Categories: CEOs in the News

McKesson CEO Exit Pay Under Attack

John Hammergren, CEO of McKesson narrowly avoided a $140 million cut to his $182.6 million severance pay package. He would have probably been able to get by just fine on the remaining $42 million, which includes more than $2.2 million for the provision of an office and secretary, but that would have been a big haircut for any CEO exit payout.

Forty-four percent of shareholders who voted at McKesson’s annual meeting last Wednesday supported a resolution calling for the company to prevent what is known as “accelerated vesting” of outstanding equity pay. Often, when a CEO or other executive is fired, the stock options and restricted stock that would vest slowly over time vest all at once, resulting in a pay windfall called a golden parachute.

Read more: Fortune

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