McKesson Shareholders Vote In Favor Of A Clawback Policy


for , one of the largest pharmaceutical wholesalers in the US, voted in of instituting a that was proposed by two institutional . Although clawbacks are hardly new, the underscores growing concern about allegations of health care fraud and outsized executive compensation in the pharmaceutical industry.

In their campaign to institute the policy, the Amalgamated Bank and the UAW Retiree Medical Benefits Trust argued that McKesson has paid more than $ 1 billion in recent years to resolve regulatory and other legal disputes without publicly disclosing any clawback steps. Meanwhile, McKesson ceo John Hammergren received $ 131 million in compensation last year.

“We’re pleased that investors agreed that McKesson should strengthen and disclose the use of its clawback policy. Robust and rigorous clawbacks promote pay-for-performance and help set clear incentives for ethical conduct and accurate financial reporting,” Scott Zdrazil, who heads corporate governance at Amalgamated Bank, says in a statement. The investors hold 150,000 McKesson shares.

As we noted previously, clawback policies have gained traction among large investors who are growing increasingly leery of the pharmaceutical industry. Over the past several years, numerous drugmakers have settled civil and criminal charges with US authorities for such infractions as marketing drugs for unapproved uses and defrauding federal health care programs, including Medicare and Medicaid.

And this paragraph is from an earlier story, too: A half dozen drugmakers recently struck a deal with 13 institutional investors, including the UAW Retiree Medical Benefits Trust, to revise their compensation policies in order to make it easier to recover payouts to executives. The drugmakers include Amgen (AMGN), Bristol-Myers Squibb (BMY), Eli Lilly (LLY), Johnson & Johnson (JNJ), Merck (MRK) and Pfizer (PFE) (…Read more

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