CVS Picks New CEO: David Joyner Takes the Helm

CVS Health has named David Joyner as its new CEO, filling the shoes of Karen Lynch who stepped down after an agreement with the board. Joyner, previously the vice president of CVS Health and president of CVS Caremark, will also join the board. The company believes Joyner's deep understanding of their integrated business will help address industry challenges and drive operational improvements. "There's no greater honor than leading a company focused on improving health," Joyner said in a statement. He's committed to delivering the best for all stakeholders, including customers, employees, patients, and shareholders. Former CEO Karen Lynch is praised for her customer-focused leadership, especially during the COVID-19 pandemic.

CVS recently laid off nearly 3,000 workers as part of a cost-cutting effort. They aim to save $2 billion over several years. The company also shared preliminary third-quarter 2024 guidance, expecting diluted earnings per share of $0.03 to $0.08 and adjusted earnings per share of $1.05 to $1.10. The third quarter includes charges to cover premium deficiency reserves, mainly from their Medicare and Individual Exchange businesses. They expect a restructuring charge of about $1.2 billion due to store closures in 2025 and cost-reduction actions. Medical costs have exceeded projections, so investors should no longer rely on previous guidance.

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