Hedge fund manager Ackman promised ex-Herbalife exec as much as $3.6 mln -report
WASHINGTON, April 22
WASHINGTON, April 22 (Reuters) - Hedge fund manager William Ackman secretly promised a former Herbalife executive-turned-whistleblower as much as $3.6 million in case he lost the job he took after leaving Herbalife, ABC News reported on Tuesday on its website.
Ackman, the manager of Pershing Square Capital Management who has heavily shorted Herbalife's stock in the hopes that share prices would fall, told ABC News that he had already paid Giovanni Bohorquez, the former executive, $80,000 because "it was the right thing to do."
Bohorquez worked at Herbalife, a multi-level marketing company, but left in 2011 and began work at a chain of laundromats. He lost that job because of the stress of being a whistleblower, ABC said.
The network said that Ackman gave ABC a copy of an agreement with Bohorquez under which he agreed to pay the former Herbalife executive up to $250,000 a year for 10 years in case he lost his job with the laundromat company because of being a whistleblower. (Reporting by Mark Hosenball and Diane Bartz, editing by Ros Krasny)