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.
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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.