Pay vs Performance Disclosure

12 Months Ended

Dec. 31, 2023

USD ($)

$ / shares

Dec. 31, 2022

USD ($)

$ / shares

Dec. 31, 2021

USD ($)

$ / shares

Dec. 31, 2020

USD ($)

$ / shares

Pay vs Performance Disclosure

Pay vs Performance Disclosure, Table

Pay Versus Performance

As required by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, we are providing information about the compensation of our Principal Executive Officers (“PEOs”) and other NEOs, as disclosed in the Summary Compensation Table (“SCT”) and also their “compensation actually paid.” The dollar amounts reported as “compensation actually paid” were computed in accordance with applicable SEC rules and do not necessarily reflect the actual amount of compensation earned by or paid to the NEOs during the applicable year.

				Comp. Actually Paid to Second PEO ($)(2)	Average SCT Total for Non-PEO Named Executive Officers ($)(3)	Average Comp. Actually Paid to Non-PEO Named Executive Officers ($)(2)(3)	Value of Initial Fixed $100 Investment Based On:
Year (1)	SCT Total for First PEO ($)	Comp. Actually Paid to First PEO ($)(2)	SCT Total for Second PEO ($)				Total Shareholder Return ($)(4)	Peer Group Total Shareholder Return ($)(4)	Net Income ($000s)	Adjusted EPS ($)(5)
2023	N/A	N/A	5,838,579	2,731,348	1,750,510	577,117	55.88	153.95	8,595	2.06
2022	N/A	N/A	4,764,466	(116,058)	2,388,206	1,177,614	114.25	133.89	104,778	2.90
2021	2,657,102	1,103,513	4,731,970	3,676,080	1,501,890	953,242	132.76	143.15	147,266	4.14
2020	6,636,559	18,066,470	N/A	N/A	2,553,707	5,745,210	138.78	111.14	191,355	3.63

(1) NEOs included in the above table for each year are the following:

Year	First PEO	Second PEO	Non-PEOs
2023	N/A	Ryan S. Napierski	James D. Thomas, Chayce D. Clark, Steven K. Hatchett, Connie Tang, Mark H. Lawrence, Joseph Y. Chang
2022	N/A	Ryan S. Napierski	Mark H. Lawrence, Connie Tang, Joseph Y. Chang, Chayce D. Clark
2021	Ritch N. Wood	Ryan S. Napierski	Mark H. Lawrence, Connie Tang, Joseph Y. Chang, Chayce D. Clark, D. Matthew Dorny, Jeffrey C. Bettinger
2020	Ritch N. Wood	N/A	Mark H. Lawrence, Ryan S. Napierski, Joseph Y. Chang, D. Matthew Dorny

(2) Adjustments made to calculate 2023 “compensation actually paid” pursuant to SEC rules are as follows:

	PEO	Average of Other NEOs
Total Compensation in SCT	5,838,579	1,750,510
Less: Grant date value of stock awards and option awards reported in SCT	(4,046,074)	(978,982)
Plus: Year-end value of awards granted during the year that are outstanding and unvested as of year-end	1,684,997	318,528
Plus (less): Change in value, from prior year-end to year-end, of awards granted in a prior year that are outstanding and unvested as of year-end	(896,403)	(367,743)
Plus (less): Change in value, from prior year-end to vesting date, of awards granted in a prior year that vested during the year	150,249	(37,240)
Less: Prior year-end value of awards granted in a prior year that failed to vest during the year	—	(107,957)
Total Adjustments	(3,107,231)	(1,173,394)
Compensation Actually Paid	2,731,348	577,117

Fair value amounts were calculated in a manner consistent with the fair value methodology used to account for share-based payments in our financial statements under U.S. GAAP. The fair value amounts were calculated using our stock price on the last day of each fiscal year or the date of vesting, as applicable, and assuming the probable level of achievement for performance-based awards as of the end of the covered fiscal year. For information on the assumptions used in calculating these amounts, refer to Note 9 to our financial statements in the Form 10-K filed for the fiscal year ended December 31, 2023.

(3) Mr. Lawrence served as our CFO through March 31, 2023, at which time Mr. Thomas began serving as our CFO. Removing the impact of Mr. Lawrence’s compensation on the calculations in the table (i.e., if we had a single CFO, Mr. Thomas, throughout the entire year), the average SCT total compensation for 2023 would have been $1,752,209, and the average CAP would have been $760,347.

(4) Calculated in the manner prescribed by SEC rules. Indicates the value, as of December 31 of each year, of an assumed $100 initial investment that is invested on December 31, 2019 in our company’s common stock and the S&P SmallCap 600 Consumer Staples Index (the “SmallCap Index”), the same index that was used in the Stock Performance Graph in our Form 10-K filed for the fiscal year ended December 31, 2023.

We used the S&P MidCap 400 Consumer Staples Index (the “MidCap Index”) in the Pay Versus Performance table of our proxy statement for our 2023 Annual Meeting. We determined to begin using the SmallCap Index this year because we believe the SmallCap Index is better reflective of our current market cap. The value, as of December 31 of each year, of an assumed $100 initial investment in the MidCap Index on December 31, 2019 would be $154.48 for 2023, $133.52 for 2022, $134.56 for 2021, and $122.23 for 2020.

