Christopher B. Begley.

• Author: Rand, A. Barry
• Position: Manage Your Assets

Christopher B. Begley

Chief Executive Officer Hospira, Inc.

For us at Hospira, a recently launched public company, increasing cash flow is a key focus. After all, the greater the cash, the greater our financial flexibility will be in the future. Spun off from Abbott Laboratories, our business--which includes specialty pharmaceuticals (generic injectable drugs) and medication management systems--was historically underinvested from an R & D and commercial standpoint. To that end, our company's vision of "Advancing Wellness" requires us to also advance the wellness of our new corporation by creating a culture of financial fitness. Backed by $2.5 billion in worldwide sales, we need to increase our cash flow to retire debt, invest for growth and, ultimately, return it to shareholders.

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So, how are we generating cash in our first few months of business? 1) Strategically: provide an incentive. We gave our U.S. employees a one-time "founders" stock option to maximize the alignment of their interests with those of our shareholders; we also continue to educate the employee base on the importance of cash generation. 2) Operationally...