Medco CEO Compensation Worth $ 14.3 in 2008

 

Thursday, Apr 09,2009, 11:13:46 AM   Click:

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NEW YORK_The president and CEO of pharmacy benefits manager Medco Health Solutions Inc. has received compensation of $ 14.3 million in 2008, an increase of 2 percent the previous year, according to the Associated Press analysis figures from a regulatory filing.

David Snow Jr., chairman and CEO of Franklin Lakes, NJ, the company has a salary of $ 1.3 million, up less than 1 percent a year ago. He received a cash bonus based on performance of 3 million compared to $ 2.6 million in 2007.

Fueled by rising low-cost, profitability of generic drugs and greater use of mail-order prescription filling, Medco earnings increased 21 percent in 2008 to 1.1 billion, or $ 2.13 $ per share. Its revenue rose 15 percent, to $ 51.26 billion.

However, the stock fell as the global economic crisis worsened. Medco share lost 17 per cent at the end of the year to $ 41.91. The stock shed 36 cents to $ 42.34 in Tuesday morning trading.

The value of the snow and options to purchase shares on the date they were granted fell by about 2 percent, to $ 10 million from $ 10.2 million. However, Medco shares are currently worth less than the options' exercise price of $ 50.35 per share.

The stock last traded above $ 50.35 in mid-September.

Medco base wages and bonuses for its senior managers on average pay given by peers as Express Scripts Inc., CVS Caremark Corp., Aetna Inc. and others. The value of its long-term incentives is intended to be between the 50th and 75th percentiles of the incentives of these pairs.

Snow has received the "other" compensation valued at $ 50,000, an increase of about 15 percent a year ago. This compensation included $ 32,620 for the planning exercise and a company car and an allowance of $ 10,350 contribution to his 401 (k) savings plan. Smaller items included $ 5,000 of charitable donations spousal account and a $ 2036 life insurance premiums.

The Associated Press formula is designed to isolate the value of the company placed on the executive board of the total remuneration during the last fiscal year. It includes salary, bonus, performance-related bonuses, benefits, above market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations do not include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the importance of taking charge of the accounting of executive compensation last year.