McKesson Reduces CEO's Pay 10%
Investor revolt led board to reduce compensation by nearly $2 million.
McKesson Corp. cut CEO John Hammergren’s pay by about 10 percent following a shareholder revolt spurred by claims about the healthcare firm’s alleged role in the nation’s opioid crisis.
The International Brotherhood of Teamsters led a vote-no campaign in 2017 against the firm’s executive pay plan after accusing the drug distributor of aggravating the opioid epidemic. Last year’s pay package received 26.6 percent support, the second-lowest to date and among the worst of S&P 500 companies.
The board responded by trimming Hammergren’s total reported pay for fiscal 2018 by $1.95 million, changing incentive plan metrics and agreeing to weigh “compliance risk related to opioid distribution” when making compensation decisions, the San Francisco-based company said Friday in a regulatory filing.
Hammergren, 59, received a reported pay package of $18.1 million for the last fiscal year, including a $1.68 million salary, a $3.48 million cash bonus, a long-term cash payout of $570,000 and equity awards of $11.8 million. He forfeited a $7.32 million target performance award from 2016 after the firm posted returns that trailed those of the S&P 500 Health Care Sector Index over the past three years.
Shareholders will vote on the pay package at the firm’s annual meeting July 25.
From: Bloomberg
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