After almost a decade at WeightWatchers, Oprah Winfrey has decided to step down from its board of directors, and the aftermath has been detrimental to the company’s stock.
The move from Oprah comes shortly after she revealed in an interview with People Magazine in December last year that she uses an unspecified weight loss medication to help maintain her weight and reach her goal of 160 lbs. This revelation sparked controversy since Oprah was a board member and advocate of WeightWatchers, which promotes programs that encourage people to make lifestyle changes to help with weight loss.
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"The fact that there's a medically approved prescription for managing weight and staying healthier, in my lifetime, feels like relief, like redemption, like a gift, and not something to hide behind and once again be ridiculed for,” said Winfrey in the interview with People.
Weight loss drugs such as Ozempic, Wegovy etc., which are also used to treat diabetes, have come under scrutiny recently for their high demand. As a result, this led to shortages of the GLP-1 medications, leaving people with diabetes unable to refill their prescriptions. The health risks of using these medications have also sparked controversy.
In WeighWatchers’ announcement of Oprah’s departure, the company claimed that she will not stand for reelection at the company's annual meeting of shareholders in May, and that part of the reason for her decision to resign was “to eliminate any perceived conflict of interest around her taking weight loss medications.”
The announcement also claims that Oprah will be donating her shares of the company to the National Museum of African American History and Culture in an effort to “support the NMAAHC’s goal to promote and highlight the contributions of African Americans.”
Oprah joined WeightWatchers in 2015 shortly after she purchased over 6 million shares of the company’s stock for over $43 million. In 2019, she was granted a fully vested option to purchase over 3 million shares of the company’s stock, which was approved by shareholders in May 2020. She had an overall 10% stake in the company.
Oprah claims that even though she is exiting the board, she will continue to advocate for weight health in the future.
“I look forward to continuing to advise and collaborate with WeightWatchers and CEO Sima Sistani in elevating the conversation around recognizing obesity as a chronic condition, working to reduce stigma, and advocating for health equity,” said Winfrey in the announcement. “Weight Health is a critically important topic and one that needs to be addressed at a broader scale. I plan to participate in a number of public forums and events where I will be a vocal advocate in advancing this conversation.”
Shortly after Oprah’s exit from WeightWatchers was announced, the company’s stock tumbled by around 20% and is being sold for around $3 a share.
Oprah’s membership on the board has always appeared to have influenced the company’s stock price. Before she joined the company in 2015, WeightWatchers’ stock was being sold for around $6.50 a share, and following her appointment to the board, the stock price increased to around $15.7 a share.
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