Correction: Express Scripts CEO Compensation story
NEW YORK—In an April 2 story about compensation received by Express Scripts Inc.'s chief executive, George Paz, The Associated Press reported erroneously the amount of his 2007 compensation.
Paz received total compensation valued at $11.6 million, not $10.2 million, representing an increase of 88 percent, not 66 percent.
The story also misstated the value of stock options and restricted stock received by Paz in 2007. It was just over $8.4 million, not just under $7.1 million.
A corrected version appears below:
NEW YORK (AP) -- Express Scripts Inc. Chief Executive George Paz received an 88 percent boost in compensation in 2007, as the pharmacy benefits manager reaped the rewards from generic versions of blockbuster drugs.
In a Securities and Exchange Commission filing Tuesday, the company reported total compensation for Paz at $11.6 million, up from $6.1 million a year prior.
In 2007, Paz received a base salary of $882,308, incentives of about $2.1 million, and other compensation of $114,732, mostly consisting of company credit contributions.
The bulk of his compensation came from stock options and restricted stock valued at just over $8.4 million the day they were granted.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals listed in the summary compensation table in the company's proxy filed with the Securities and Exchange Commission.
In 2007, the industry benefited from the sooner-than-expected entrance into the market of generic versions of branded drugs that had annual sales in the billions of dollars. Express Scripts' profit rose 20 percent to $567.8 million during the year, while revenue rose 4 percent to $18.27 billion.
Wall Street has said the company and its rivals are well-positioned to continue taking advantage of generic drug developers increasing challenges to lucrative drug patents.