(5) We believe Adjusted EPS is the most important financial performance measure that is used to link the “compensation actually paid” to our NEOs in 2023 to our performance. On average, equity awards constitute the largest component of our NEOs’ 2023 target compensation, and Adjusted EPS is the metric used for our performance-based equity awards. Adjusted EPS is measured as diluted EPS excluding extraneous items such as the impact of accounting changes; losses or gains on settlements of litigation that began prior to the beginning of the respective year; and other items that are non-recurring, unusual, infrequent or outside of management’s control. For further information about the calculation of Adjusted EPS, see “Executive Compensation: Compensation Discussion and Analysis”—“Performance-Based Awards Granted in 2021–2023 – Goals and Vesting.”

Company Selected Measure Name

Adjusted EPS

Named Executive Officers, Footnote

(1) NEOs included in the above table for each year are the following:

Year	First PEO	Second PEO	Non-PEOs
2023	N/A	Ryan S. Napierski	James D. Thomas, Chayce D. Clark, Steven K. Hatchett, Connie Tang, Mark H. Lawrence, Joseph Y. Chang
2022	N/A	Ryan S. Napierski	Mark H. Lawrence, Connie Tang, Joseph Y. Chang, Chayce D. Clark
2021	Ritch N. Wood	Ryan S. Napierski	Mark H. Lawrence, Connie Tang, Joseph Y. Chang, Chayce D. Clark, D. Matthew Dorny, Jeffrey C. Bettinger
2020	Ritch N. Wood	N/A	Mark H. Lawrence, Ryan S. Napierski, Joseph Y. Chang, D. Matthew Dorny

Peer Group Issuers, Footnote

(4) Calculated in the manner prescribed by SEC rules. Indicates the value, as of December 31 of each year, of an assumed $100 initial investment that is invested on December 31, 2019 in our company’s common stock and the S&P SmallCap 600 Consumer Staples Index (the “SmallCap Index”), the same index that was used in the Stock Performance Graph in our Form 10-K filed for the fiscal year ended December 31, 2023.

We used the S&P MidCap 400 Consumer Staples Index (the “MidCap Index”) in the Pay Versus Performance table of our proxy statement for our 2023 Annual Meeting. We determined to begin using the SmallCap Index this year because we believe the SmallCap Index is better reflective of our current market cap. The value, as of December 31 of each year, of an assumed $100 initial investment in the MidCap Index on December 31, 2019 would be $154.48 for 2023, $133.52 for 2022, $134.56 for 2021, and $122.23 for 2020.

PEO Total Compensation Amount

$ 5,838,579

PEO Actually Paid Compensation Amount

$ 2,731,348

Adjustment To PEO Compensation, Footnote

(2) Adjustments made to calculate 2023 “compensation actually paid” pursuant to SEC rules are as follows:

	PEO	Average of Other NEOs
Total Compensation in SCT	5,838,579	1,750,510
Less: Grant date value of stock awards and option awards reported in SCT	(4,046,074)	(978,982)
Plus: Year-end value of awards granted during the year that are outstanding and unvested as of year-end	1,684,997	318,528
Plus (less): Change in value, from prior year-end to year-end, of awards granted in a prior year that are outstanding and unvested as of year-end	(896,403)	(367,743)
Plus (less): Change in value, from prior year-end to vesting date, of awards granted in a prior year that vested during the year	150,249	(37,240)
Less: Prior year-end value of awards granted in a prior year that failed to vest during the year	—	(107,957)
Total Adjustments	(3,107,231)	(1,173,394)
Compensation Actually Paid	2,731,348	577,117

Non-PEO NEO Average Total Compensation Amount

$ 1,750,510

$ 2,388,206

$ 1,501,890

$ 2,553,707

Non-PEO NEO Average Compensation Actually Paid Amount

$ 577,117

1,177,614

953,242

5,745,210

Adjustment to Non-PEO NEO Compensation Footnote

(2) Adjustments made to calculate 2023 “compensation actually paid” pursuant to SEC rules are as follows:

	PEO	Average of Other NEOs
Total Compensation in SCT	5,838,579	1,750,510
Less: Grant date value of stock awards and option awards reported in SCT	(4,046,074)	(978,982)
Plus: Year-end value of awards granted during the year that are outstanding and unvested as of year-end	1,684,997	318,528
Plus (less): Change in value, from prior year-end to year-end, of awards granted in a prior year that are outstanding and unvested as of year-end	(896,403)	(367,743)
Plus (less): Change in value, from prior year-end to vesting date, of awards granted in a prior year that vested during the year	150,249	(37,240)
Less: Prior year-end value of awards granted in a prior year that failed to vest during the year	—	(107,957)
Total Adjustments	(3,107,231)	(1,173,394)
Compensation Actually Paid	2,731,348	577,117

Compensation Actually Paid vs. Total Shareholder Return

Relationship Between “Compensation Actually Paid” and Other Metrics. The following chart depicts the relationship between the “compensation actually paid” to our NEOs and our total shareholder return, and it compares our total shareholder return to that of our peer group.

