Express Scripts 2013 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2013 Express Scripts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

19 Express Scripts 2013 Annual Report
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 may be
difficult to obtain and cost prohibitive, particularly for certain types of claims. We may maintain significant self-insured
retentions where 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 certain types of 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, not covered by insurance or in excess of our insurance coverage could have a material adverse effect on our
consolidated results of operations, consolidated financial position and/or consolidated cash flow from operations.
Employees
As of December 31, 2013 and 2012, we employed approximately 29,975 and 30,215 employees, respectively,
worldwide. Approximately 14.8% of the employees are members of collective bargaining units at December 31, 2013.
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. Six
collective bargaining agreements with various labor organizations will expire during 2014.
Executive Officers of the Registrant
Our executive officers and their ages as of February 20, 2014 are as follows:
Name Age Position
George Paz 58 Chairman and Chief Executive Officer
Timothy Wentworth 53 President
Cathy Smith 50 Executive Vice President and Chief Financial Officer
Keith Ebling 45 Executive Vice President and General Counsel
Edward Ignaczak 48 Executive Vice President, Sales and Marketing
Christine Houston 51 Senior Vice President, Operations
Steven Miller 56 Senior Vice President and Chief Medical Officer
David Norton 58 Senior Vice President, Supply Chain
Glen Stettin 50 Senior Vice President, Clinical Research and New Solutions
Sara Wade 44 Senior Vice President and Chief Human Resources Officer
Gary Wimberly 52 Senior Vice President and Chief Information Officer
Christopher Knibb 44 Vice President and Chief Accounting 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 assumed the role Chief Executive Officer on April 1, 2005 and also served as President from October 2003
to February 2014. 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.