Altria Nixes CEO’s Annual Incentive Bonus Over Juul Labs Investment
Altria invested $12.8 billion in the company in 2018 for a 35% stake
Altria Group’s CEO will not receive a key bonus related to his work. The company revealed in a regulatory filing that it has deemed Howard Willard undeserving of his annual incentive plan award for 2019.
This is entirely due to the company’s investment in e-cigarette maker Juul Labs. Under Willard’s stewardship, Altria invested $12.8 billion in the company in 2018 for a 35% stake. But Juul Labs has reeled from a backlash against products like flavored vapes to the point where some have questioned its ability to survive, and Altria has taken significant write-offs on its investment.
“The Compensation Committee considered the significant impact that Altria’s 2018 minority investment in JUUL Labs, Inc. has had on shareholder value,” Altria wrote in the filing. “As a result, the Compensation Committee concluded that Mr. Willard should not receive an award under the Annual Incentive Plan for 2019.”
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