- 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.
at Investor's Business Daily (Jan 16, 2015)