CVS Health’s 2022 regulatory filings indicate that CEO Karen Lynch earned $21.3 million in total compensation, while the top five earners in the company collectively received significant compensation packages. While such packages indicate the executives’ importance to the company, they also highlight concerns regarding executive pay and income inequality. The company has undertaken measures to address such concerns, including expanding employee benefits and ensuring that all staff earn at least $15 per hour.
CVS Health, a leading pharmacy and healthcare company, has released its regulatory filings for the year 2022, detailing the compensation received by its top executives. The filings reveal that Karen Lynch, the current President, and CEO of CVS Health, was the highest-paid executive, earning total compensation of $21.3 million.
Lynch’s compensation package included a salary of $1.5 million, stock awards worth $12.4 million, option awards of $4.1 million, and a non-equity incentive plan of $3 million. She also received other compensation worth $354,625. Lynch took over as the CEO of CVS Health in February 2021, succeeding Larry Merlo, who retired after a 10-year stint at the company.
The second-highest earner on the list was Shawn Guertin, the CFO of CVS Health. Guertin received a total compensation of $14.6 million, which included a salary of $1.25 million, stock awards worth $7.5 million, option awards of $2.5 million, and a non-equity incentive plan of $3.3 million. He also received other compensation worth $110,772.
Tilak Mandadi, Chief Data, Digital, and Technology Officer of CVS Health, was the third-highest earner, receiving a total compensation of $14 million. Mandadi’s compensation package included a salary of $437,500, a bonus of $2.8 million, stock awards worth $9.8 million, and a non-equity incentive plan of $981,000.
Alan Lotvin, the former President of Pharmacy Services at CVS Health, received a total compensation of $11 million. Lotvin’s compensation package included a salary of $1 million, stock awards worth $5.6 million, option awards of $1.9 million, and a non-equity incentive plan of $2.2 million. He also received other compensation worth $241,807.
Prem Shah, the Chief Pharmacy Officer and Co-President of Retail Services at CVS Health was the fifth-highest earner, receiving a total compensation of $9 million. Shah’s compensation package included a salary of $916,667, stock awards worth $5 million, option awards of $1 million, and a non-equity incentive plan of $1.9 million. He also received other compensation worth $149,732.
The regulatory filings provide insight into the compensation practices at CVS Health and highlight the significant amounts earned by its top executives. The compensation packages reflect the importance of the executives’ roles in driving the company’s success and growth.
However, the large compensation packages also raise questions about executive pay and income inequality. Some stakeholders may argue that the executives’ compensation is excessive, especially when compared to the salaries of lower-level employees. This can lead to concerns about fairness and equity within the company and the broader society.
In response to these concerns, CVS Health has implemented several initiatives aimed at promoting equity and fairness. The company has committed to paying all its employees at least $15 per hour, which is above the federal minimum wage. It has also expanded its employee benefits program, offering paid parental leave, adoption assistance, and other benefits.
Overall, the regulatory filings show that CVS Health’s top executives received significant compensation packages in 2022. While these packages reflect the executives’ importance to the company’s success, they also highlight the need for companies to address concerns about fairness and equity in executive pay.
