Herbalife CEO Resigns Unexpectedly on Wednesday

He reportedly made statements that were "inconsistent" with company standards

Herbalife CEO (NYSE:HLF) Richard Goudis announced his resignation from the company on Wednesday, with the company claiming that the move came about after some statements he made before taking over as boss came to light recently.

Herbalife CEO
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The nutrition and supplement’s former company boss became CEO in June 2017 after serving as its chief operating officer. Herbalife said that Goudis leaving was not due to any issues regarding the company’s financial reporting, but pertains to comments which recently came to light.”

The company added that these are statements he made before taking over as CEO which are “contrary to the company’s expense-related policies and business practices.” Herbalife added that the comments were not consistent with the company’s standards and were not a reflection on the company’s culture.

The supplements maker did not offer any additional information regarding the comments. Executive chairman and former CEO Michael O. Johnson will take over immediately as boss on an interim boss, with the Herbalife board expected to name a permanent replacement from the company’s currently leadership team.

Goudis had worked with the nutrition giant since 2004, serving in a variety of roles including chief financial officer until 2010, followed by his stint as chief operating officer which ran from 2010 to 2017. Herbalife will pay him $3.5 million as part of his exit package upon the condition that he make no negative comments on the company or file a lawsuit against it.

HLF stock fell 0.5% Wednesday.

Article printed from InvestorPlace Media, https://investorplace.com/2019/01/herbalife-ceo/.

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