CVS Health (NYSE: CVS) has named David Joyner as President and Chief Executive Officer, effective October 17, succeeding Karen Lynch, who stepped down in agreement with the Board of Directors. Joyner also joins the Board, while Roger Farah transitions to Executive Chairman.
Previously, Joyner served as executive vice president and president of CVS Caremark, overseeing the pharmacy services business that serves approximately 90 million members through Caremark and CVS Specialty.
With 37 years of experience in healthcare and pharmacy benefit management, Joyner has held various leadership roles, starting his career at Aetna before moving to Caremark.
“The Board believes this is the right time for a change, and we’re confident David is the right leader to guide us,” said Farah. “His deep understanding of our integrated business will help us tackle industry challenges and enhance operational improvements.”
Joyner expressed his honor in leading CVS Health, stating, “I am proud to work alongside our 300,000 colleagues to improve health access and outcomes for over 186 million people.” He emphasized his commitment to delivering the best service to all stakeholders.
Farah acknowledged Lynch’s contributions during her tenure, especially her leadership during the COVID-19 pandemic and efforts to modernize CVS Health into a technology-driven healthcare company.
Financial Guidance
In conjunction with this announcement, CVS Health provided preliminary guidance for Q3 2024, estimating GAAP diluted EPS of $0.03 to $0.08 and Adjusted EPS of $1.05 to $1.10. The results include charges related to premium deficiency reserves (PDRs) affecting the Medicare and Individual Exchange businesses, which lowered Adjusted EPS by $0.63.
The Medical Benefit Ratio (MBR) for Q3 is expected to be around 95.2%, impacted by the PDRs. The company will provide more details in its upcoming earnings call on November 6, 2024.
Non-GAAP Financial Measures
This announcement includes projected Adjusted EPS as a non-GAAP financial measure, which CVS Health uses to analyze its business performance. Adjusted EPS is calculated by excluding certain items from net income attributable to CVS Health, providing insight into the company’s underlying performance.
