Nation & World
Walgreen’s replacing top financial officer
Walgreen’s top financial officer is leaving the nation’s largest drugstore chain as it nears a key decision about its future that could involve a politically touchy overseas reorganization. Walgreen says it will replace Wade Miquelon with former Kraft Foods executive Timothy McLevish as executive vice president and chief financial officer, effective immediately. Miquelon had served as a senior leader in the drugstore chain’s collaboration with Swiss health and beauty retailer Alliance Boots. Walgreen Co. bought a 45 percent stake in Alliance Boots a few years ago and will announce soon whether it plans to buy the rest. It also is considering an overseas combination called an inversion that could reduce its corporate tax bill. This type of corporate move is raising concerns in Washington over possible lost tax revenue.
McDonald’s: China scandal hurting sales
McDonald’s said Monday that a scandal over a meat supplier in China is hurting sales in the region and its global sales forecast for 2014 is “at risk.” The world’s biggest hamburger chain said in a regulatory filing that there’s been “significant negative impact” in China, Japan and other affected markets after a Chinese TV report last month showed workers at one of McDonald’s meat suppliers in Shanghai using expired meat. These regions make up about 10 percent of McDonald’s Corp.’s revenue. The Illinois-based company had previously said it expected the worldwide sales measure to be “relatively flat” for the year.
Homeowners overcharged on insurance?
New York’s top financial regulator is investigating whether the nation’s largest overseer of troubled mortgages, Ocwen Financial Corp., is overcharging struggling homeowners on insurance. In a letter Monday, New York Financial Superintendent Benjamin Lawsky said Ocwen created complex business arrangements to funnel as much as $65 million to Altisource Portfolio Solutions S.A. That company is led by former Ocwen executives and is partially owned by Ocwen’s executive chairman, William Erbey. Lawsky said the extra expense of policies imposed by Ocwen “can push already struggling families over the foreclosure cliff.”
LinkedIn to pay for labor violations
Professional networking service LinkedIn has agreed to pay nearly $6 million in unpaid wages and damages to 359 current and former employees, the Labor Department said on Monday. The U.S. Department of Labor said an investigation found LinkedIn Corp. in violation of overtime and record-keeping rules that are part of the federal Fair Labor Standards Act. It said the violations occurred at company branches in California, Illinois, Nebraska and New York. California-based LinkedIn said in a statement that it was “eager to work closely with the (Labor Department) to quickly and equitably rectify this situation. This was a function of not having the right tools in place for a small subset of our sales force to track hours properly; prior to the (Labor Department) approaching us, we had already begun to remedy this.” The company agreed to pay the back wages once it was notified of the violations and to take steps to prevent them from happening again.
The Associated Press contributed.