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Lloydspharmacy withholds annual bonus plan after 'difficult' year

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McKesson UK: Discretionary payments have been awarded as a gesture of appreciation
McKesson UK: Discretionary payments have been awarded as a gesture of appreciation

Lloydspharmacy’s parent company McKesson UK will not pay out its annual bonus plan this month, citing a “challenging” financial year.

While the multiple saw “increased sales year-on-year”, it was “adversely affected by external factors, chief among them being the impact of the NHS drug tariff”, McKesson UK CEO Toby Anderson told employees in a letter, seen by C+D.

“This directly affected our adjusted operating profit, which is the key measure of our annual bonus scheme,” Mr Anderson explained.

“We also missed some opportunities to be operationally excellent,” he added. “As a result of not achieving our target last year, the annual bonus plan for 2018-19 will not be paid out in July.”

Discretionary payments unaffected

However, discretionary payments – which are paid to individual store-based pharmacists, pharmacy managers and other members of the pharmacy team as a “gesture” of the company’s “appreciation” – will be unaffected, he said.

In the example seen by C+D, this was £250, which Mr Anderson described as a “thank you for your ongoing commitment to McKesson”.

One of Mr Anderson’s “key focuses” is to “embed a true performance culture” across McKesson UK, he said, adding that for the second half of the financial year it would be launching a “new bonus scheme that aims to better align reward to performance”.

“Much of the organisation” impacted

McKesson told C+D yesterday (July 25) that “much of the organisation, including pharmacists and pharmacy managers” will not receive their bonus as expected.

“It has been a challenging year for community pharmacy, but our colleagues are all focused on delivering innovation and efficiency to counter the external factors that affect us, and to maximise our profitability for the year ahead and beyond,” the company said.

In its latest financial report, McKesson UK revealed that adjusted operating profit for its European pharmaceutical solutions division – which includes Lloydspharmacy – was $219m (£168m) in 2018-19, a 36% drop compared with the previous year.

18 Comments
Question: 
Did you receive a bonus this year?

Adam Hall, Community pharmacist

'Bonus - An unsought or unexpected extra benefit' 

Ronald Trump, Pharmaceutical Adviser

So McKesson made £168 million profit 18/19 & theyre still not paying out the bonus? Actually, I'm not suprised.

 

Ranjeev Patel, Non Pharmacist Branch Manager

They will be paying bonuses, just not to the suckers at the bottom of the food chain.

Michael Lord, Community pharmacist

Many of their stores are accidents waiting to happen, more staff will now leave and exacerbate the problem. God help them!

Ranjeev Patel, Non Pharmacist Branch Manager

Lloyds are the best company in the world. They treat their staff really well and give them a lot of respect. Who wouldn't want to work for such a generous company? Thery certainly don't speak down to you and continously flog you to produce the impossible.

Honest Pharmacist, Community pharmacist

Are you serious!?! I don’t know where you work but you must’ve been paid to write that! You should ask some of the stores where staff are continuously walking out due to the horrendous working conditions imposed by Lloyds. Your comment is definitely NOT a true reflection of working at Lloyds Pharmacy!

Lucky Ex-Locum, Superintendent Pharmacist

Get with the program.....it's called humour.

Ranjeev Patel, Non Pharmacist Branch Manager

It was sarcasm mate. 

Interleukin -2, Community pharmacist

....it worked 

Ronald Trump, Pharmaceutical Adviser

Please choose your words more carefully Mr Patel- suicide is no joke.

Lucky Ex-Locum, Superintendent Pharmacist

Ye Gods!! Has Pharmacy had a total sense of humour-ectomy?? It seems so reading the replies to what was blatantly obviously a sarcastic post. Lloyds are total rubbish. Everyone knows that!

The One Horseman of the Apothecalypse, Community pharmacist

I got it!

Celebrating the 20th anniversary of the last time I made the mistake of working for Lloyds...

Honest Pharmacist, Community pharmacist

Me too! ;)

Lucky Ex-Locum, Superintendent Pharmacist

Hah - me three! There's a theme developing here - Lloyds went totally rubbish when Allen Lloyd sold out to GEHE and corporate idiots got involved.

Pharmacist Pharmacist, Community pharmacist

Instead of paying the hardworking teams on the front line, the management will most likely line their own pockets with the £168m,I wonder how much bonus the MD and the top officials will be getting

Beta Blocker, Primary care pharmacist

Exactly...

Ben Merriman, Community pharmacist

At least they're not paying out then taking it back this time...

Disgruntled Manager, Community pharmacist

Yet...

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