Playa Vista-based consumer products brand Honest Co. has chosen former Amazon.com Inc. and General Mills Inc. executive Carla Vernón as its next chief executive as it tries to boost its sagging fortunes.
Vernόn, who is set to take the helm on Jan. 9, would become one of the only Black Latina chief executives at a U.S. publicly traded company. She will replace Nick Vlahos, who steps down after nearly six years as chief executive; Vlahos will remain on Honest’s board.
Honest, which was launched in 2012 by film and television actress-turned-businesswoman Jessica Alba, is a consumer brand that has sought to cultivate an eco-friendly and healthy image for the products it produces or attaches its name to.
The company has occasionally been the subject of controversy as various groups have challenged the eco-friendly claims or effectiveness of some of its products, including a sunscreen, a laundry detergent and a baby formula product. The company ultimately prevailed against most of these challenges, but in the process, its image suffered.
Honest Co. went public in May of last year; the IPO generated more than $400 million in capital. On its first day of trading, the stock rocketed to $23 a share.
But the share price has headed steadily downhill since, closing at $2.70 n Dec. 12, the day before the chief executive transition announcement. That’s an 88% drop.
On Dec. 13, the day of the announcement, the share price increased 11% to $3.01; the stock rose another 4% to $3.12 on Dec. 14.
In making the announcement, Alba, who is the company’s chief creative officer, praised Vernόn’s track record.
“What makes Carla unique is her innate ability to drive product innovation and go-to-market strategies that captivate consumers’ imagination, strengthen brand loyalty, and significantly impact the bottom line,” Alba said. “With Carla at the helm, I am confident Honest will continue to redefine category expectations and pave the way for others to follow.”
