Drugstore.com CEO stands to win big when deal closes

Drugstore.com Chief Executive Dawn Lepore stands to walk away with $9.1 million in stock and options when Walgreens completes its planned purchase of the Bellevue-based company, according to an analysis by Equilar, an executive-compensation data firm in the San Francisco Bay Area.

That's on top of the $6.2 million in salary, bonuses and the sale of stock Lepore took home between 2004 and the end of 2009, the most recent year for which compensation data are available.

Equilar's projected payout is based on Lepore's stock holdings and Walgreens' proposed purchase price of $3.80 a share.

Drugstore.com disclosed a year ago that if the company goes through a change in control, such as a merger or acquisition, all of Lepore's equity awards immediately vest, leading to the $9.1 million estimate by Equilar.

Lepore, 57, joined drugstore.com as president, CEO and chairwoman in fall 2004. Before then, she was a senior executive and career employee at Charles Schwab.

Lepore also serves on the boards of eBay and The New York Times Co.

In an interview Thursday, she said she plans to see drugstore.com through its transition with Walgreens, possibly for three to six months, or longer if necessary. After then?

"I'll move on to my next opportunity," she said. "I'm not going to retire. I love being a CEO. It's what I do for a living."

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com

This story was originally published March 24, 2011, and corrected April 4, 2011. The story originally listed Wal-Mart Stores as one of the companies where Dawn Lepore was serving on the board. She no longer is a Wal-Mart board member.