Steven Hatchett
NU SKIN ENTERPRISESAbout Steven Hatchett
Steven K. Hatchett is Executive Vice President and Chief Product Officer at Nu Skin Enterprises. He joined Nu Skin in 2018, served as SVP Global Manufacturing (2018–2021), then SVP Global Products (2021–2022), and has been EVP & CPO since 2022 . He is 53 years old as of February 14, 2025 . Prior experience includes CEO of Elevate Health Sciences (2015–2018; acquired by Nu Skin in 2018), VP Manufacturing & Product Innovation at Forever Living Products, and CEO/President at Cornerstone Research & Development . Company performance frameworks linking his incentive pay emphasize Adjusted EPS, adjusted revenue and operating income, and strategic product/commercial goals; 2024 outcomes included Adjusted EPS of 0.84, company TSR of $20.30 vs $155.83 for peer group, and Rhyz segment revenue growth of 32% YoY .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Nu Skin Enterprises | EVP & Chief Product Officer | 2022–present | Leads global product strategy and portfolio; incentives tied to EPS and growth metrics |
| Nu Skin Enterprises | SVP Global Products | 2021–2022 | Oversaw product roadmap and launches (e.g., ageLOC categories) contributing to strategic goals metrics |
| Nu Skin Enterprises | SVP Global Manufacturing | 2018–2021 | Led manufacturing; operational efficiency relevant to adjusted operating income |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Elevate Health Sciences | Chief Executive Officer | 2015–2018 | Built nutraceutical manufacturing capability later integrated into Nu Skin via acquisition |
| Forever Living Products | VP Manufacturing & Product Innovation | Not disclosed | Product innovation and manufacturing leadership experience |
| Cornerstone Research & Development | CEO/President | Not disclosed | Executive leadership in supplement/consumer health manufacturing |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | 413,414 | 436,066 |
| Bonus ($) | — | 100,000 (Mavely Value Creation Bonus) |
| Stock Awards ($) | 781,628 | 941,166 |
| Non-Equity Incentive Plan Compensation ($) | 181,896 | 82,500 |
| All Other Compensation ($) | 37,952 | 39,657 |
| Total ($) | 1,414,890 | 1,599,389 |
| Base Salary Progression | Amount ($) |
|---|---|
| Salary as of 1/1/2024 | 416,000 |
| Salary as of 12/31/2024 | 440,000 |
Performance Compensation
Annual Cash Incentive (Executive Cash Incentive Plan – 2024)
| Metric | Minimum | Goal | Stretch | Actual | % of Goal Achieved | % of Target Bonus Paid |
|---|---|---|---|---|---|---|
| Adjusted revenue ($000s) | 1,791,527 | 1,903,400 | 2,044,400 | 1,808,151 | 95.0% | 0.0% (blocked by OpInc miss) |
| Adjusted operating income ($000s) | 115,750 | 136,333 | 171,131 | 104,023 | 76.3% | 0.0% |
| New product revenue ($000s) | 210,000 | 260,000 | 310,000 | 229,974 | 88.5% | 55.0% |
| Net reduction in SKUs (count) | 400 | 550 | 700 | 849 | 154.4% | 200.0% |
| Paid affiliates (count) | 160,000 | 170,000 | 180,000 | 147,288 | 86.6% | 0.0% |
| Adjusted Rhyz revenue ($000s) | 236,608 | 255,149 | 273,690 | 286,618 | 112.3% | 200.0% |
| Aggregate payout (% of target) | — | — | — | — | — | 25% (cap due to OpInc miss) |
| Individual Outcome (2024) | Value |
|---|---|
| Target Bonus ($) | 330,000 |
| Actual Bonus ($) | 82,500 |
| Payout (%) | 25% |
Notes:
- 2024 financial components did not pay due to adjusted operating income below minimum; strategic goals paid but aggregate capped at 25% .
Long-Term Equity Incentives and Outcomes
| Award | Grant Date | Target Units (#) | Fair Value ($) |
|---|---|---|---|
| Performance RSUs (PRSUs) | 2/27/2024 | 39,495 | 472,756 |
| Time-Based RSUs | 2/27/2024 | 39,495 | 468,411 |
| Performance Tranche Measured on 2024 | Percent of Target Earned |
|---|---|
| 2024 PRSU Awards – Tranche 1 of 3 | 28% |
| 2023 PRSU Awards – Tranche 2 of 3 | 0% |
| 2022 PRSU Awards – Tranche 3 of 3 | 0% |
Vesting mechanics:
- RSUs vest one-fourth annually, beginning February 15 of the year following grant; accelerated on qualifying termination in connection with change-in-control (double-trigger) .
