Hain Celestial is to restate financial statements for its last two fiscal years following a review into the company’s share option practices.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The US-based natural and organic group said the move would “correct errors related to accounting for stock-based compensation expense”.
Last June, US share watchdog the Securities and Exchange Commission launched a probe into Hain Celestial’s share practices. The company then began its own independent review into the matter.
Hain Celestial said the review had shown that some US$16.9m in charges related to stock-based compensation between 1994 and 2005 should be recognized in the company’s accounts.
The company said that, although the review had found “inadequate or incomplete” reporting of the grants of share options, no current company executives “engaged in any knowing or intentional misconduct with regard to the Company’s option granting process”.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHain Celestial added that it would make a number of corporate governance changes based on the review’s findings. The changes include appointing an independent director to chair the company’s compensation committee.
