Herbalife Extends CEO Michael O. Johnson’s Tenure with New Agreement

Herbalife Ltd. (NYSE: HLF) has finalized a new employment agreement with Michael O. Johnson, securing his role as Chief Executive Officer through December 31, 2025. Effective February 6, 2025, the contract outlines a $1.28 million annual base salary, along with potential annual bonuses and significant equity incentives. The announcement comes as Herbalife, currently valued at $516 million, trades near its 52-week low of $5.13.

Key Compensation Terms

Under the agreement, Johnson’s annual bonus has been set at a target of $1.92 million, with the potential to reach up to 300% of his base salary. In addition, he will receive an equity incentive award valued at $8 million, aligning with the incentives granted to Executive Vice Presidents under Herbalife’s Amended and Restated 2023 Stock Incentive Plan.

The company’s next earnings report, scheduled for February 19, is expected to provide further insights into its financial position.

Equity Vesting and Performance Conditions

The equity awards will vest in two installments:

• 50% on the first anniversary of the grant date
• The remaining 50% on January 1, 2027, or when a new non-interim CEO assumes the role in 2026, contingent on continued service

Performance-based stock units (PSUs) will vest based on cumulative performance goals set for fiscal years 2025 and 2026.

Additional Benefits and Contractual Terms

The agreement also includes personal use of private aircraft, with Herbalife covering costs up to $500,000, based on incremental expenses. The contract specifies conditions that could accelerate or forfeit equity awards, including voluntary resignation, termination without cause, or a change in control within the company.

With this leadership extension in place, Herbalife aims to maintain stability and strategic continuity, positioning itself for future financial growth and operational success.

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