Herbalife shareholders approve board, executive compensation, and auditor

Published 25/04/2025, 22:54
Herbalife shareholders approve board, executive compensation, and auditor

Herbalife Ltd. (NYSE:HLF), currently trading at $6.67 and identified as undervalued by InvestingPro analysis, announced the results of its annual general meeting held on April 23, 2025, where shareholders voted on several key proposals, according to the company’s recent SEC filing. The $672 million market cap company maintains a robust gross profit margin of 45%.

The election of directors was the first item on the agenda, with all eleven board nominees securing their positions by a majority vote. The directors will serve until the next annual general meeting in 2026. The detailed voting results indicated strong shareholder support, with Michael O. Johnson receiving over 67 million votes in favor. This leadership stability comes as the company maintains profitability with a return on assets of 9.2%. InvestingPro data reveals 8 additional key insights about Herbalife’s performance and outlook.

The second proposal, an advisory vote on the compensation of the company’s named executive officers, also passed. Although the vote was advisory and non-binding, it showed a relatively close count with 35 million votes for and 33 million against.

The third and final proposal, concerning the ratification of PricewaterhouseCoopers LLP as Herbalife’s independent registered public accounting firm for the fiscal year 2025, was approved by an overwhelming majority. Over 80 million votes supported the appointment, with only about 2.4 million against.

Herbalife’s annual general meeting reflects the shareholders’ confidence in the board’s governance and the company’s executive compensation plan. The appointment of PricewaterhouseCoopers LLP also indicates trust in the firm’s ability to provide independent and reliable auditing services for the upcoming fiscal year.

The meeting’s outcomes are based on the SEC filing and no further details on the discussions or future plans of the company were disclosed in the document. Investors should note that Herbalife’s next earnings report is scheduled for April 30, 2025, with analysts forecasting adjusted earnings of $1.79 per share for fiscal year 2025. For comprehensive analysis and detailed financial metrics, access the full Pro Research Report available on InvestingPro.

In other recent news, Herbalife has made significant strides with several developments. The company announced the appointment of Lynda Cloud to its Board of Directors, aiming to enhance its digital transformation and wellness offerings. Cloud, with her extensive experience in digital learning, is expected to contribute to Herbalife’s strategic priorities. In financial updates, DA Davidson has upgraded Herbalife’s stock from Neutral to Buy, doubling the price target to $14.00, influenced by positive sales growth and strategic initiatives by the new CEO. The firm noted a 3% increase in constant currency sales in the fourth quarter of 2024 and expects a 4% increase in organic sales by 2025. Despite some challenges in digital engagement, particularly in the U.S. and Mexico, Citi maintains a Buy rating with a $13 target, indicating potential for recovery. Herbalife’s deleveraged balance sheet and positive free cash flow further support these optimistic assessments. The company’s inclusion in DA Davidson’s STAMPEDE list highlights confidence in its strategic direction and management changes. Investors are closely monitoring these developments as Herbalife seeks to strengthen its position in the wellness market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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