Herbalife (HLF) Shelled Out ~$700,000 Last Year to Protect CEO Johnson

Herbalife (NYSE: HLF) was said to spend around $700,000 last year to protect CEO Michael Johnson following threats made to his well being, according to Bloomberg, citing a regulatory filing made Monday night.

The sum of $694,000 included home services. The company also spent $33,000 on other top execs.

With the filing, Herbalife said, In 2013, we received information that led us to conclude that there were threats to our company and certain of our executives, and specifically Mr. Johnson. Based on that information and ongoing dialogue with third-party advisors, security systems were installed and/or monitoring services were provided at the personal residences of some of our executives, including several of the NEOs. These services continued to be provided in 2015. Mr. Johnson receives a higher level of security which we deem to be appropriate based on the nature and extent of the security threat.

Because these services are not designed to provide a personal benefit (other than the intended security), we do not view these security arrangements as compensation to the individuals. However, we are reporting these security arrangements as perquisites as required under applicable SEC rules. We regularly review the nature of the threat and associated vulnerabilities with security specialists and will continue to revise our security program as appropriate.

Timing indicates that Bill Ackman's campaign against the company might be hitting some nerves. The head of Pershing Square placed a short bet on the company in late 2012, calling Herbalife a fraud.

Shares of Herbalife are flat in early trading.

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