That's the happy situation for Medifast CEO Michael MacDonald, but some law firms are crying foul. While the top dog is feasting on filet mignon, the company could be in the dog house with investors.
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| Medifast CEO Michael MacDonald |
Law firm Kirby McInerney LLP is actively inviting shareholders of MED stock to help it "investigate potential claims against the Board of Directors of Medifast, Inc. (“Medifast” or the “Company”) (NYSE:MED) concerning the improper compensation of the Company’s executives."
And chief among these lucky ducks is MacDonald, the brother of former Medifast CEO Bradley MacDonald, whose total compensation jumped from $1,160,702 in 2012 to $7,070,686 in 2013.
Naturally you would expect the Owings Mills, Md. weight loss company had a stellar year with a rising stock price, rocketing revenues and ingenious initiatives that compelled such a stunning reward.
And you would be wrong.
Medifast is currently showing lackluster growth and even declines in some areas. Its stock price wavers from Strong Sell to Hold as investors lose confidence the stock will fatten their own bottom lines.
Meanwhile, MacDonald is laughing all the way to the bank.
Tomorrow in Part Two of this story, I will discuss how Medifast could better invest its limited resources instead of paying off the mortgage on the CEO's mansion.
You can purchase Medifast replacement meals directly from Medifast Centers, the Medifast website or -- for no extra cost -- through the co-branded website of a Medifast TSFL health coach. Medifast does not recommend purchasing its products from third party vendors, but if you choose to do so, you can find them on both Amazon and eBay.
Medifast Custom Order - You Choose ANY 10 Boxes
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