March 04--The top executive of Herbalife Ltd. received a slight raise in salary during fiscal 2012 while his total compensation dropped 58 percent, according to a regulatory filing Friday.
Herbalife announced in December plans to build a $130 million manufacturing plant in Winston-Salem and hire 493 employees over three years. The company already has paid $22 million for the 750,000-square foot former Dell Inc. plant.
Since then, local government and economic officials have said they are paying attention to, but staying at arm's length from, the stock spectacle involving high-profile hedge-fund managers while providing the company with project assistance.
Michael Johnson received a raise of $5,769 in 2012 to $1.23 million. The other top five Herbalife executives also received slight raises.
The decrease in his total compensation resulted from lower restricted stock options. His restricted stock options in fiscal 2012 were slightly less than $5 million, compared with $19.5 million in fiscal 2011. The options were valued on the date that the award was granted.
Johnson's nonequity incentive-plan compensation rose by $18,000 to $3.71 million. He received $357,849 in all other compensation, which included $216,245 for personal use of a chartered aircraft paid by Herbalife, $45,000 for certain out-of-pocket expenses, $43,260 for a match to the company's deferred compensation plan, and $40,972 in combined financial planning services, executive long-term disability plan, executive life insurance plan, executive health benefits program and a 401(k) plan.
On Feb. 20, the Los Angeles company reported an 11 percent increase in net income to $117.9 million compared with the fourth quarter of 2011. Its profit was up 15 percent to a record $477.2 million for fiscal 2012.
Bill Ackman, a hedge-fund manager, has accused Herbalife of operating as a pyramid scheme. The company has called those accusations "bogus" and "blatant market manipulation."
Desmond Walsh, Herbalife's president, and Richard Goudis, chief operating officer, each received a $5,769 salary increase to $655,769 and nonequity incentive-plan compensation of $1.05 million.
Brett Chapman, chief legal officer and corporate secretary, received a $5,769 salary increase to $621,269 and nonequity incentive-plan compensation of $615,285. John DeSimone, chief financial officer, received a $26,603 salary increase to $551,603 and nonequity incentive-plan compensation of $650,520.