ISS Recommends Vote Against 4 McKesson Directors Over Executive Pay - Update

(RTTNews) - Proxy adviser Institutional Shareholder Services is of the view that drug distribution company McKesson Corp.'s (MCK) shareholders should vote against four of its directors due to the company's problems in addressing shareholder concern on executive pay, the Wall Street Journal reported.

But ISS excluded Chairman and Chief Executive John Hammergren, stating that negative vote recommendations are not warranted for CEO Hammergren, while adding that the board would benefit from an independent chairman.

According to CtW Investment Group, a prominent shareholder of the company, McKesson has one of the most exorbitant CEO pay practices among S& P 500 members.

CtW is opposing the re-election of McKesson's chairman as well as two other directors - Alton Irby III and Jane Shaw. Irby heads the board's compensation panel while Shaw is head of the governance committee.

ISS said shareholders should vote against Irby and the other three members of the compensation committee - Edward Mueller, Christine Jacobs and David Lawrence - for failing to adequately address the compensation issues. However, the firm does not recommend removal of Shaw, who is expected to retire in a year.

MCK closed up 0.4 percent on Friday at $118.64.