Herbalife Nutrition Ltd. CEO Richard Goudis resigned on Jan. 8 after the company discovered comments he made that go against its expense-related policies and business practices.
According to a company release, Goudis' comments, which were made prior to his role as CEO but recently came to light, "were inconsistent with Herbalife Nutrition's standards and do not reflect the company's culture." The company did not disclose the comments.
Herbalife said Executive Chairman Michael Johnson will reassume the role of CEO on a temporary basis. Johnson held the role from 2003 to 2017.
The board expects to name a CEO from the company's senior leadership team.
Under a separation agreement between Herbalife and Goudis, the departing CEO will receive $3.5 million from the company, but he is not allowed to compete against Herbalife through Dec. 31. He is also prohibited from disparaging or making negative comments about the company.
In addition, Goudis agreed to cooperate with any internal or external investigations.
In the announcement, the global nutrition company affirmed its full-year 2019 guidance and added that its preliminary fourth-quarter 2018 volume point results were up 11.6% year over year.