Summary
This Form 8-K filing by CVS Corporation, dated March 3, 2006, details executive compensation adjustments and a significant board departure. Key actions include the establishment of performance targets for the 2006 annual incentive plan and the 2006-2008 Long-Term Performance Share Plan, with award structures tied to corporate financial performance metrics such as consolidated earnings before interest and taxes and diluted earnings per share growth. Salary increases for several named executive officers were also approved, reflecting their roles and responsibilities. Furthermore, the filing announces the upcoming retirement of Stanley P. Goldstein from the Board of Directors at the company's annual meeting in May 2006. Mr. Goldstein, the founder of CVS Corporation, has had a long and impactful tenure, serving as Chairman and CEO. This transition marks the end of an era for the company, and investors will likely monitor the board's composition and leadership continuity.
Key Highlights
- 1CVS Corporation established performance targets for its 2006 annual incentive plan, with award percentages varying by executive position.
- 2The 2006-2008 Long-Term Performance Share Plan's performance criterion is set as diluted earnings per share compound annual growth rate.
- 3Annual incentive award amounts are based on consolidated earnings before interest and taxes, with maximum opportunities set for various executive roles.
- 4Base salaries for key executives, including the CEO, CFO, and other EVPs, were increased.
- 5Stanley P. Goldstein, founder of CVS Corporation, will retire from the Board of Directors at the May 11, 2006 annual meeting.
- 6Non-employee director annual retainers are increasing from $50,000 to $65,000, effective May 2006.
- 7Long-term incentive awards are paid 50% in cash and 50% in CVS shares, subject to a two-year holding requirement.