SAN FRANCISCO — McKesson Corp. announced that John Hammergren, chairman and chief executive officer, has decided to retire, effective March 31, 2019. McKesson’s board of directors has unanimously selected Brian Tyler, currently president and chief operating officer, to succeed Hammergren as CEO, effective April 1, 2019. Tyler will also remain as president.
Edward Mueller, currently lead independent director on McKesson’s board of directors, will succeed Hammergren as an independent chairman of the board, also effective April 1, 2019.
“It has been an honor to serve as McKesson’s CEO for nearly 20 years,” Hammergren said. “We are making solid progress with our strategic growth initiative and the company is in a strong financial position. This is the right time to turn the leadership reins over to the next generation and no one is better equipped than Brian to lead McKesson into the future. He is a gifted leader with deep industry knowledge and an unwavering commitment to enhancing value for our customers and their patients.”
Under Hammergren’s leadership, McKesson has become the leading provider of healthcare services and information technology solutions that help organizations across the healthcare industry improve their business performance and deliver better care. In the time since he became CEO on April 1, 2001, the company has more than quadrupled revenues to $208 billion, expanded into global markets, and advanced to number six on the Fortune 500, reflecting total shareholder returns of more than 400% or 9% on a compound annual basis (as of October 31, 2018). These results reflect significant outperformance compared to the S&P 500 Health Care Index.
Hammergren took over the company at a time of crisis and created its ICARE shared principles, which serve as the foundation for McKesson’s culture and values across the globe. Recognizing his tremendous track record of success, Harvard Business Review named Hammergren as one of their 100 “Top Performing CEOs in the World.”
“There are few leaders who have had such an impact on a company and on an entire industry,” said Mueller. “Over nearly two decades, John has built one of the greatest organizations in healthcare — a company that has had a far-reaching, positive impact on patient care in every setting. On behalf of McKesson’s entire Board, I want to thank John for his countless contributions and tremendous leadership since assuming the CEO role.”
Currently president and COO of McKesson, Tyler is a 21-year McKesson veteran. He has led nearly every major business within the company as well as McKesson’s corporate strategy and business development unit.
“Brian is the ideal leader to guide McKesson through the next era,” said Mueller. “Having spent his entire career in health care, he has a strong point of view on the future of the industry, both in the U.S. and globally, as well as how McKesson will continue to play an integral role in improving care while driving value for McKesson’s shareholders.”
Mueller, currently lead independent director on McKesson’s board of directors, will provide strong leadership continuity for McKesson as chairman of the company’s board of directors. He has been a director of McKesson since April 2008 and has served as the lead independent director since July 2013.
“Ed Mueller will be a terrific chairman of our board of directors,” said Hammergren. “During his 10 years of service on our Board, Ed has developed a deep knowledge of McKesson and our industry. He has the respect of our board, McKesson’s leaders and our investors.”
The entire board will work closely with Hammergren, Tyler and Mueller over the coming months to ensure a smooth transition. Hammergren will remain chairman of the board for Change Healthcare and will continue to support McKesson in an advisory capacity after his retirement.