- PRSUs are three tranches with pre-set Adjusted EPS goals for the grant year and two following years; vesting in the year after performance measurement, subject to committee approval .
One-Time Value Creation Bonus (2025)
- Mavely transaction bonuses: Hatchett received $100,000 (paid in full in 2025) for contributions to developing the Mavely business and Rhyz strategy; sale closed Jan 2, 2025 at $250M total value, ~5x cumulative investment, ~$201M expected net cash proceeds used to reduce debt and fund innovation .
Equity Ownership & Alignment
Beneficial Ownership (as of April 1, 2025)
| Holder | Shares | Percent of Class |
|---|---|---|
| Steven K. Hatchett | 65,140 (10,481 acquirable within 60 days) | Less than 1% |
Outstanding Equity Awards at FY-end 2024 (Steven K. Hatchett)
| Award Type | Grant Date | Unvested/Unearned (#) | Market/Payout Value ($) | Details |
|---|---|---|---|---|
| RSU | 2/27/2024 | 39,495 | 272,121 (at $6.89) | Vests 25% annually starting 2/15/2025 |
| PRSU (target) | 2/27/2024 | 39,495 | 272,121 (at $6.89) | Three tranches; tranche 1 earned 28% |
| RSU | 2/22/2023 | 7,688 | 52,970 | Standard 4-year schedule |
| RSU | 2/25/2022 | 2,950 | 20,326 | Standard 4-year schedule |
| RSU | 2/15/2021 | 1,106 | 7,620 | Standard 4-year schedule |
| PRSU (target) | 2/22/2023 | 1,717 | 11,830 | 2024 tranche paid 0% |
| PRSU (target) | 2/25/2022 | 752 | 5,183 | 2024 tranche paid 0% |
| Options (PSO) | 3/8/2018 | 1,224 @ $71.99, exp 3/8/2025 | — (out of the money; no value counted) | Performance-based stock options |
| Options (PSO) | 2/15/2020 | 5,602 @ $30.45, exp 2/15/2027 | — (out of the money; no value counted) | Performance-based stock options |
| Options (PSO) | 2/15/2021 | 4,879 @ $48.81, exp 2/15/2028 | — (out of the money; no value counted) | Performance-based stock options |
Alignment policies:
- Ownership guidelines: Other executive officers must hold shares valued at 2.5x base salary; phased in over five years. As of March 31, 2025 all NEOs were in compliance .
- Hedging and pledging: Prohibited for directors and employees, including officers .
- Equity retention: Must retain 50% of net shares until guideline met .
Employment Terms
- Severance policy multipliers: For executive officers (including Hatchett), involuntary termination not for cause (including constructive termination) equals 1.25x annual salary; change-in-control equals 1.5x (salary + target bonus for CEO; for other NEOs salary+target bonus multiplier applies per policy) .
- Potential Payments (if terminated on 12/31/2024):
- Involuntary termination not for cause: Severance $632,500; health benefits $20,916; deferred comp $42,222; total $695,638 .
- Termination in connection with change-in-control (double-trigger): Severance $1,237,500; equity acceleration $693,210; health benefits $20,916; deferred comp $42,222; total $1,993,848 .
- Change-in-control mechanics: Awards vest if not assumed/substituted; otherwise double-trigger vesting upon qualifying termination post-CoC; performance awards vest based on actual performance .
- Clawbacks: Executive Officer Incentive Compensation Recovery Policy adopted Nov 2023; mandatory recoupment of erroneously received incentive-based compensation within 3 fiscal years if restatement required (misconduct not required) .
- Cancellation/forfeiture: Awards may be canceled and gains recouped upon violation of non-compete/non-solicit/non-disclosure or misconduct .
- Tax gross-ups: No excise tax gross-ups provided to NEOs .
- Indemnification: Executives have indemnification agreements and D&O insurance provisions .
