- The Washington Times - Tuesday, March 24, 2009

NEW YORK (AP) - The chief executive of clinical lab services company Laboratory Corp. of America Holdings received compensation valued at $8.2 million in 2008, an annual increase of 27 percent, according to an Associated Press calculation of figures disclosed in a regulatory filing.

David King’s salary grew 6 percent to $791,667 from $750,000, and he received a bonus of $160,000.

Technically, the value of his stock and options on the dates they were granted rose 58 percent, to $6.6 million from $4.2 million. But $2.4 million of those awards have an exercise price of $75.63, well above the stock’s Tuesday closing price of $57.63, meaning they currently have little value absent a major rebound in stock price.

His other compensation, including car allowance and financial services, fell 9 percent to about $46,000.

The Burlington, N.C.-based company’s profit increased 1 percent in 2008, to $514.4 million as revenue grew 11 percent to $4.51 billion. The company’s stock dipped 14.7 percent to finish the year at $64.41.

The Associated Press 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. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.

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