Wednesday, 29 June 2016
Last updated 4 hours ago
Apr 29 2013 | 12:02pm ET
Herbalife's shareholders have elected two representatives of the nutritional-supplements company's biggest cheerleader to its board.
The vote makes a deal between Herbalife and Carl Icahn in February official: In exchange for agreeing to limit his stake in the company to 25%, Herbalife agreed to expand its board by two members to add Jonathan Christodoro and Keith Cozza. Icahn Enterprises and its related entities own about 13.6% of Herbalife.
Icahn built up his stake in Herbalife after Pershing Square Capital Management founder William Ackman—a longtime Icahn antagonist—called the company a pyramid scheme and announced a $1 billion short position. Icahn and Ackman have feuded for a decade, and the former boosted his stake in Herbalife following a joint interview with Ackman on CNBC in January, in which Icahn made clear his antipathy for Ackman.
Herbalife shareholders also approved its executive compensation program, and amended its charter to allow annual election of directors. Herbalife has still not hired a new auditor following the resignation of KPMG in the wake of an insider-trading scandal. Herbalife has not been accused of any wrongdoing in the case.