CVS Caremark CEO Merlo got 33% raise in 2011; earned $12M

By Ted Nesi

WOONSOCKET, R.I. (WPRI) – CVS Caremark CEO Larry Merlo’s pay package totaled $12 million in 2011, up a third from the $9 million he got in 2010 before formally taking the top job, the company said Thursday in an SEC filing.

Merlo, who lives in East Greenwich, succeeded Tom Ryan as the Woonsocket-based drugstore giant’s chief executive last March. His 2011 pay package included a $1.2 million salary; a $3.8 million bonus (formally known as “non-equity incentive plan compensation”); $6.8 million in stock and stock option awards; and $211,144 in “other compensation.”

Merlo’s other compensation was made up of $51,319 for personal use of CVS’s corporate jet; $13,225 for financial planning services; $883 for home security; $8,800 for the CVS Caremark Charity Classic; and $74,227 in additional retirement contributions.

Ryan, who lives in Narragansett, earned $3.4 million in his last months as chairman and CEO of CVS, including $546,154 in salary, $41,602 worth of corporate jet use and $442,552 to pay his executive assistant for his first five years of retirement. Ryan earned between $15.5 million and $124 million in 2010.

CVS also said it paid $4.6 million to Chief Financial Officer David Denton; $9.6 million to executive vice president Mark Cosby; $7.1 million to pharmacy-benefit management chief Per Lofberg; and $4.5 million to chief legal officer Douglas Sgarro, who is leaving the company by May 31.

(’s compensation estimates differ from some amounts reported in SEC filings because those add in yearly changes in the actuarial value of executives’ pensions; including that would increase the totals to $14.1 million for Merlo; $7.1 million for Lofberg; and $5.6 million for Sgarro.)

CVS Caremark, which finished 2011 on a high note, is Rhode Island’s largest private company and the state’s sixth-biggest employer. The company’s stock price rose 17% in 2011 and is up 10% this year.

• Related: Warren Buffett makes bigger bet on RI’s CVS with $290M stake (Feb. 16)

(photo: Ted Nesi/WPRI)

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