Seeking Alpha

McKesson CEO reduces pension after activist investors complain

  • McKesson (MCK +1%) is making more changes to its executive compensation program, and CEO John Hammergren is voluntarily reducing his pension benefit by $45M, after activist investors complained about the company's pay structure.
  • Hammergren's pension benefit still amounts to $114M after the reduction, but it will be a fixed amount in cash that's not subject to big potential moves that can result from changes in company assumptions about interest rates or other issues.
  • Critics say the moves are welcome but not enough; the company's executive pension plan is still "the richest in corporate America," says one governance analyst.
  • Separately, MCK says it has launched a voluntary takeover offer for the remaining shares outstanding of Celesio (CAKFF) for €23.50/share ($32.44); MCK, which owns more than 75% of Celesio's shares, last month received the necessary support to acquire its German rival after facing earlier opposition.
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|