23 June 2017


While we are on the subject of immoral companies, Mylan Pharmaceuticals board was reelected, and the vote limiting executive compensation is almost certain to be ignored:
Mylan shareholders today did not unseat the drug maker’s board of directors, despite calls for an ouster over the EpiPen pricing scandals and remarkably large executive salaries.

In a vote during an annual meeting in Amsterdam, shareholders approved all incumbent nominees, including Chief Executive Heather Bresch, President Rajiv Malik, and Chairman Robert Coury, who earned a nearly $100 million salary last year amid intense backlash over EpiPen price hikes. The majority of shareholders did, however, reject such executive compensation plans—in a nonbinding vote.


However, analysts say the vote is unlikely to have any effect. Speaking to Bloomberg Markets, Ronny Gal, an analyst with Sanford C. Bernstein & Co., said: “There’s no way for this to be enforced.” He noted that, when shareholders have pushed back on salaries in the past, “Mylan’s position was that they need to educate shareholders more on the drivers of why they compensate management the way they do. I would be surprised if they pursue a different path here.” 
It should be noted that binding shareholder votes on compensation are illegal under US law.

This is something that needs to be changed, because control fraud is a staple of the MBA class of managers these days.

It needs to stop.


Post a Comment