McKesson’s Chairman and CEO John Hammergren has set a new record in corporate America: Largest pension around.
The drug distribution company disclosed in a regulatory filing Friday that Hammergren was entitled to a $159 million lump-sum payment for his pension. The size of his pension was first reported by the Wall Street Journal on Tuesday.
Several compensation consultants say it is by far the largest pension for a current executive of a public company. For CEOs of companies in the Standard & Poor’s 500 index that award pensions, the average benefit is about $7 million. That’s according to GMI Ratings, which tracks executive pay.
San Francisco-based McKesson says the pension was shaped by an employment agreement put in place more than 14 years ago, combined with outstanding company performance.