Looking for the complete story about LifeVantage Protandim? Read Lazy Man and Money's post about Protandim.

Dr. Joe McCord’s Financial Interest In LifeVantage/Protandim

Update: According to the June 30, 2011 LifeVantage 10-K filing, McCord now gets a majority of his money not from salary or by stock performance (since that has been poor), but based on sales of the product:

"Monthly Compensation. Dr. McCord’s monthly compensation for his services under his employment agreement is $10,000 per month. In addition, Dr. McCord is eligible to receive a monthly commission equal to the product of fifty cents multiplied by the total net bottles sales of Protandim® (or substantially equivalent new products) during the preceding month. Dr. McCord was not awarded any additional stock options in fiscal year 2011 in connection with his hire."

He gets 50 cents for every bottle sold. According to the latest quarterly numbers, LifeVantage's revenue (product sold) is $10 Million dollars. At $50 a bottle he gets roughly 1 percent of that. Quick math shows that to be $100,000 for the quarter - or $400,000 for the year. For a guy that perpetuated the lie that he invented Protandim for years, a wise consumer should be very skeptical of anything he says - Joe McCord's compensation is directly tied to his role of marketing the product.

Now back to the original article about the millions he has in stock options.

A commenter here named Fred tried to make a claim that there was no way that chance that Dr. Joe McCord "sold his soul for the almighty dollar." The crux of his argument was this page on Forbes that shows Dr. Joe McCord's compensation A review of this information shows that Dr. Joe McCord had earned a total of $115,766 in the four years from 2007-2010. All but $12,000 of that was in the form of stock options. The argument was made that this compensation is modest especially over a four year period.

It would be a fair argument if it was the full story.

This is a case where a LifeVantage supporter is only giving a small part of the story. The Forbes data doesn't tell the complete story of Dr. Joe McCord's financial interest in LifeVantage. It is much more than it appears here.

The most important thing to note is that McCord's history with LifeVantage goes back to when the company was still called Lifeline. According to SEC filings on 10/26/2004 he declared he was a 10% owner with 1,928,160 shares of stock. He later amended this 1,606,800 shares. At the time he declared it 10/26/2004, LifeVantage was trading around $3.60 a share. That amended amount is worth $5.75 million dollars. However, the interesting thing is that it using today stock price and market capitalization, it appears that LifeVantage at the time had a value of around $285 million dollars. A 10% owner would therefore have a vested interest worth $28.5 Million.

Either of those numbers may be enough for for Joe McCord to let LifeVantage lie about the creation of Protandim. That's quite a good sum for using McCord as marketing as the company admits.

However, there's a lot more McCord's compensation. Here are the SEC filings of stock options that Joe McCord have been granted from 2007-2011

1/16/2007 - 20,408 shares - $0.49 strike price
1/18/2007 - 240,000 shares - $0.49 strike price
11/13/2007 - 120,000 shares - $0.21 strike price
1/7/2009 - 120,000 shares - $0.21 strike price
11/30/2009 - 120,000 shares - $0.25 strike price
1/20/2011 - 120,000 shares - $0.80 strike price
5/25/2011 - 374,625 shares - $0.20 strike price

The last of these is probably the most interesting. On May 25, 2011, LifeVantage was trading at $1.66, so being issued shares at a $0.20 equates to a instant profit of $1.46 a share multiplied by 374,625 shares. This was instantly worth seeming worth $546,952.50.

With LifeVantage's stock price at $1.39 as of this writing, McCord's stock options are worth $1.1 Million (this is in addition to the other stock he was given that was discussed above). If he can manipulate the stock to $2.50 those options become worth $2.4 million.

As for McCord's financial motivation, there can be little doubt that he's paid well for being a spokesman.

It is up to the reader to decide how much integrity millions of dollars can buy. I presume it varies from person to person.

Originally posted 2011-08-13 23:07:18.

This post involves:

Joe McCord

... and focuses on:


Looking for the complete story about LifeVantage Protandim? Read Lazy Man and Money's post about Protandim.
14 Responses to “Dr. Joe McCord’s Financial Interest In LifeVantage/Protandim”
  1. Julian J Javier Says:

    You seem to dedicate significant amount of time on the details of Protandim and lifevantage and lifeline.
    To do all that work and spend so much time investigating for the sole purpose and pure interest of the public wellbeen is something to admire.
    You remain anonimous which makes me suspicious of your intentions, how can I trust your reports when you remain hidding?

  2. Protandim Scams Says:

    Julian J Javier,

    I’ve had my life threatened when I exposed similar information in the past. How would you choose between continuing to provide this valuable public service (which you admire) and maintaining safety for the sake of myself and my family?

