Howard Willard, CEO of Altria, will not receive an annual incentive award as a result of the company’s declining investment in Juul Labs.
“The compensation committee considered the significant impact that Altria’s 2018 minority investment in Juul Labs Inc. has had on shareholder value. As a result … Willard should not receive an award under the Annual Incentive Plan for 2019,” the company stated.
Willard’s base salary in 2020 will not increase from $1.25 million, according to Altria. His 2018 annual incentive was $2.25 million.
Altria’s stake in Juul Labs was valued at $4.2 billion at the end of 2019, down from $12.8 billion in 2018.
According to Reuters, U.S. regulators have opened a probe into Altria’s investment.