McKesson CEO Takes $45M Pension Pay Cut Amid Pressure

McKesson (NYSE:MCK) lowered the pension payment of chief executive John Hammergren by $45 million on Friday in response to increasing shareholder pressure.

The company’s joint chairman and CEO voluntarily reduced his benefit in a letter to McKesson’s compensation committee Friday after “shareholder feedback” sparked an overhaul of the medical supplier's long-term equity and cash compensation programs.

Beginning with fiscal year 2015, payouts to executive officers under McKesson’s restricted stock unit program will be determined solely by comparing total shareholder return over a three-year period against return for the S&P 500 Health Care Index for the same period.

“We continue to address the input we hear from our shareholders and are committed to maintain industry-leading governance and compensation practices,” Jane Shaw, chair of McKesson’s compensation committee, said in a statement.

Shares of the San Francisco-based company were up 1.34% to $176.77 in recent trade.