Mckesson Corporation · NYSE:MCK
Mckesson — Shareholder Meeting (July 2020)
21 slides from Mckesson's shareholder meeting presentation, Jul 9, 2020
Slide 1: McKesson Corporation 2020 Annual Meeting of Shareholders
July 29, 2020 8:30 a.m. Central Daylight Time www.virtualshareholdermeeting.com/MCK2020 McKesson Corporation 2020 Annual Meeting of Shareholders
Slide 2: McKesson Requests Your Support at Our 2020 Annual Meeting
McKesson Appreciates Your Investment and Requests Your Support at Our 2020 Annual Meeting of Shareholders 1. Election of 11 Directors for a One-Year Term 2. Ratification of Appointment of the Independent Registered Public Accounting Firm 3. Non-Binding Advisory Vote on Executive Compensation 4. Shar
Slide 3: McKesson At a Glance
Our vision is to improve patient care in every setting — one product, one partner, one patient at a time McKesson At a Glance Delivering 1/3 of all prescription medicines in North America #1 distributor in community oncology and key specialties 275,000+ SKUs of brand and private label medical-surgic
Slide 4: Gaining Momentum Through Execution
Over the past year, our management team has made substantial progress on our strategic growth initiatives, which are focused on creating innovative solutions that improve patient care delivery and drive incremental profit growth Gaining Momentum Through Execution Expanded capabilities to bring them
Slide 5: COVID-19 Response Efforts: Taking Action For Our Stakeholders
As one of the world’s largest healthcare companies, we have a critical role to play in making medications and supplies available to customers and patients when they need them COVID-19 Response Efforts: Taking Action For Our Stakeholders Trusted Partner Coordinating with the U.S. Department of Health
Slide 6: Strong Track Record of Shareholder Engagement and Responsiveness
We have a strong track record of shareholder engagement and responsiveness Shareholder Engagement Program We are committed to ensuring shareholder input is integrated into our compensation program and practices Held extensive dialogue with shareholders following a disappointing level of support for
Slide 7: Topics of Shareholder Concern and Changes Discussed in FY 2020
Topics of Shareholder Concern Changes Discussed with Shareholders in FY 2020 Executive Compensation Supplemental pension benefits are overly generous No actively employed participants in the Company’s supplemental pension plan General disfavor for legacy employment agreements None of our current exe
Slide 8: Executive Compensation Pay Elements and Metrics
Pay Element FY 2020 Metric Weight Rationale Base Salary -- -- Attracts and retains high-performing executives by providing market-competitive fixed pay Management Incentive Plan Adjusted EPS 50% Rewards operational performance and bottom line profitability; important driver of share price valuation
Slide 9: Robust, Independent Board Oversight
Edward A. Mueller (Independent Chair) Retired Chairman of the Board and Chief Executive Officer, Qwest Communications International Inc. Our directors’ diverse backgrounds contribute to an effective and well-balanced Board that is able to provide valuable insight to, and effective oversight of, our
Slide 10: Breadth of Director Skills
Breadth of Director Skills Balance of Diverse Perspectives and Experience Our Directors Have a Robust Mix of Skills and Experiences, and Diverse Perspectives Average Director Tenure 6.5 years After our two longest-serving directors, Christine Jacobs and Marie Knowles, indicated that they intend to c
Slide 11: Strong Corporate Governance Practices
We are committed to continually assessing our governance policies and structures to incorporate best practices Strong Corporate Governance Practices Key Features of Our Corporate Governance Practices Shareholder Rights Annual elections Majority voting for elections Right to call special meeting of s
Slide 12: Board Oversight of Risk Management
Our Board and its committees play an instrumental role in overseeing enterprise risks such as risks related to strategy and reputation, financial reporting, compensation practices, cybersecurity and distribution of controlled substances Board Oversight of Risk Management Committee Roles in Risk Over
Slide 13: A Culture of Compliance
A Culture of Compliance In 2019, our Board formed a standing Compliance Committee to assist in overseeing the Company’s compliance programs and management’s identification and evaluation of its principal legal and regulatory compliance risks. Recognizing the critical role fresh perspectives and expe
Slide 14: New Leadership's Focus on Winning As One Team
New Leadership’s Focus on Winning As One Team Last year, Brian Tyler launched the Team McKesson corporate culture initiative Focused on being open and candid, how to debate, decide and commit when making decisions within and across business units and the importance of maintaining an enterprise first
Slide 15: Inclusion, Diversity, Equality and Culture
100% on the Human Rights Campaign’s Corporate Equality Index (of LGBTQ workplace equality) in 2020 Recognized as one of the best employers for diversity by Forbes in 2020 Named as one of the best places to work by the Disability Equality Index® in 2019 Recognized as a Military Friendly® Employer in
Slide 16: Focus on Corporate Responsibility
Establishing new environmental best practices is a priority across our businesses; we work to capture the metrics most relevant to our lines of business and act on recommendations that lead to a healthier environment Focus on Corporate Responsibility Embracing Sustainability Practices Increase LED l
Slide 17: Item #4: Shareholder Proposal on Action by Written Consent
Item #4: Shareholder Proposal on Action by Written Consent of Shareholders Given our existing governance structures, which provide shareholders with other effective means to express their views, the Board believes that implementation of this proposal is unnecessary and may deprive shareholders of th
Slide 18: Item #5: Shareholder Proposal on Lobbying Activities and Expenditures
Item #5: Shareholder Proposal on Lobbying Activities and Expenditures McKesson refined its policy in 2017, 2018, 2019 and 2020, with recent enhancements focused on controlled substances This year, we further enhanced our political contributions and lobbying policy(1): Clarified that the Board’s over
Slide 19: Item #6: Shareholder Proposal on BRT Statement of Purpose
Our Board reviewed our disclosures and concluded that they already demonstrate close alignment with the BRT Statement The Board concluded no amendments to our governance and management systems are needed based on the robust nature of the Company’s public disclosures regarding its practices and commi
Slide 20: McKesson Requests Your Support at Our 2020 Annual Meeting
McKesson Appreciates Your Investment and Requests Your Support at Our 2020 Annual Meeting of Shareholders 1. Election of 11 Directors for a One-Year Term 2. Ratification of Appointment of the Independent Registered Public Accounting Firm 3. Non-Binding Advisory Vote on Executive Compensation 4. Shar
Slide 21: The information contained in this presentation is being provided to shareholders in addition to
2 The information contained in this presentation is being provided to shareholders in addition to the proxy statement filed by McKesson Corporation (the “Company”) with the Securities and Exchange Commission (the “SEC”) on June 18, 2020. Please read the complete proxy statement and accompanying mate