McKesson CEO and CFO resign as board fires ITB executives
McKesson CEO and CFO resign as board fires ITB executives
By KAREN PIHL-CAREY
HHBR Staff Writer
McKesson HBOC’s (San Francisco) two top men resigned last week as the board dismissed several executives in an effort to gain stronger leadership and eliminate those involved in accounting improprieties.
The company issued a statement June 21 that said the following people have left or will be leaving their positions: President/CEO Mark Pulido; Executive Vice President/CFO Richard Hawkins; and four executives heading the Information Technology Business (ITB) unit, ITB President/CEO Albert Bergonzi, Controller/CFO David Held, Senior Vice President/General Counsel Jay Lapine, and Senior Vice President Michael Smeraski.
Company spokesman Larry Kurtz said Pulido and Hawkins were not forced out by the board because of the accounting improprieties. "I think they resigned because the entire situation occurred while they held their offices," he told HHBR. "So the merger and what happened after the merger, it occurred on what we’re calling under their watch, and therefore, they chose to resign, given their roles." Kurtz said neither Pulido nor Hawkins have another job lined up.
Director Alan Seelenfreund, a McKesson CEO from 1989 to 1997, said the changes were needed to move the company forward. At the same time as the dismissals, Seelenfreund was appointed non-executive chairman of the board, replacing Charles McCall, who also was fired.
The company has appointed John Hammergren and David Mahoney as co-CEOs and directors of the company. Hammergren was previously the executive vice president of the company and president/CEO of the Supply Management Business. Mahoney was formerly executive vice president of the company and president/CEO of the Pharmaceutical Services Business. In their new positions, Hammergren will focus on the company’s core supply management and ITB, while Mahoney focuses on financial, strategic, and other functions. Heidi Yodowitz, senior vice president and controller, has been named acting CFO of the company.
Pulido and Hawkins will leave their positions, including Pulido’s position as a director, on July 15. They both agreed to help with the transition to the new management team. The board has also established a committee of independent directors, including Seelenfreund, to work with the new team.
The McKesson board appointed Graham King as president of the ITB unit. The other three positions will be filled soon, Kurtz told HHBR.
"The changes to the board chairmanship and ITB senior management arose out of the audit committee review process and after thorough consideration by the outside directors of the company," Seelenfreund said. "Because of the nature of accounting improprieties that we have found at the old HBO & Co., which is now our ITB unit, and the participation of senior level employees of this business in such improprieties, we felt compelled to take prompt and decisive action."
King, who will report to Hammergren, held the position of group president of the outsourcing services group and connect technology group at the ITB unit.
In late April, the audit review process uncovered problems with financial reporting at the ITB unit. Since announcement of the improprieties, stock has fallen more than 50%, and about 40 lawsuits have been filed against the company. The most recent lawsuit was filed Friday by a New York-based pension fund group, which lost more than $250 million.
McKesson expects to restate its results and file its annual report with the SEC (Washington) shortly after June 30.
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.