Hain Celestial Group is a maker of natural and organic foods and beverages. In the most recent fiscal year Hain did $2.7 billion in sales. Hain is certainly a large and successful company, but that does not mean you do not make mistakes. In a recent disclosure, Hain reported that due to an accounting error they would have to delay their financial report. They were vague on how large the error was, but they reassured shareholders that it would not affect the total amount of revenue this year. Hain did disclose that the company had added to revenue products that were shipped out but not yet sold to customers. In essence jumping the gun on revenue that Hain assumes they will make once all of the shipped items are sold. This further pushed already wavering shareholder relations.
The shareholders have been in opposition to the amount of monetary compensation many of the executives of the company take home each year. The head of the ship Irwin D. Simon cleared $18.1 million in yearly compensation. Hain tried to correct the issue by changing some policies to, according to the Hain spokeswoman, “align pay with performance.” After the changes one third of the shareholders are still voting to withhold support. Gretchen Morgenson from The New York Times describes this amount of “dissent rare in the boardroom.” Hain has not released when the full financial statements will be ready but is trying to put together somewhat or a report for their annual shareholders meeting this fall.
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The Pathways Team