Nutritional supplements company Herbalife has agreed to add three more representatives of Carl Icahn to his board, giving an investor owning 16.8% of the company a nearly 40% share of its directors.
Herbalife said that three of its current directors would step down at the April 29 annual meeting—which was delayed five days as the company negotiated with Icahn. In their place, two Icahn employees and an independent director of Icahn Enterprises will take their place, joining two other Icahn representatives who’ve sat on the 13-member board for about a year.
“We remain resolute in our commitment to the long-term success of Herbalife,” Icahn said today.
Herbalife said that Icahn retains the right to increase his stake in the company to 25%.
Icahn began investing in Herbalife after his nemesis, Pershing Square Capital Management’s William Ackman, opened a $1 billion short bet against the company, calling it a pyramid scheme. The company’s shares have soared since Icahn announced his initial stake, although word of a regulatory investigation earlier this month sent the shares down.