Joyner, who had been vice president of CVS Health and president of CVS Caremark, will also join the CVS board. File Photo by Jim Ruymen/UPI | License Photo
Oct. 18 (UPI) — CVS Health announced on Friday it has appointed David Joyner as its new CEO, replacing Karen Lynch.
CVS said that as of Thursday, Joyner — who had been vice president of CVS Health and president of CVS Caremark — will also join the CVS board after Lynch stepped down in an agreement with the CVS board.
“The Board believes this is the right time to make a change, and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients, and shareholders,” CVS board Executive Chairman Roger Farah said.
Farah said the board believes Joyner has a deep understanding of “our integrated business can help us more directly address the challenges our industry faces, more rapidly advance the operational improvements our company requires, and fully realize the value we can uniquely create.”
Joyner said in a statement that “there is no greater honor than to lead a company whose mission and purpose are completely focused on improving health.”
“Aligned with our management team and our Board, I believe in the future of our company and I am committed to delivering our best every day to everyone we serve,” Joyner said.
Farah recognized the contributions of outgoing CEO Karen Lynch.
“The Board also recognizes the many contributions Karen made to our company, both during her tenure at Aetna and then as President and CEO of CVS Health,” Farah’s statement said. “We are grateful for her consistent, customer-focused leadership, especially during the COVID-19 pandemic when our pharmacies provided needed tests and vaccines.”
CVS laid off nearly 3,000 workers Oct. 1, described by the company as a cost-cutting move. The company said the layoffs were part of a multiyear effort to cut $2 billion in costs.
As CVS announced the new CEO, the company shared preliminary third-quarter 2024 guidance.
CVS reported diluted earnings per share of $0.03 to $0.08 and adjusted earnings per share of $1.05-$1.10.
“Results for the third quarter include charges to record premium deficiency reserves (PDRs), primarily related to the company’s Medicare and Individual Exchange businesses inside its Health Care Benefits segment, of approximately $1.1 billion, which lowered third quarter 2024 Adjusted EPS by $0.63,” CVS said in a statement.
For the third quarter of 2024 CVS said there is a restructuring charge of approximately $1.2 billion. CVS said that charge is related to incremental store closures coming in 2025 as well as cost reduction actions in the second quarter.
CVS said medical costs were in excess of those projected in its prior outlook. As a result, CVS said, “Investors should no longer rely on the Company’s previous guidance provided on its second quarter 2024 earnings call on August 7, 2024.”