CVS CEO's Total Pay Fell Last Year

CVS Health Corp. said the value of Chief Executive Larry J. Merlo's compensation fell roughly 11% last year as his bonuses declined amid a slump in traffic at the front end of its stores, despite solid sales of prescription drugs.

Mr. Merlo's overall compensation slipped to $28.9 million in 2015 from $32.4 million a year earlier. His incentive plan compensation was shaved by 15% to $9.7 million.

The so-called front end of stories—where CVS sells over-the-counter drugs, snacks, beauty products and other items—has been hurt by the company's decision to stop selling tobacco products. Recent acquisitions and strength in its pharmacy-services business have driven growth in recent quarters.

Mr. Merlo's pension value fell to $6.1 million from $8.1 million, while his base salary of $1.6 million last year was about 16% higher than a year earlier. The chief executive's stock and option awards remained essentially unchanged from 2014.

In February, the company reported a profit of $1.5 billion in the fourth quarter as revenue rose 11% to $41.15 billion. The company is expected to report results in May.

CVS's stock edged up 0.8% to $101.77 in recent trading in New York and was up 8.8% over the past three months.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

April 08, 2016 12:05 ET (16:05 GMT)

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