Performance & Track Record
| Company Performance Indicators | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Adjusted EPS | 4.14 (2021 baseline) | 2.90 | 2.06 | 0.84 |
| Net Income (Loss) ($000s) | 147,266 | 104,778 | 8,595 | (146,594) |
| TSR – $100 initial investment (Company) | 132.76 | 114.25 | 55.88 | 20.30 |
| TSR – $100 initial investment (Peer Index) | 143.15 | 133.89 | 153.95 | 155.83 |
Additional operational context:
- 2024 revenue: $1.73B; negative FX impact $76M; debt reduced by $110M in 2024 and additional $115M in January 2025 following Mavely sale .
- Rhyz segments grew revenue 32% YoY in 2024 after 41% growth in 2023; Mavely sale validated Rhyz strategy with expected ~$201M net cash proceeds .
Board Governance and Compensation Program Signals
- 2024 Say-on-Pay approval: 96% .
- Compensation program design (2024→2025): Annual cash metrics (Adjusted revenue 37.5%, Adjusted operating income 37.5%, Strategic goals 25%); long-term mix 50% time-based RSUs and 50% PRSUs tied to Adjusted EPS; 2025 strategic goals increased focus on Nu Skin gross margin/selling expense and Rhyz revenue .
- Peer group for benchmarking (2024): Beyond, Coty, Cricut, Edgewell, Hain Celestial, Helen of Troy, Herbalife, Prestige Consumer Healthcare, Sally Beauty, Sensient, Sonos, Spectrum Brands, USANA; 2025 update replaced Coty with Olaplex .
- No option repricing without stockholder approval; minimum one-year vesting standard (limited exceptions) .
Compensation Structure Analysis
- Year-over-year mix: Equity remains a substantial component; 2024 stock awards increased ($941K from $782K) as PRSU tranche payouts near minimum align with challenging EPS, tightening pay-for-performance .
- Shift in risk: Options outstanding are out-of-the-money at year-end 2024 (strike $30.45–$71.99), reducing near-term exercise incentive and minimizing repricing risk due to plan prohibitions .
- Discretionary adjustments: One-time Mavely value bonuses reflect transaction-based value creation outside annual plan mechanics .
- Performance goals calibration: Subsequent-year PRSU goals declined over 2022→2024 grants to reflect market headwinds; 2024 PRSU tranche earned 28% of target, indicating challenging but achievable hurdles .
Equity Ownership & Alignment Details
| Policy/Status | Detail |
|---|---|
| Ownership guideline | 2.5x base salary; retain 50% of net shares until met |
| Compliance | All NEOs compliant as of Mar 31, 2025 |
| Hedging/Pledging | Prohibited for directors and employees |
| Equity retention | Applies to executives and directors |
Employment Terms Summary
| Provision | Terms |
|---|---|
| Severance (not for cause) | 1.25x annual salary for executive officers; pro-rata bonus; 12 months health continuation (lump sum) |
| Change-in-control | 1.5x (executive officers) multiple; pro-rata bonus; double-trigger equity vesting; performance awards vest based on actual performance |
| Clawback | Mandatory recoupment for restatements (3-year lookback) and misconduct/competitive violations |
| Indemnification | Individual agreements and D&O insurance maintained |
Investment Implications
- Alignment: Strong clawback, hedging/pledging bans, and ownership guidelines (2.5x salary) support long-term alignment; all NEOs in compliance .
- Retention risk: Double-trigger severance economics and significant unvested RSUs/PRSUs (with multi-year vesting) create retention hooks; Hatchett’s change-in-control package totals ~$2.0M including equity acceleration as of 12/31/2024 .
- Insider selling pressure: Upcoming annual RSU vest tranches (e.g., 39,495 RSUs from 2024 grant vesting 25% per year) may add supply; options remain out-of-the-money, limiting exercise-driven sales .
- Performance gating: Cash incentive payouts were capped at 25% due to adjusted operating income miss; PRSU outcomes tied to Adjusted EPS tranches reinforce sensitivity to earnings recovery. With company TSR at $20.30 vs peer $155.83 in 2024 and Adjusted EPS at 0.84, equity realizations depend on turnaround execution in product portfolio, margin improvement, and Rhyz growth .
- Governance support: High Say-on-Pay (96%) and no option repricing indicate shareholder-friendly compensation governance, reducing pay-related controversy risk .