By Bhanvi Satija (Reuters) -CVS Health on Tuesday tapped former UPS executive Brian Newman for the role of finance chief, as new CEO David Joyner strengthens management ranks in his bid to turn around the company. After taking the helm in October, Joyner laid out cost-cutting plans and named a new insurance head to help […]
Health
CVS taps former UPS executive as finance chief in turnaround push
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By Bhanvi Satija
(Reuters) -CVS Health on Tuesday tapped former UPS executive Brian Newman for the role of finance chief, as new CEO David Joyner strengthens management ranks in his bid to turn around the company.
After taking the helm in October, Joyner laid out cost-cutting plans and named a new insurance head to help the company navigate one of the most challenging periods in its six-decade history.
CVS, which has faced financial struggles and investor pressure in the past few years, missed its earnings targets for the first three quarters of 2024.
“A major piece of the CVS stock recovery story revolves around restoring management credibility,” said James Harlow, senior vice president at CVS investor Novare Capital Management. He said bringing in an outsider with major company experience as CFO was a positive step in that direction.
CVS Health shares rose over 8% and were also boosted by bigger-than-expected increase in the U.S. government’s reimbursement rates for Medicare Advantage plans in 2026 that lifted shares across the sector.
Newman, who played a major role in guiding United Parcel Service through the COVID-19 pandemic, stepped down as CFO last year to focus on his health. The 56-year-old executive spent about three decades with PepsiCo in numerous finance leadership roles before joining UPS in 2019.
He replaces Thomas Cowhey as CFO and will receive a base salary of $1 million. Cowhey will become a strategic adviser to Joyner, effective May 12, after little over a year as CFO.
CVS expects its 2025 financial results “will meet or exceed” its previously issued forecast. Harlow said this indicated that “the management has a better handle” on the business.
CVS had said in February that it expects to earn an annual adjusted profit of between $5.75 and $6.00 per share. Analysts expect an annual per share profit of $5.91, according to data compiled by LSEG.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta and Pooja Desai)