McKesson Loaned Execs Funds to Buy Shares

Executives at McKesson HBOC Inc. borrowed almost $100 million to buy company stock, only to see the shares lose about half their value after the disclosure of accounting improprieties at the largest U.S. drug wholesaler. The borrowers include former Chief Executive Mark Pulido, who owed McKesson $17.8 million as of June 30, according to a proxy statement filed with the Securities and Exchange Commission. Albert Bergonzi, who was fired as head of McKesson’s HBOC software unit in June, owed the company $6.45 million. Both executives left after accounting questions about the software unit forced McKesson to restate earnings and sparked a sell-off in company shares. In a break from customary corporate practice, McKesson won’t forgive any of the loans--even those held by departed officers such as Pulido. San Francisco-based McKesson earlier this week slashed $327 million of revenue for the last three fiscal years to adjust for accounting improprieties at HBOC. Company shares have fallen 51% since April, when McKesson announced it would restate earnings. On Friday, they rose 88 cents to close at $32.25 on the New York Stock Exchange.