After taking the post of Head of Compliance team for Herbalife Ltd. (NYSE:HLF), former FTC Chief was quite comfortable after a brief look at the company’s operations. Pamela Jones Harbour took the post with the troubled company, which is facing accusations of running a pyramid scheme.
The appointment of the former FTC chief helped the company’s shares rise up to 7%, although the company has lost 43% of its share value this year. Harbour was the FTC commissioner during 2003 to 2010 period along with additional experience of working as a prosecutor in New York State Attorney General’s office for 12 years. At Herbalife Ltd. (NYSE:HLF), Harbour would be responsible for looking through the policies for its 4 million distributors in 91 different markets.
Harbour said, “There have been times in my career where I’ve stuck my neck out, but I only will do that if I’m really confident of my own convictions and willing to live with the consequences. This is one such instance.” She further confirmed that she has been a Herbalife customer since 2004 and purchased formula 1 weight-loss shake powder at a family reunion.
Herbalife Ltd. (NYSE:HLF) is facing some serious troubles from Pershing Square Capital’s head, Bill Ackman, and according to him, the company makes profits by recruiting distributors instead of selling the real products. Harbour added that she was convinced after visiting the company’s nutrition club, automated distribution centers, and testing lab with her executives. She further added that Herbalife’s executives are committed towards compliance and she appreciated their sincere efforts in the matter. She said, “Compliance should be a part of a company’s culture, and I got that very strong sense when I was at Herbalife.”
When asked about the challenges she is likely to face in the company, Harbour said, “It is probably quite a challenge to have everyone rowing in the same direction even though that is the company’s mission and aspiration. One can always take a look at practices, and there can always be enhancements made.”
This article has been written by Prakash Pandey and edited by Serkan Unal.