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The
funds, along with Netherlands-based pension fund PGGM, said they
control 4.3 million shares of the company and are urging
shareholders to vote against the company at Mylan's June 22
annual meeting.
In a May 30 letter released on Wednesday in a regulatory filing,
the funds said Coury's compensation in 2016 totalled $160
million including vesting and other payments, and came despite
the company's price hiking scandal around its emergency allergy
treatment EpiPen and share decline.
The company has been the subject of federal and state
investigations and agreed last fall to pay $465 million to
settle U.S. Justice Department allegations that it overcharged
the government for EpiPen.
The letter noted the decline in Mylan shares, which now trade
for around $40, less than half the $82 that rival Teva
Pharmaceuticals had offered to buy the company for in April of
2015.
"All of the mudslinging back-and-forth between Mylan and Teva
only served to reinforce our concern that Chairman Coury would
rather keep his pay and power at Mylan’s helm than likely lose
those benefits to Teva cost- and position-cutting," the
investors wrote.
Mylan said in a statement that Coury’s compensation "was granted
and earned over his 15-year tenure as CEO and then Executive
Chairman or directly relates to his retirement as an executive
in 2016 and transition to Non-Executive Chairman." The company
said that its compensatin is designed to drive execution against
its strategy and is aligned with performance and long-term
shareholder value.
Regarding its overall performance, the company said "despite
industry-wide headwinds in 2016, including volatility and
valuation contraction in the generic and specialty
pharmaceutical industry, Mylan delivered strong financial and
operational results for the year, and outperformed many of its
peers."
(Reporting by Caroline Humer; Editing by Chizu Nomiyama)
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