Herbalife's Johnson back as interim CEO after Goudis resigns
Herbalife Nutrition Ltd. said late Tuesday that Executive Chairman Michael O. Johnson will replace Richard Goudis as the company's chief executive officer, effective immediately. Goudis' resignation "is not due to any issues regarding the company's financial reporting," Herbalife said, but is related to comments, which recently came to light, made by Goudis before serving as CEO "that are contrary to the company's expense-related policies and business practices. The comments made were inconsistent with Herbalife Nutrition's standards and do not reflect the company's culture," Herbalife said, without elaborating further. Goudis, then the company's chief operating officer, took over from Johnson in 2017. Johnson, who served as CEO from 2003 to 2017, including the period in which the company faced intense criticism from hedge-fund manager Bill Ackman, will be an interim CEO, Herbalife said. To ensure "an effective and orderly transition to a permanent CEO," Herbalife's board expects to select the permanent CEO from the company's "proven" senior executive team, the company said. The company reiterated its initial full-year 2019 guidance as announced on Oct. 30, "thereby demonstrating the company's consistent and continued confidence in the business moving forward," Herbalife said. At that time, Herbalife said it expected adjusted per-share earnings between $2.70 and $3.10 for the 12 months ending December 2019, and currency-adjusted net sales growth between 5% and 9% versus 2018. Shares of Herbalife were flat in the extended session after ending the regular trading day down 0.7%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.