Report: Walgreens executives pressured to leave

August 25, 2014

Walgreens CFO Wade Miquelon and pharmacy head Kermit Crawford may have been forced to step aside due to a billion-dollar forecasting error, according to a report in the Wall Street Journal.

Walgreens CFO Wade Miquelon and pharmacy head Kermit Crawford may have been forced to step aside due to a billion-dollar forecasting error, according to a report in the Wall Street Journal (WSJ).

Miquelon was replaced earlier this month by Timothy McLevish, formerly the CFO of Kraft Foods Group. In July, Crawford announced his retirement as the chain’s president of pharmacy, health, and wellness.

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The WSJ report indicates both may have been pressured to leave Walgreens. According to the report, Miquelon had forecasted $8.5 billion in pharmacy earnings in 2016. He later revised that forecast to $7.4 billion, as his original forecast did not account for price changes for some generics.

 

Published reports indicate both Miquelon and Crawford were given generous severance packages.

Miquelon will receive $3.2 million in severance, a bonus of about $1.2 million, plus shares and stock options worth about $4.1 million, according to Crain’s Chicago. The publication said Crawford would receive a severance payment of $3.3 million, equity totaling $7.2 million, and $1.5 million for one year of consulting following his December retirement.