Jessica Alba’s Net Worth Is So High! Stock Price Soars After The Honest Company Goes Public

Last Updated on June 1, 2021

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Jessica Alba’s net worth keeps skyrocketing! After the actress’ consumer goods company, Honest, hit NASDAQ stock prices soared, turning Alba’s 5.6 million shares into a whopping $130 million.

 

During its first trading day, Honest Co.’s stock blew up 44 percent on the NASDAQ, ballooning from its first public offering at $16 per share to an impressive $23 per share when the market closed. The consumer goods company promising no synthetic chemicals and clean, ethical ingredients ended the day Wednesday with a $2.1 billion valuation.

 

The year that ended December 2020, Alba’s salary at The Honest Company was $506,846. But with a bonus and other compensation it came to a whopping $2.33 million, according to Yahoo Finance. It’s really the new share price, however, that will send her net worth soaring.

It was “validation” of the company strategy, according to Honest Co. CEO Nick Vlahos. “We’re a mission-driven brand. We are at the forefront of this kind of clean movement as it pertains to how consumers are looking at products from an ingredient perspective, around sustainability, around social responsibility.”

 

With nearly $413 million raised in its first launch, the Honest company can afford an ethically sourced makeover. Vlahos admitted that the capital raised will help the company expand and innovate, with new product offerings on the way. “What we’re looking at right now is the opportunity to go deeper and wider within the current categories that we’re in, both domestically as well as internationally,” he explained.

 

Jessica Alba is reaping the rewards of her good deeds. The actress started Honest Co. with the mission to build a brand that was free of toxins, chemicals, and lies – hence the name. It started with a commitment to health and safety. She got the idea after she broke out in a rash after touching her baby’s clothes. The detergent was not very “honest.”

 

Though her stock options netted her a quick $130 million Wednesday, the Good Luck Chuck star isn’t planning on parting ways with the company just yet. She recently stepped down as chair of the board but remains the company’s chief creative officer and director of the board.

 

Alba has been essential in building the brand and launching its success. Vlahos called the star a “mega-influencer.” “She is thrilled the vision from 2011 that she established is being executed against. We are looking forward to building the next modern consumer goods company for the future. Then we can look back from a legacy perspective at the next 100 years and say that we created something that’s really magical.”

 

Honest Co. has a laundry list of products, from diapers to beauty essentials to bath and body washes. All products are ethically sourced and have chemical-free ingredients. Customers are eating it up, too. Net sales were up 27 percent last year to a whopping $300 million. The company is playing smarter, not harder, reducing its net loss to $15 million.

 

Like any company, Honest Co. has had its share of flops. The company was sued quite a few times for being less than honest, with lawsuits in 2015, 2016, and 2017. Some products contained sodium lauryl sulfate, a dangerous chemical that Jessica Alba, along with the rest of her company, promised was nowhere to be found.

 

The Honest Co. dished out $1.55 million in a class action settlement, which was $6 million less than its $7.35 million settlement back in 2016. The capital raised through selling stock should keep the company on track, with new products that are as honest as their brand name states.