In the latest response to the opioid crisis, more than half of Rite Aid (RAD) shareholders voted to require the board of the pharmacy chain to report on how the addictive painkillers are monitored, and how the company is managing related financial and reputational risks.
Specifically, 57 percent of shareholders supported the resolution, which also called for the Rite Aid board to describe senior executive compensation metrics or policies. The resolution was introduced by the UAW Retiree Benefits Trust, a member of Investors for Opioid Accountability, a coalition of institutional investors that has been pushing wholesalers and pharmacies to take steps to reign in the opioid crisis.
For instance, the International Brotherhood of Teamsters and a Rhode Island state pension fund, which are also coalition members, are pushing Cardinal Health (CAH) to overhaul the way executive pay is calculated in order to reflect the potential cost of any settlements or fines for errant opioid shipments. Two other members — the New York state comptroller and the Connecticut treasurer — last March succeeded in pushing McKesson (MCK) to issue a report on opioid monitoring.
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