CVS Caremark Chief's '08 Pay Dwarfs Compensation for CEOs of Rival PBMs, Drug Benefit News Reports

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AIS's Drug Benefit News analyzes PBM compensation data from company proxy statements

Atlantic Information Services, Inc. (AIS) --Thomas Ryan, chairman, president and CEO of CVS Caremark Corp., last year earned about double the pay of the leaders of CVS's two closest pharmacy benefit manager (PBM) competitors, according to an analysis of company proxy statements conducted by AIS's Drug Benefit News (DBN).

Ryan received $24.1 million in 2008 total annual compensation, DBN reported. In comparison, Medco Health Solutions, Inc. Chairman and CEO David Snow took home $13.1 million in total annual compensation, while Express Scripts, Inc. Chairman, President and CEO George Paz came away with $12.8 million. Details on both the cash and non-cash compensation appear in the July 3 issue of DBN. To access this story and more detailed data, go to

Ryan's compensation actually fell 7.6% from the 2007 level of $26.1 million, the publication noted. In a filing with the Securities and Exchange Commission (SEC), CVS Caremark said one factor was the company's failure to meet its operating profit goal -- the primary measure used to set executives' annual incentive payments. As a result, Ryan's non-equity incentive plan compensation fell from $7.8 million in 2007 to $4.6 million in 2008, according to DBN.

Medco allotted Snow a 24% increase in 2008 compensation over the prior year, driven primarily by hikes in stock-option awards and non-equity incentive plan compensation, DBN reported.

And Express Scripts almost tripled Paz's stock award in dollar terms, helping to drive total 2008 pay up 60% to $12.8 million compared with the level in the previous year, the DBN article noted. The PBM estimated that Paz's 2008 stock award was worth $6.7 million, compared with $2.6 million in 2007.

All compensation figures are based on data reported in the company proxy statements and 10-K forms filed with the SEC.

Go to to access detailed compensation data for top PBM executives.

Drug Benefit News is a biweekly subscription newsletter, published by Atlantic Information Services, Inc. (AIS), that offers timely news and data on the business of pharmaceuticals and unique information gathered in AIS's own surveys of HMOs and pharmacy benefit management companies. For more information visit


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