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The richest executive you may have never heard of until now

The cost of health care has many components.  Executive pay is one of them. No, not just in hospital executives compensation, but also in the supply chain. This occurs in multi-national corporations that serve Canada, but are not headquartered in Canada. 

One of these huge companies is the 15th largest company in the United States, McKesson, which is a very old company with world wide reach.   They have a division called McKesson Canada

Another question arises.  How much does the CEO of McKesson in the US get paid?

His name is John Hammergren and his compensation last year was $145,000,000 as he cashed in some of the stock options due him.  He did well in other years too as the table below shows.

The $46 million in 2011 is really $46,149,360.00.  So would you like the round off?

In the 13 years he has been running McKesson, he has made more than 500 million.  These figures are all on file with the US Securities and Exchange Commission.  If you had invested in the company in the year he joined, you would be slightly ahead.  In that time period the cost of health care systems, supplies, pharmaceuticals and the like have gone up and up and up.

In addition to all this money, he gets perks like  $13 million contributed to his retirement account.  He has a chauffer and rights to the corporate jet for his own private use.  Does he have private time?

What has he done to deserve this compensation?  He's 52 and he has spent his life in health care companies.  When he came to McKesson, there was an accounting scandal and he cleaned that up evidently.  He remains and who would not with that type of compensation.

Prior to joining McKesson, Hammergren led the Medical-Surgical division of Kendall health care Products Company, and held a series of general management positions at Baxter health care Corporation/American Hospital Supply Corporation and Fujisawa health care between 1981 and 1991.

Hammergren earned his bachelor's in Business Administration from the University of Minnesota, and his master's from Xavier University in Cincinnati.

He has not cured cancer.

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Wednesday, January 04, 2012