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CVS Health appointed David Joyner president and CEO, effective Oct. 17, replacing Karen Lynch, who stepped down from the position.
Mr. Joyner most recently served as executive vice president of CVS Health and president of CVS Caremark. He led the pharmacy services business, which serves about 90 million members through Caremark, CVS Specialty and other areas. He also joined the board of directors, and Board Chair Roger Farah was named executive chair.
The CEO move comes as CVS has struggled to control costs in its health insurance businesses and its retail pharmacies have struggled. Shares in the company dropped by about 24% this year, according to The Wall Street Journal.
"The board believes this is the right time to make a change," Mr. Farah said in an Oct. 18 news release. "We believe David and his 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."
Ms. Lynch recently took over leadership of Aetna after a difficult year for the insurer; revenue in CVS' healthcare benefits segment dropped 40% year over year in the second quarter. Brian Kane, former president of Aetna, left the company in August.
Before her departure, CVS and Ms. Lynch agreed on a letter outlining her benefits and a six-month term during which she will provide advisory services for the company, according to an Oct. 18 filing with the SEC. In return, she will receive $375,000 a month and company-provided security services. CVS also amended her restrictive covenant agreement, extending the non-compete and non-solicitation provisions to 30 months after her departure.
Mr. Joyner most recently served as executive vice president of CVS Health and president of CVS Caremark. He led the pharmacy services business, which serves about 90 million members through Caremark, CVS Specialty and other areas. He also joined the board of directors, and Board Chair Roger Farah was named executive chair.
The CEO move comes as CVS has struggled to control costs in its health insurance businesses and its retail pharmacies have struggled. Shares in the company dropped by about 24% this year, according to The Wall Street Journal.
"The board believes this is the right time to make a change," Mr. Farah said in an Oct. 18 news release. "We believe David and his 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."
Ms. Lynch recently took over leadership of Aetna after a difficult year for the insurer; revenue in CVS' healthcare benefits segment dropped 40% year over year in the second quarter. Brian Kane, former president of Aetna, left the company in August.
Before her departure, CVS and Ms. Lynch agreed on a letter outlining her benefits and a six-month term during which she will provide advisory services for the company, according to an Oct. 18 filing with the SEC. In return, she will receive $375,000 a month and company-provided security services. CVS also amended her restrictive covenant agreement, extending the non-compete and non-solicitation provisions to 30 months after her departure.
