In a damning report, a major shareholder advisory firm is recommending that Mylan stockholders vote to remove 10 incumbent board members — including non-executive chairman Robert Coury and chief executive officer Heather Bresch — over the EpiPen pricing scandal and subsequent investigations. The company holds its annual meeting on June 22.
In explaining its recommendations, Institutional Shareholder Services argued the Mylan board is responsible for “significant destruction” in shareholder value and “material failures” over a number of years to respond to “warning signs,” but failed to take action to mitigate or head off the risks. As a result, the company also suffered “long-term reputational damage.”
ISS went on to accuse the board of “multiple egregious pay decisions” and making “large payouts,” and singled out Coury. The firm complained that he received “outsized compensation,” including a $43.6 million “front-loaded equity award” for his role as non-executive chairman through 2021. And ISS also lamented incentives that were given to executives increased amid “steep shareholder losses.”
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