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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 "...is 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.

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