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.

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