EpiPen maker faces revolt over exec’s $98 million pay package – CNNMoney

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EpiPen maker Mylan is racing to put down a revolt from shareholders outraged by a $98 million pay package for its former CEO.

Institutional Shareholder Services, a shareholder advisory firm, took the rare step of urging investors to oust all of Mylan’s existing directors.

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ISS chastised the Mylan board for “multiple egregious pay decisions” and a failure to heed “warning signs” ahead of last summer’s scandal over EpiPen pricing.

Mylan (MYL) was already under fire for a relentless series of price hikes on a two-pack of EpiPens by 400% over seven years. The controversy badly damaged Mylan’s reputation and wiped out billions of dollars of market value.

Yet Mylan still lavished former CEO Robert Coury with $98 million in pay for 2016 as he transitioned to the role of executive chairman.

In a report published on Monday, ISS criticized the “outsized compensation” in the face of “harm to the company inflicted by the EpiPen controversies” and “steep shareholder losses.”

Glass Lewis, another advisory firm, put out a separate report on Friday slamming Coury’s “colossal pay package” and giving Mylan an “F” for its compensation decisions.

Both firms urged Mylan shareholders to vote against the nonbinding “say-on-pay” proposal at the company’s June 22 annual meeting. Mylan’s pay practices were unpopular even before the EpiPen scandal. The say-on-pay proposal only received 65.2% of support last year.

ISS and Glass Lewis also recommended ousting Mylan directors Wendy Cameron, Neil Dimick and Mark Parish, all of whom sit on the compensation committee that approves executive pay.

ISS is going a step further by saying all 10 of Mylan’s existing directors should be voted out, including CEO Heather Bresch. The Mylan boss caught flak last summer by trying to pin the blame for the EpiPen sticker shock on a shadowy health care supply chain rather than accept responsibility.

In particular, ISS chastised Mylan’s board for failing to “head off the negative scrutiny” over the company’s risky price strategy “despite significant warning signs over a number of years.”

For instance, two years before the EpiPen scandal there was Congressional inquiry linked to generic drug price increases.

The EpiPen controversy “has laid bare a record of poor stewardship and responsiveness” by Mylan’s board,” ISS said.

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