Woonsocket-based CVS Corp., the second-biggest U.S.
drug retailer by sales, increased Chief Executive Officer Thomas
Ryan’s compensation last year by 25 percent as he oversaw the
chain’s expansion and profit climbed.
The company paid Ryan $15.7 million last year in salary,
bonus, other compensation and stock, according to a filing at the
U.S. Securities and Exchange Commission. A year earlier the retailer paid Ryan $12.5 million.
Ryan acquired 1,260 Eckerd drug stores from J.C. Penney Co.
last year to bolster CVS’ presence in Florida and Texas. The
$2.15 billion purchase put CVS ahead of Walgreen Co. in number of
stores. Profit at CVS rose 8.4 percent to $918.8 million and
sales increased 15 percent to $30.6 billion.
Ryan’s salary remained at $1 million, while his bonus rose
$300,000 to $3.8 million. The category called other compensation
more than tripled to $5.68 million as the company paid $5.5
million to Ryan under an executive retention program.
Ryan, who also serves as CVS’ chairman and president,
received a $2.65 million restricted stock award. He also was
awarded 200,000 options for stock worth $2.45 million.
The company valued the options on their grant date using the
Black-Scholes pricing formula, a five-year term, a stock
volatility rate of 36.4 percent and a projected dividend yield of
0.75 percent. The company used a 3.3 percent risk-free rate of
return in the calculations.
Shares of CVS have risen 53
percent this year. Walgreen leads CVS in sales.
Bloomberg News
