Herbalife has named a new CEO, signaling a fresh chapter for the Los Angeles-based nutrition company as it works to move past a series of controversies in recent years. Stephan Gratziani, a longtime member of Herbalife, will officially assume the role of CEO on May 1. Gratziani, who started as an independent distributor nearly 34 years ago, has served as the company’s president since January 2024 and as chief strategy officer for the five months prior.

The current CEO, Michael O. Johnson, will step into the role of executive chairman after leading the company since 2022. Johnson previously served as Herbalife’s CEO from 2003 to 2017, a period marked by regulatory scrutiny and legal battles over the company’s business practices.

Gratziani expressed optimism about the company’s future, saying, “We’re making progress in delivering on what we promised. But we won’t stop here. There are bigger questions ahead about the future and relevance of our business model.”

Herbalife, which was founded in 1980, has faced significant challenges over the years. In 2016, the Federal Trade Commission (FTC) filed a lawsuit accusing the company of misleading consumers with promises of quick wealth through the sale of Herbalife products, including nutritional supplements, diet shakes, and personal care items. As part of a settlement, Herbalife paid $200 million and restructured its business model, although it did not admit to any wrongdoing.

The company faced another legal setback in 2020 when it admitted to bribing Chinese officials. Herbalife agreed to pay over $123 million in penalties in connection with that case.

Despite these setbacks, Herbalife has continued to grow, now with over 2 million distributors operating in more than 90 countries. The company’s product lineup includes meal replacement shakes, protein bars, vitamins, and skin care solutions.

For the fourth quarter of 2024, Herbalife reported a slight decline in revenue, down 1.4% to just under $5 billion. However, the company posted an increase in profit, with earnings rising to $254.3 million, or $2.53 per share, up from $142.2 million, or $1.44 per share, in the previous year.

Herbalife’s Chief Financial Officer, John DeSimone, emphasized the company’s commitment to changing perceptions of its business, stating, “This year, we’ll focus on helping investors understand the strength of our business and how it differs from past misunderstandings.”

Following the announcement, Herbalife’s stock rose by approximately 18% in after-hours trading, although it has declined by nearly 16% year-to-date, closing at $5.62 per share on Wednesday.

As the company moves forward, Gratziani’s leadership will play a pivotal role in reshaping Herbalife’s image and ensuring its long-term success.