As the number of lawsuits over the opioid crisis mounts, Cardinal Health (CAH) is being pushed by members of an investor coalition to overhaul the way executive pay is calculated in order to reflect the potential cost of any settlements or fines.
In a recently filed shareholder proposal, the International Brotherhood of Teamsters and a Rhode Island state pension fund argue the wholesaler should change its approach to tallying profits over concerns any possible payments will be substantial, and that Cardinal executives should bear some of the costs. To add more pressure, a letter is being sent to shareholder this week in advance of an annual shareholder meeting scheduled for Nov. 7.
“I don’t believe that senior executives at Cardinal Health should be insulated from their company’s legal risks,” said Rhode Island General Treasurer Seth Magaziner, in a statement. His office oversees a state employee retirement fund that holds Cardinal stock, and is also a member of Investors for Opioid Accountability, which includes about 40 public, private, and faith-based asset managers.
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