August 2, 2013 / 7:21 PM / 4 years ago

McKesson directors re-elected with solid majority

Aug 2 (Reuters) - Drug distributor McKesson Corp revealed shareholder voting results on Friday that showed all of its directors, who faced opposition from prominent proxy advisory firms and investors, were re-elected with solid majorities.

Compensation committee chairman Alton Irby was re-elected with 60 percent of the votes cast in his favor, while corporate governance committee head Jane Shaw was re-elected with 85 percent of votes.

Proxy advisory firm Glass Lewis and CTW Investment Group, part of the Change to Win labor federation that includes pension funds invested in McKesson, wanted Irby and Shaw out. They have been critical of McKesson’s executive compensation practices and its inadequate response to shareholder proposals.

ISS, another proxy advisory firm, had also urged shareholders to vote against the re-election of Irby, along with compensation committee members Edward Mueller, Christine Jacobs and David Lawrence.

McKesson’s regulatory filing on Friday showed that Mueller, Jacobs and Lawrence were re-elected on Wednesday with 71 percent, 67 percent and 68 percent of votes, respectively. ()

Shareholder concerns have primarily centered around the $158 million in lump-sum pension that Chief Executive John Hammergren would have received if he had retired. Some investors also protested Hammergren’s dual chairman and CEO roles.

Hammergren’s re-election to the board was supported by about 95 percent of votes cast at the meeting.

A proposal to approve, on an advisory basis, the compensation of McKesson’s executive officers did not receive shareholder support, with 78 percent of the votes cast against the proposal.

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