This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The McKesson Board Battle

Stocks in this article: MCK HPQ

NEW YORK ( TheStreet) -- This reads like another page from the annals of what makes publicly traded companies tough to govern. When the shareholders (or a group of them) get fed up, the feathers can really start flying.

That's apparently what's going on at McKesson (MCK), a company as old as the hills.

According to the company's historians, "Over the past 180+ years we have played a fundamental role in helping to shape the design and direction of health care: helping to set standards for the health care supply chain and playing a large role in our industry's technology revolution."

Now the company faces another historical showdown. A rather powerful union investment group is opposing the reelection of MCK's chairman and two other board directors. Among other complaints -- CtW Investment Group, which represents this investors group, says the chairman and CEO is paid too much.

They also claim Chairman and CEO John Hammergren has ignored a directive from a shareholder advisory vote calling for his dual roles to be split in two. The union investment group doesn't want two other board members who head the compensation and governance committees to be re-elected either.

You may recall that CtW was the group that led a campaign earlier this year that opposed Hammergren's outside activity as a longtime director of Hewlett-Packard (HPQ). It led to his eventual resignation from the HPQ board of directors.

CtW, a group representing the labor federation Change to Win, advises union pension funds. CtW said recently that its fund owns a total of 1.4 million of MCK shares. MCK has about 228.5 million shares outstanding and a market cap of nearly $26 billion.

As the one-year chart below illustrates, it has been a banner year for MCK shares even though its dividend of 80 cents per share offers a paltry yield of only 0.70%. Not exactly what you'd call "shareholder-friendly."

MCK Chart MCK data by YCharts

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,883.30 +78.50 0.44%
S&P 500 2,072.27 +1.62 0.08%
NASDAQ 4,774.7930 +9.4130 0.20%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs