Walgreen CEO compensation slips in fiscal 2012

Associated Press Published: November 19, 2012
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The companies had let a contract between them lapse at the end of last year, and their new agreement to do business didn't start until Sept. 15, or after the fiscal year had ended. In between, Walgreen's monthly sales totals slipped as Express Scripts clients filled their prescriptions elsewhere.

Walgreen also took big steps toward growth in fiscal 2012. The company spent $4 billion in cash and more than 83 million shares for a 45 percent ownership stake in Alliance Boots, a Swiss company that runs the largest drugstore chain in the United Kingdom. Walgreens has said the deal will make it the world's single largest purchaser of prescription drugs.

Walgreen also agreed to buy a 144-store regional drugstore chain that includes USA Drug and Med-X among other stores.

The company also increased its quarterly dividend to 27.5 cents per share, up from 22.5 cents. The new rate is the largest in the company's 111-year history, according to its proxy statement.

The Associated Press executive compensation 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

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