McKesson CEO takes 10% pay cut as company faces opioid lawsuit

McKesson CEO John Hammergren will take a 10 percent pay cut in fiscal 2018 as the company faces a shareholder lawsuit for allegedly failing to audit controls for opioid-based painkillers, according to Bloomberg.

The lawsuit was filed in 2017 by shareholder Chaile Steinberg against former and current McKesson executives and directors. McKesson workers' labor union, the International Brotherhood of Teamsters, led a campaign last year to vote against the company's executive pay plan as a result of the lawsuit.    

The 10 percent trim will take about $1.95 million off Mr. Hammergren's pay in 2018. A regulatory filing also indicates the company has changed incentive plan metrics and will consider opioid distribution compliance risk in executive compensation decisions, according to the report. Mr. Hammergren received $18.1 million total compensation in fiscal 2017, including salary, cash bonus, long-term cash payout and equity awards.

Read more here.


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