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Jessica Alba sees nine-figure windfall, as the honest company goes to the public

The participation of Alba on the honest company is rated in almost $ 130 million, as the company reminds of investors that "success of our brand" depends on the Hollywood star.

Alex Weprin

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Jessica Alba has earned an honest fortune on Wednesday.

The honest company went to the public on Wednesday morning and increased $ 413 million in its IPO. The company that ended on the Nasdaq under the ticker opened up strongly, whereby the stock price rose more than 40 percent intrainstag, and closed to $ 23 per share. The company was valued at more than 1.4 billion US dollars in its IPO.

As the founder and chief creative officer of the honest company is also a significant stakeholder in the company, the diapers and other baby products as well as skin care, bathroom and beauty products manufactures and sold.

After the regulatory applications, ALBA has more than 5.6 million shares of the honest company (including 1.4 million stock options that are exercisable this month). These shares are only 130 million US dollars for the closing price of Wednesday.

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Jessica Alba signed with UTA

In addition to their participation in the company, ALBA receives a one-time dividend of $ 2.6 million and on 26 April signed a new employment contract with the company, which includes a basic salary of $ 700,000 in 2022, an annual Cash bonus worth up to 500,000 US dollars, and annual limited stock units, which were valued at $ 1.5 million, rise to $ 3 million in 2024.

The strong annual payment is partly due to the fact that the honest company is tied up so close to Alba.

In his IPO prospectus, the company told potential investors that "we believe that the success of our brand depends partly on our current affiliation with Jessica Alba," pointed out that it with the Hollywood star an intention of a similarity contract has that you can terminate at any time with written message. "The loss of the services of Mrs. Alba or the loss of our ability to use Ms. Alba similarity could adversely affect our business, financial situation, the results of operations and prospects."

The company also cooked albas robust on social media, wrote that "with a significant global range, including more than 39 million social media trailers worldwide through social media accounts, a congenital and invaluable ability to deal with the Consumers to be understonish and engaging, drivers of trends about demographics and generations, "adding the" we depend on the social media range of Mrs. Alba to connect with consumers and to provide the insight into the current trends. "

alba is also crucial for the future of the company that includes international expansion."We plan to accelerate our growth outside the United States by using the honest brand and the global reach of Jessica Alba," wrote the company in his brochure. "We plan to prioritize markets in which the consumer trends in the direction of clean, ingredient LED products accelerated in our categories."

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