 

Compensation Actually Paid vs. Net Income

Relationship Between “Compensation Actually Paid” and Other Metrics.

The following chart depicts the relationship between the “compensation actually paid” to our NEOs and our net income.

 

Compensation Actually Paid vs. Company Selected Measure

Relationship Between “Compensation Actually Paid” and Other Metrics.

The following chart depicts the relationship between the “compensation actually paid” to our NEOs and our Adjusted EPS.

 

Total Shareholder Return Vs Peer Group

Relationship Between “Compensation Actually Paid” and Other Metrics. The following chart depicts the relationship between the “compensation actually paid” to our NEOs and our total shareholder return, and it compares our total shareholder return to that of our peer group.

 

Tabular List, Table

Most Important Financial Performance Measures. We believe the most important financial performance measures that are used to link the “compensation actually paid” to our NEOs to our 2023 performance are the following, with Adjusted EPS being the most important of these measures:

Adjusted EPS

Adjusted revenue

Adjusted operating income

Total Shareholder Return Amount

$ 55.88

114.25

132.76

138.78

Peer Group Total Shareholder Return Amount

153.95

133.89

143.15

111.14

Net Income (Loss)

$ 8,595,000

$ 104,778,000

$ 147,266,000

$ 191,355,000

Company Selected Measure Amount | $ / shares

2.06

2.9

4.14

3.63

PEO Name

Ryan S. Napierski

Ryan S. Napierski

Ritch N. Wood

Non-PEO NEO Average Total Compensation Amount Without Employee Attrition

$ 1,752,209

Non-PEO NEO Average Compensation Actually Paid Amount Without Employee Attrition

$ 760,347

S&P MidCap 400 Consumer Staples Index | $ / shares

154.48

133.52

134.56

122.23

Measure:: 1

Pay vs Performance Disclosure

Name

Adjusted EPS

Non-GAAP Measure Description

(5) We believe Adjusted EPS is the most important financial performance measure that is used to link the “compensation actually paid” to our NEOs in 2023 to our performance. On average, equity awards constitute the largest component of our NEOs’ 2023 target compensation, and Adjusted EPS is the metric used for our performance-based equity awards. Adjusted EPS is measured as diluted EPS excluding extraneous items such as the impact of accounting changes; losses or gains on settlements of litigation that began prior to the beginning of the respective year; and other items that are non-recurring, unusual, infrequent or outside of management’s control. For further information about the calculation of Adjusted EPS, see “Executive Compensation: Compensation Discussion and Analysis”—“Performance-Based Awards Granted in 2021–2023 – Goals and Vesting.”

Measure:: 2

Pay vs Performance Disclosure

Name

Adjusted revenue

Measure:: 3

Pay vs Performance Disclosure

Name

Adjusted operating income

Ryan S. Napierski [Member]

Pay vs Performance Disclosure

PEO Total Compensation Amount

$ 5,838,579

$ 4,764,466

$ 4,731,970

PEO Actually Paid Compensation Amount

2,731,348

$ (116,058)

$ 3,676,080

PEO Name

Ryan S. Napierski

Ritch N. Wood [Member]

Pay vs Performance Disclosure

PEO Total Compensation Amount

$ 2,657,102

$ 6,636,559

PEO Actually Paid Compensation Amount

$ 1,103,513

$ 18,066,470

PEO Name

Ritch N. Wood

PEO

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(3,107,231)

PEO | Grant Date Value of Stock Awards and Option Awards Reported in SCT [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(4,046,074)

PEO | Year-End Value of Awards Granted During the Year that are Outstanding and Unvested as of Year-End [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

1,684,997

PEO | Change in Value, from Prior Year-End to Year-End, of Awards Granted in a Prior Year that are Outstanding and Unvested as of Year-End [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(896,403)

PEO | Change in Value, from Prior Year-End to Vesting Date, of Awards Granted in a Prior Year that Vested During the Year [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

150,249

PEO | Prior Year-End Value of Awards Granted in a Prior Year that Failed to Vest During the Year [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

0

Non-PEO NEO

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(1,173,394)

Non-PEO NEO | Grant Date Value of Stock Awards and Option Awards Reported in SCT [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(978,982)

Non-PEO NEO | Year-End Value of Awards Granted During the Year that are Outstanding and Unvested as of Year-End [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

318,528

Non-PEO NEO | Change in Value, from Prior Year-End to Year-End, of Awards Granted in a Prior Year that are Outstanding and Unvested as of Year-End [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(367,743)

Non-PEO NEO | Change in Value, from Prior Year-End to Vesting Date, of Awards Granted in a Prior Year that Vested During the Year [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

(37,240)

Non-PEO NEO | Prior Year-End Value of Awards Granted in a Prior Year that Failed to Vest During the Year [Member]

Pay vs Performance Disclosure

Adjustment to Compensation, Amount

$ (107,957)