Investors are being told to go scorched earth on the company that makes EpiPen (MYL)

pulse

June 12, 2017 7:27 PM

Shareholder advocacy groups are telling Mylan investors to show no mercy with the board at an upcoming shareholder meeting.

Mylan NL CEO Heather Bresch waits to testify before a House Oversight and Government Reform Committee hearing on the Rising Price of EpiPens, at the Capitol in Washington, U.S. September 21, 2016.

On Monday Institutional Shareholder Services (ISS) released a report recommending shareholders vote against 10 of Mylan's 11 current board members, including CEO Heather Bresch.

"Because Mylan’s Board has determined that risk oversight is the responsibility of the full board, all incumbent directors should be considered accountable for material failures of risk oversight over a number of years, when warning signs were available to the company but no actions appear to have been taken to mitigate or head off the significant potential risks that have since materialized. Votes against all incumbent directors are considered warranted," the report said.

Bresch has presided over a disaster. Since Mylan bought EpiPen in 2007, the company raised the price of the life saving anti-allergy medication over 500%. Consumers took notice and took the company to task. Bresch was forced to testify before Congress, and the company's stock price has plunged nearly 13% over the past year. Through all that, the price of an EpiPen has not been lowered one cent.

That is, in part, because the price of EpiPen is tied to Mylan's stock performance, and Mylan's stock performance is tied to executive compensation. ISS is also recommending that shareholders vote against Mylan's compensation program.

In agreement with ISS are big shareholders like t

CAudit Committee Chair Neil Dimick , and Compliance Committee Chair Mark Parrish.

Do what you gotta do, guys.

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