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Originally published Friday, March 12, 2010 at 11:56 AM

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Medco Health got compensation worth $13.3M in 2009

Pharmacy benefits manager Medco Health Solutions Inc. said even though its CEO took a 7 percent pay cut in 2009, he still received $13.3 million in total compensation, according to Associated Press calculation of figures filed with regulators.

AP Health Writer

NEW YORK —

Pharmacy benefits manager Medco Health Solutions Inc. said even though its CEO took a 7 percent pay cut in 2009, he still received $13.3 million in total compensation, according to Associated Press calculation of figures filed with regulators.

Medco said Wednesday that it paid David Snow $1.3 million in salary and a $3 million performance-based cash bonus. Both those totals were similar to 2008. But the Franklin Lakes, N.J., company awarded Snow $9 million in stock and options compared to $10 million a year earlier.

Snow was awarded the stock on Feb. 22. His shares have an exercise price of $40.58, far below Medco's Thursday closing price of $64.64.

His total compensation was $14.3 million in 2008. Snow, 55, has been Medco's CEO since March 2003, and the chairman of its board since June 2003.

The value of Snow's other compensation declined to $46,000 from $50,000. He received approximately $33,000 for financial planning and a car allowance, which was about equal to the previous year. Medco's matching contribution to his 401(k) savings plan increased to $11,000 from $10,000, and his life insurance premiums were unchanged at about $2,000.

However Snow also received a $5,000 spousal charity account a year earlier.

In 2009 Medco earned $1.28 billion, or $2.61 per share, on $59.8 billion in revenue. During the year its shares climbed 52.5 percent. They closed at $63.91 on Dec. 31.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

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