in technology, business models, consumer trends, and competitive landscapes. With the company trading at a P/E ratio of 6.58 and generating annual revenue of $5 billion, InvestingPro subscribers can access detailed analysis and 8 additional ProTips about Herbalife’s growth potential.

The outgoing CEO, Michael Johnson, praised Gratziani’s immediate impact upon joining the company and expressed confidence in his leadership to maintain Herbalife’s position in direct selling and the health and wellness industry.

Herbalife also announced that Rob Levy, the current Managing Director of International Markets, will take on the role of President, Worldwide Markets, effective May 1, 2025. Levy, who has been with the company for 30 years, will oversee business, strategy, sales, and marketing functions across Herbalife’s international markets.

Herbalife, known for its nutrition products and direct-selling business model, operates in more than 90 markets globally, offering products and a business opportunity to its independent distributors since 1980.

The company’s forward-looking statements, included in the press release, outline various factors that could impact future performance, such as global economic conditions, member retention, regulatory challenges, and the competitive nature of the industry.

This leadership transition is part of Herbalife’s ongoing strategy to integrate its distributor network with health and wellness technology and modernize the business. The company maintains a healthy gross profit margin of 45% and has shown resilience with positive earnings forecasts for the upcoming year. The information provided is based on a press release statement from Herbalife Ltd. and financial data from InvestingPro’s comprehensive research reports, which provide deep-dive analysis of 1,400+ US equities.

In other recent news, Herbalife Ltd. has secured a new employment agreement with CEO Michael O. Johnson, extending his tenure through December 31, 2025. The agreement, effective February 6, 2025, includes an annual base salary of $1.28 million, along with potential bonuses that could reach up to 300% of his base salary. Johnson is also set to receive an equity incentive award valued at $8 million, similar to those granted to the company’s Executive Vice Presidents under the 2023 Stock Incentive Plan. These equity awards will vest in two installments, with specific conditions tied to performance goals for fiscal years 2025 and 2026. Additionally, the agreement allows for personal use of private aircraft, with costs covered up to $500,000. Various scenarios, such as voluntary resignation or a change in control, could impact the acceleration or forfeiture of these equity awards. These developments underscore Herbalife’s focus on maintaining leadership continuity.

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