AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
By Bhanvi Satija (Reuters) -CVS Health on Tuesday named Brian Newman, the former finance head of United Parcel Service, as its chief financial officer amid a turnaround at the healthcare conglomerate being led by new CEO David Joyner. After he took 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. The stock fell 43% last year. Shares of the company jumped more than 11% in early trading, also helped by a 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 led UPS through the COVID-19 pandemic, had stepped down as CFO last year to focus on his health. He spent about three decades with PepsiCo in numerous finance leadership roles before joining UPS in 2019. The 56-year-old executive's vast experience will be "helpful to address the complexity of CVS' broad enterprise," said Leerink Partners' analyst Michael Cherny, adding that each of CVS' three businesses has individual finance teams. Apart from its health insurance business, Aetna, CVS also owns a pharmacy benefit manager and one of the largest U.S.
retail pharmacy chains. Newman 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. The company 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)
CVS taps ex-UPS finance chief Brian Newman in latest turnaround move
April 08, 2025 11:37 AM BST | By EODHD
Recent News
