WOONSOCKET – Thomas M. Ryan, chairman, president and CEO of CVS Caremark Corp., received nearly double the amount of compensation earned by the leaders of CVS’ two closest competitors in the pharmacy-benefit management (PBM) business, Drug Benefit News reported this week.
Ryan received $24.1 million in total compensation in 2008, according to proxy statements and annual filings with the Securities and Exchange Commission that Drug Benefit News reviewed to compile its annual compensation rankings. That included $110,854 for personal use of CVS Caremark’s corporate jet and $5,798 for home security.
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Ryan’s compensation far outpaced the $13.1 million received by David Snow, chairman and CEO of Medco Health Solutions Inc., and the $12.8 million received by George Paz, chairman, president and CEO of Express Scripts Inc.
Ryan’s pay actually fell 7.6 percent in 2008 compared with the year before because CVS failed to achieve certain benchmarks set by its board, Drug Benefit News reported. Snow’s earnings increased 24 percent in 2008 and Paz’s rose 60 percent.
However, Ryan also led a much larger company than his two PBM competitors. CVS Caremark’s annual revenue totaled more than $87 billion in 2008, compared with Medco’s total annual sales of $44 billion and Express Scripts’ total of slightly less than $22 billion.
When setting compensation rates, CVS Caremark says it compares its performance to both retailers, including Target Corp. and Walgreen Co., and health care firms like Medco and Aetna Inc., according to the filings.
Ryan, a University of Rhode Island graduate who has worked for CVS for more than three decades, has been the company’s CEO since 1998. URI’s Ryan Center is named after him.
Drug Benefit News is a biweekly subscription newsletter published by Washington, D.C.-based Atlantic Information Services Inc.
