Here is a nice little punch in the stomach this morning. How many of you have heard or work with the company called McKesson? If you don’t, here is their little sound bite on their own website:
McKesson helps health care providers improve business health and deliver better care to patients. As a pharmaceutical distributor and health care information technology company, McKesson provides systems for medical supply management, clinical workflow, practice management, pharmacy automation and care management.
Sounds like everything that has destroyed healthcare, right? Well, the company made news recently because the CEO decided to take a pension pay cut. Isn’t that cool? He cares about his reputation and the plight of the common man and didn’t want to come off looking greedy. Here is his story:
CEO John Hammergren received $51.7 million in compensation for fiscal 2013, including a big increase in the value of his pension benefit as well as $11.5 million in incentive pay. In a letter to the chairwoman of McKesson’s compensation committee, Mr. Hammergren said he was voluntarily reducing his pension benefit because it had become “a source of distraction” for the company. He cut his pension benefit by $45 million as the company revamped its incentive-compensation program for top executives, in the wake of complaints from activist investors. His pension benefit still amounts to $114 million after the reduction, but that will be a fixed amount in cash, not subject to big potential moves that can result from changes in the company’s assumptions over factors like interest rates.
Hmmm. $114 million. I know, it still not enough to live on but it’s a start. Think of that today while you grind it out in the clinic, burning out at warp speed. 🙂