Top Price Market
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Top Price Market

Business

CVS replaces CEO as profits, share price suffer

by October 19, 2024
October 19, 2024
CVS replaces CEO as profits, share price suffer

Longtime CVS Health executive David Joyner has replaced Karen Lynch as CEO, as the company struggles to drive higher profits and stock performance, CVS announced Friday.

The move, effective Thursday, the day before the announcement, comes as CVS shares have fallen nearly 20% this year. Shares plunged about 13% in premarket trading Friday.

CVS has faced challenges as higher medical costs weigh on its insurance unit, Aetna, and consumer spending drops at its retail pharmacies. In August, the company slashed its full-year profit guidance and said it would cut $2 billion in costs over the next several years.

In its release Friday, CVS also said it expects adjusted earnings of between $1.05 and $1.10 per share in its third quarter. It anticipates higher medical costs than previously expected, with a so-called medical benefit ratio of 95.2% in the quarter.

“In light of continued elevated medical cost pressures in the Health Care Benefits segment, investors should no longer rely on the Company’s previous guidance provided on its second quarter 2024 earnings call on August 7, 2024,” CVS said in the release.

The company is set to report third-quarter earnings on Nov. 6.

Last month, major CVS shareholder Glenview Capital began a significant push for changes at the company, CNBC previously reported.

CNBC reported last month that CVS’ board had engaged strategic advisors to weigh its options, including the potential of a breakup of its insurance and retail businesses.

Joyner most recently oversaw the company’s pharmacy services business as president of CVS Caremark, a similar position to the one Lynch held before she assumed the top job in February 2021. He began his career at Aetna in pharmacy benefit services and previously held the role of executive vice president of sales and marketing at CVS Health.

“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,” Chairman Roger Farah said in a statement.

Lynch also stepped down from the company’s board of directors this week, the company said Friday. Joyner will take a seat on the board, and Farah will assume the role of executive chairman.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
‘We have paid the price’: Gazans say Sinwar’s death will not change anything
next post
Cuba hit by second nationwide blackout amid worsening energy crisis

You may also like

Sex, Signal messages and sabotage: SBF’s top execs...

Clorox warns cyberattack and product shortages will drag...

Walz’s family relied on Social Security when his...

More than 15 million Toshiba laptop adapters recalled...

Flagging sales and Elon Musk’s political activities are...

‘Absurd’: NTSB chair blasts Boeing for failing to...

Philadelphia Fed President Patrick Harker advocates for interest...

Honda and Nissan officially begin merger talks to...

Tesla to recall 125,227 vehicles over faulty seat...

MGM Resorts reaches labor deal with Las Vegas...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Massachusetts suspect charged with attempting to assassinate a Cabinet nominee

    • Pakistan says it has struck military targets inside India in series of new attacks

    • Rodrigo Duterte is being held at The Hague. Next week he might be elected mayor of his hometown

    • Buffett Hands Over Reins, What’s Next for Berkshire’s Capital Strategy?

    • Triumph Gold Updates Shareholders on Operations, Engages Market Maker, and Grants Options

    Categories

    • Business (1,632)
    • Investing (4,787)
    • Politics (7,557)
    • Uncategorized (2)
    • World (6,139)
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    • Email Whitelisting

    Disclaimer: toppricemarket.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 toppricemarket.com | All Rights Reserved


    Back To Top