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  • March 26, 2009 10:28 AM EDT by Brian Sullivan

    Herbalife Lucky It Isn't A Bank

    The marketing and health firm just paid out $36.4 million in bonuses to its distributors at a lavish event in Los Angeles.   Six of the top performers made more than $1 million in bonus, and the firm spent more than $3 million in hotel and entertainment costs in Beverly Hills.   This even though the stock is at a 4 year low.

    Should America be upset about this?  Of course not.   Good for them!  The people do a tough job, take on risk and face much rejection.   They should get paid if they make money for the company, even as the overall company does poorly.   That, as they say, is capitalism.

    All I'm saying is that its lucky for those employees the company isn't a bank.   As are the employees at the Beverly Hilton who finally saw some work and (hopefully) made some money in tips and overtime for a nice corporate event.

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Lynda Simonetti

Meetings at The Beverly Hilton mean big business. On the Contrary to your reference "the hotel employees finally see some work," The Beverly Hilton team members are pacing back-to-back conferences in the round-the-click workplace with numerous notable world-renowned events such as Herbalife and the forthcoming Milken Institute (not to mention winding down from the red carpet awards season).

March 30, 2009 at 12:46 pm

Maria N

Santa Fean, what are you referring to as UNSAFE products? As your comment is in response to a Herbalife related article, just in case someone will think that of herbalife products: Herbalife operates in 70 countries - meaning that the products are legally allowed to consumers in those countries by HEAVY testing and HEALTH REGULATIONS. And the product is indeed valueable as the number of people dying from obesity is alarming. Oh, and yes, the bonus recievers are NOT EMPLOYEES - they are INDEPENDENT distributors - not working per hour; but paid on their productivity.

March 28, 2009 at 10:35 am

George Fischer

Brian, to clarify a few points - The bonuses were paid to independent distributors, not Herbalife employees. These are the people who have been able to build their own business through this opportunity. Overall, the direct selling industry presents an opportunity to many people to earn part-time income or build a full-time business. The $3 million was generated for the city from people coming into town. Thanks, George Fischer (Herbalife)

March 26, 2009 at 3:27 pm

Santa Fean

You don't get it. Why would executives at AIG get bonuses for FAILING? THAT is what is upsetting and just plain wrong. Paying someone for FAILURE is capitalism (the best system on earth) at it's worst and why we need regulation. Without regulation you would be subject to criminal capitalists. Do you need examples? How about selling you unsafe products? How about unsafe workplaces? Bonuses are fine IF you earn it by selling a safe, productive and valuable product. OK?

March 26, 2009 at 3:09 pm
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about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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