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  "docSlug": "886ebab3088d",
  "documentTitle": "Herbalife, Ltd. (HLF)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "This is a classic 'villain critique' slide in an activist deck, framing the business model as inherently predatory.",
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      "text": "Distributors cannot get to the higher-income, upper levels of the Herbalife chain without recruiting",
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      "text": "Wholesale Commissions are only available to distributors who have recruited Non-Sales Leaders",
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      "text": "Distributors cannot get to the higher-income, upper levels of the Herbalife chain without recruiting. To get to Active World Team, GET Team, Millionaire Team, President's Team, or Chairman's Club, a distributor must accumulate Royalty Override Points, which requires having (recruiting) downline Sales Leaders.",
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      "text": "Herbalife's most lucrative rewards (Royalty Overrides, Production Bonuses, and the Mark Hughes Bonus) are only available to distributors who have reached the rank of Sales Leader and have recruited Sales Leaders beneath them. As Sales Leaders recruit, and as they incentivize their recruits to recruit, they become eligible to receive additional recruiting rewards, and their commissions grow geometrically. Production Bonuses go 'infinitely deep' into the distributor's downline.",
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      "kind": "title",
      "text": "Herbalife's Compensation Plan Incentivizes Distributors to Recruit Aggressively",
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