Edward Smolyansky, who along with Ludmila Smolyansky beneficially owns approximately 27% of Lifeway Foods' common stock, issued a statement on May 2, 2025, criticizing Lifeway's amended 2024 Annual Report and its disclosures on executive and director compensation. He suggested the Board is planning to delay the 2025 Annual Meeting of Shareholders past June 2, 2025.
Smolyansky questioned the $2 million retention bonus and a $6.5 million equity grant awarded to CEO Julie Smolyansky in December 2024, noting that these rewards came in a year when Lifeway's earnings declined by 20.6%. He also highlighted the quiet increase of her change-in-control severance multiple from 2x to 3x her base salary.
He further criticized Lifeway for initiating multiple lawsuits against its largest shareholders, costing over $1 million with no return, and for eliminating its internal legal department in January 2020. Smolyansky alleged that Jason Burdeen, the CEO's husband and Chief of Staff, without legal training, has assumed wide-ranging control over legal matters and received a $313,800 compensation package in 2024.
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