America’s 10 Highest Paid CEOs (Which Are Worth It?)

5. Thomas M. Ryan
> Company: CVS Caremark (NYSE: CVS)
> Total 2010 compensation: $68.1 million

CVS Caremark shares underperformed the market last year and were only up 8%. That alone makes it hard to justify Ryan’s compensation. CVS’s financial results were also poor. Revenue fell from $98.7 billion in 2009 to $96.4 billion in 2010. EPS fell from $2.55 to $2.49.

4. Frank Coyne
> Company: Verisk Analytics (NASDAQ: VRSK)
> Total 2010 compensation: $68.4 million

Verisk slightly underperformed the market with its shares up 14% for the 2010 calendar year. A pay package of over $68 million is extravagant for that return. Coyne should get credit for a relatively strong year financially. EPS rose from $0.72 in 2009 to $1.36 in 2010. Revenue rose from $1 billion to $1.1 billion year-over-year.

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3. John C. Plant
> Company: TRW Automotive (NYSE: TRW)
> Total 2010 compensation: $76.8 million

TRW shares soared during 2010, ending the year almost 105% higher. The extraordinary performance was driven by EPS, which rose from $0.51 to $6.49, as revenue moved from $11.6 billion to $14.4 billion. TRW, which supplies car parts, benefited from the rebound in the car industry, but Plant’s compensation is reasonable based on the results he delivered to shareholders.

2. Joel F. Gemunder
> Company: Omnicare (NYSE: OCR)
> Total 2010 compensation: $98.3 million

Gemunder’s 2010 pay package cannot be justified based on shareholder returns. The firm’s stock was up only 2% for the period. It is not any wonder. The company’s EPS fell from $1.81 in 2009 to a loss of $0.91 in 2010. Revenue fell from $6.2 billion to $6.1 billion.

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1. John H. Hammergren
> Company: McKesson (NYSE: MCK)
> Total 2010 compensation: $145.3 million

McKesson’s shares were up 13% in 2010, underperforming the S&P 500. In that light, it is hard to imagine how the board of McKesson’s could have given Hammergen such an extraordinary award. McKesson’s revenue was $112 billion in 2010, up from $108.7 billion in 2009. EPS, however, fell to $4.62 to $4.29.

Douglas A. McIntyre

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