Express Scripts 2012 Annual Report Download - page 18

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Express Scripts 2012 Annual Report16
15
Insurance
Our PBM operations, including the dispensing of pharmaceutical products by our home delivery pharmacies, our
Other Business Operations, including the distribution of specialty drugs, and the services rendered in connection with our
disease management operations, may subject us to litigation and liability for damages. Commercial insurance coverage is
difficult to obtain and cost prohibitive, particularly for certain types of claims. As such, we may maintain significant self-
insured retentions when deemed most appropriate and cost effective. We have established certain self-insurance accruals to
cover potential claims. There can be no assurance we will be able to maintain our general, professional or managed care
errors and omissions liability insurance coverage in the future or that such insurance coverage, together with our self-
insurance accruals, will be adequate to cover potential future claims. A claim, or claims, in excess of our insurance
coverage could have a material adverse effect upon our consolidated results of operations, consolidated financial position
and/or consolidated cash flow from operations.
Employees
As of December 31, 2012 and 2011, we employed approximately 30,215 and 13,120 employees, respectively,
worldwide. Approximately 19.4% of the employees are members of collective bargaining units at December 31, 2012.
Specifically, we employ members of the following unions:
Service Employees International Union
American Federation of State, County and Municipal Employees
United Food and Commercial Workers Union
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers
International Union, American Federation of Labor – Congress of Industrial Organizations
Association of Managed Care Pharmacists
Guild for Professional Pharmacists
International Union of Operating Engineers
Retail, Wholesale and Department Store Union, United Food and Commercial Workers
Collective bargaining agreements covering these employees expire at various dates through December 2015. Nine
collective bargaining agreements with various labor organizations will expire during 2013.
Executive Officers of the Registrant
Our executive officers and their ages as of February 1, 2013 are as follows:
Name
Age
Position
George Paz 57 Chairman, President and Chief Executive
Officer
Jeffrey Hall 46 Executive Vice President and Chief Financial
Officer
Keith Ebling 44
Executive Vice President, General Counsel and
Secretary
Edward Ignaczak 47 Executive Vice President, Sales and Marketing
Patrick McNamee 53 Executive Vice President, Chief Operating
Officer
Mr. Paz was elected a director of the Company in January 2004 and has served as Chairman of the Board since
May 2006. Mr. Paz was elected President in October 2003 and also assumed the role Chief Executive Officer on April 1,
2005. Mr. Paz joined us and was elected Senior Vice President and Chief Financial Officer in January 1998 and continued
to serve as our Chief Financial Officer following his election to the office of President until his successor joined us in April
2004.
Mr. Hall was named Executive Vice President and Chief Financial Officer in April 2008. Prior to joining us, Mr.
Hall worked for KLA-Tencor, a leading supplier of process control and yield management solutions. Mr. Hall joined KLA-
Tencor in January 2000, serving in various positions including Senior Vice President and Chief Financial Officer.
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