John H. Hammergren, chairman, CEO and president of McKesson, has voluntarily reduced his pension benefit by $45 million in response to investors' feedback.
Mr. Hammergren's compensation and pension benefits had recently been criticized by shareholders, who claimed he was overpaid and the company had improperly ignored a shareholder vote to separate the board chairman and CEO roles, both of which Mr. Hammergren currently holds, according to a report in The Wall Street Journal.
Mr. Hammergren received $51.7 million in compensation in fiscal year 2013, as well as $11.5 million in incentive pay and an increase to his pension benefit, according to a NASDAQ report.
In addition to the reduction in Mr. Hammergren's pension benefit, McKesson has announced a resdesign of its cash incentives and long-term equity programs for executives, though no specifics were released.
Mr. Hammergren's previous pension benefit of $159 million had been "record-setting," and the reduced amount of $114 million remains one of the largest pension benefits in corporate America, according to The Wall Street Journal. Mr. Hammergren is eligible to retire as early as this year.
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