    If I said my name was John Smith (or any other name), how does that impact any article on this website? Take this article for example. Would McCord’s Financial Interest in LifeVantage change? Even if John Smith (or another name) was Joe McCord’s sworn enemy, it still wouldn’t change the fact that he’s being paid extremely good money to be a spokesperson for LifeVantage.

  3. Vogel Says:

    “You remain anonimous which makes me suspicious of your intentions, how can I trust your reports when you remain hidding?”

    I’m more suspicious of people who can’t spell, but that aisde, you do know how to follow a link and read stuff don’t you? That basic ability is all you would need to allay your suspicions. If a fact is a fact, what do underlying intentions have to do with anything.

    This is the same weak disingenuous attack we’ve seen time and time from Protandim distributors on Lazyman’s sites. You might think you’re clever using this tactic but that’s only because you don’t realize how laughable and transparent it is to everyone else.

  4. Melinda Says:

    I don’t care who or what he is, but since Protandim is becoming more and more popular, I want to try them! Maybe, you should leave Dr. McCord alone and go after Protandim. Have doctors do testing on the pills.

  5. Protandim Scams Says:

    Melinda, you missed the point that the commenter was making when he said that McCord was essentially working for free because he he believed in Protandim. The truth is that LifeVantage gave him millions to be a spokesman. It’s a very important difference and consumers should know that truth.

  6. Melinda Says:

    So, Montel William and Donny Osmond must be hired by the company too. Anyway, all I care about was the pills, and I’m going after the pills. If you have any proofs that the pills is fake, I’ll look more into it , otherwise, I’m going to take the pills, and let you know further.

  7. Protandim Scams Says:

    Yes, Melinda, Montel Williams and Donny Osmond are/were paid spokesmen for LifeVantage. There are press releases from LifeVantage that make this clear.

    I say “were” in regard to Montel because he doesn’t seem to be associated with the company any more and has moved on to medicinal marijuana – see bottom of http://www.protandimscams.com/montel-williams-breaks-the-law-pitching-protandim/

    This website has lots of evidence that the pills don’t do anything. No one is going to spend the millions necessary to prove a pill to be fake. It is up to LifeVantage to prove that they are real and they haven’t shown that they aren’t willing to even try to get it approved by the FDA. If the product was real this approval would get them billions of dollars. The fact that they don’t try is proof positive that they don’t believe in their own product.

  8. Melinda Says:

    Like I’ve said, I’m going to try them. I’ll let you know how it work on me. I get all my medicines from drug stores only, but I’ll try this one, and let you know further. Oh, by the way, Protandim is a supplement, and most supplements does not have FDA approval.

  9. Protandim Scams Says:

    You are welcome to try them, but it’s not worth reporting back whether they work on you or not. There’s something called the placebo effect, which makes your “test” invalid.

    A supplement can be approved by the FDA for health conditions. For example calcium and vitamin D are approved to help with osteoporosis. Here is a page with a few examples:

    http://www.fda.gov/food/labelingnutrition/labelclaims/healthclaimsmeetingsignificantscientificagreementssa/default.htm

    So while most supplements don’t have FDA approval, that’s because most supplements are not shown to help with a health condition. LifeVantage and its distributors make many health claims. For them to legally do this they need to get the necessary FDA approval.

  10. James Says:

    So what?

  11. protandimscams Says:

    So when Joe McCord is caught lying about inventing Protandim multiple times it is worth noting that he’s getting paid millions to do it.

    As I noted in the article, a commenter made the point that Joe McCord is just trying to help people and is not being compensated for it. The exact opposite is true.

    The wise consumer realizes that he is essentially Michael Jordan pushing Air Jordans. It is all marketing, they don’t help you in reality.

  12. Michael Says:

    protandimscams,

    Many scientific journals require authors to acknowledge any conflict of interest (http://www.elsevier.com/journals/free-radical-biology-and-medicine/0891-5849/guide-for-authors#7000). Joe McCord has published several articles using Protandim and I did not see a conflict of interest statements in the few articles that I checked where is was the co-author (http://www.ncbi.nlm.nih.gov/pubmed?term=(Protandim)+AND+McCord+Joe&cmd=DetailsSearch). I think you should notify the publishers of those about this seemingly unethical scientific behavior.

  13. protandimscams Says:

    That’s a good find on the guidelines of Free Radical Biology and Medicine Journal. You’d think that since Joe McCord is on the Editorial Board at that journal, he’d be aware of such guidelines, right? One would say that he even has the responsibility to make sure those guidelines are enforced.

    Of course it’s also easier to get your article published without adhering to the guidelines of stating conflicts of interest when you are on the Editorial Board.

  14. » LifeVantage Shows the Research isn’t Independent Says:

    […] I know that Scientific Advisory Board positions are paid for (proof? See Joe McCord's Financial Interest) and LifeVantage knows it. You should know it too. The consulting gigs aren't free. One should ask […]

 

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