Reject Cardinal Health CEO’s bonus, state treasurers urge, citing opioid settlement

Maia Anderson –
Tuesday, October 20th, 2020

2 state treasurers are urging Cardinal Health shareholders to vote versus a $2.5 million reward for CEO Michael Kaufmann, arguing that such a payment overlooks the companys history in allegedly contributing to the opioid crisis..

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The treasurers argue that giving Mr. Kaufmann such a large bonus offer would “run the risk of long-lasting shareholder worth and have extensive long-term ramifications for our economy and society.”.

Mr. Kaufmann has been with Cardinal for 27 years, formerly leading the pharmaceutical circulation company from 2009 to 2014, according to STAT..

” Despite firmly insisting that its payment programs hold employees responsible for the companys results and values, the opioid charge is inexplicably swept under the rug when it comes to calculating executive bonus awards,” they composed in the filing..

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Seth Magaziner, Rhode Islands treasurer, and Shawn Wooden, Connecticuts treasurer, wrote in a filing with the U.S Securities and Exchange Commission that Cardinal “appears to have persistently failed” to guarantee safe and safe distribution of illegal drugs.

Read the full statement from the treasurers here.

A Cardinal Health spokesperson informed STAT that at the 2019 annual investors conference, the bonus received support from shareholders with 94 percent of business shares..

They said that Cardinals payment towards an international opioid settlement removed half a yearss worth of revenues and drove the company to a $3.7 billion loss, its biggest ever..

Cardinal likewise launched a proxy statement saying that Mr. Kaufmann was rewarded for various objectives, consisting of progress made in Our Path Forward, a set of culture initiatives Cardinal set in 2015. The business stated Mr. Kaufmann just recently formed a Cabinet of African American leaders within the company to assist educate senior leaders on racial equity concerns and advise the business..

” The result was that neighborhoods across our nation were flooded with highly addictive prescription pain relievers that under no sensible estimation could have been construed to represent legitimate demand,” they wrote..

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