This Day On The Street
Continue to site
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

The McKesson Board Battle

I've included its trailing 12-month (TTM) payout ratio that is heading higher albeit it's not well reflected in the dividend yield. As of March 31, MCK had total cash of $2.46 billion.

MCK's operating cash flow (TTM) as of the same date stood at $2.48 billion with levered free cash flow of $1.61 billion. Its year-over-year quarterly earnings fell by more than 50% in the first quarter of 2013.

Analysts are looking for the company to report around an 8.4% increase in the current quarter's earnings per share. The report is scheduled for around the time of the upcoming annual meeting on July 31.

On June 26, MCK reaffirmed its earnings guidance for the fiscal year ending March 31, 2014, and the underlying key assumptions provided in its press release of May 7.

McKesson hosted its Investor Day on June 26 in Boston. A webcast of the presentations is available at McKesson's informative Web site.

In defense of Hammergren, according to MCK the company's value has tripled to more than $25 billion during his 14-year tenure, and he has a "...track record of creating sustained shareholder value" that a company statement claims " the best test of our corporate governance."

Meanwhile, CtW's executive director, Dieter Waizenegger, has publicly stated concerning MCK, "This is one of the worst-governed companies out there."

Waizenegger claimed the campaign to oust Hammergren as chairman isn't a judgment on his track record as CEO but a vote against "the failed leadership of the board."

Last year shareholders approved a nonbinding vote to split the roles of CEO and chairman. The board of directors decided instead to make its own changes, which to some looked like a refusal to comply.

All kinds of allegations have gone back and forth between CtW and the company ever since. It's not within the scope of this article to articulate them, but they're not hard to find using a good search engine.

If you like to keep tabs on slugfests involving big public companies and their most agitated shareholders the situation at McKesson is worth keeping on your radar screen. As the stock chart above seems to indicate, it hasn't hurt the price per share and the majority shareholders seem to be hanging tough.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MCK $189.95 1.96%
AAPL $112.12 2.39%
FB $93.24 0.83%
GOOG $643.61 0.70%
TSLA $220.69 -2.66%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs