WOONSOCKET – CVS Health Corp. CEO Karen Lynch’s total compensation increased 5% in 2022, despite a one-time bonus reduction after the company agreed to pay $5 billion over 10 years to settle a multistate opioid settlement in December, according to a company proxy statement released April 7.
Lynch received $21.3 million in 2022, a 5% increase from $20.3 million in 2021. Her base salary was $1.5 million in 2022, a 3% increase from 2021, with stock awards of $12.3 million, $4.1 million in stock award options, $2.9 million in nonequity pay and $354,625 in other compensation.
Let’s Save Big with Rhode Island Energy Efficiency Programs
Nestled alongside the Blackstone River in Pawtucket, RI, in a historic National Heritage Corridor that…
Learn More
However, Lynch’s nonequity compensation fell 54.5%, from $5.6 million in 2021, even though she was not CEO during the years the company was accused of fueling the nation’s opioid crisis. After the company consulted with its shareholders, Lynch, along with the board’s management planning and development committee and company’s board of directors, agreed to reductions in nonequity incentives, according to the proxy statement.
Lynch assumed the role as CVS’ top executive after Larry J. Merlo – who became CEO and president of CVS a decade ago – retired from the pharmaceutical conglomerate on Feb. 1, 2021.
Lynch’s total compensation was 380 times more than the median fulltime CVS employee’s yearly pay of $56,100 including benefits.
On Dec. 12, CVS Corp. and Walgreens agreed to pay state and local governments a combined total of more than $10 billion to settle lawsuits over the toll of opioids with 18 states.
The CVS payments could reach $4.9 billion over 10 years. Additionally, the companies have announced tentative payments to Native American tribes totaling more than $250 million.
In 2022 CVS reported a $4.1 billion profit, a 3.7% decline from $7.8 billion in 2021. However, revenue increased to $322.5 billion, up 10.4% compared to prior year.
On March 30, CVS completed its $8 billion acquisition of home-health provider Signify Health. Under the agreement CVS will pay $30.50 in cash per each outstanding Signify share, representing a total transaction value of approximately $8 billion.
CVS will report 2023 first quarter earnings on May 3.
(Material from The Associated Press was used in this report.)
