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CVS Appoints New CEO as Profits and Share Price Decline


David Joyner has replaced Karen Lynch as the CEO of CVS Health as the company faces challenges in driving higher profits and stock performance. CVS shares have fallen nearly 20% this year. The company has struggled with higher medical costs impacting its insurance unit, Aetna, and a drop in consumer spending at its retail pharmacies. CVS recently slashed its full-year profit guidance and announced plans to cut $2 billion in costs over the next several years.

The company expects adjusted earnings of between $1.05 and $1.10 per share in the third quarter, citing higher medical costs than previously expected. Major shareholder Glenview Capital has been pushing for changes at CVS, and the company’s board has engaged strategic advisors to explore options, including a potential breakup of its insurance and retail businesses.

David Joyner, a longtime CVS executive, previously oversaw the company’s pharmacy services business as president of CVS Caremark. He is expected to help address industry challenges and advance operational improvements. Lynch has stepped down as CEO and from the board of directors, with Joyner taking a seat on the board and Roger Farah assuming the role of executive chairman. The company is set to report third-quarter earnings on Nov. 6.

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