WOONSOCKET, RI – CVS Health announced Friday, Oct. 18 that David Joyner was appointed president and CEO, effective Oct. 17, replacing Karen Lynch, who stepped down from her position in agreement with the company’s board.
Joyner also joined the board and current Chairman Roger Farah will now be executive chairman.
Joyner was most recently executive vice president, CVS Health, and president, CVS Caremark. He led the pharmacy services business, which provides solutions to employers, health plans and government entities and serves approximately 90 million members through Caremark, CVS Specialty, and other areas.
Joyner has 37 years of health care and pharmacy benefit management experience, and has also served on the boards of several private equity-backed health care companies. He began his career at Aetna as an employee benefit representative before joining Caremark Prescription Services as a regional sales manager. He then served as executive vice president of sales and account services at CVS Caremark and executive vice president of sales and marketing at CVS Health.
“The board believes this is the right time to make a change, and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients, and shareholders,” said Farah. “To build on our position of strength, we believe David (Farah) 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.”
Joyner believes he is up to the challenge at CVS Health.
“There is no greater honor than to lead a company whose mission and purpose are completely focused on improving health,” said Joyner. “I came back to CVS Health in 2023 because I believed I could give more to the company, and I take this opportunity today for the same reason.
“Aligned with our management team and our Board, I believe in the future of our company and I am committed to delivering our best every day to everyone we serve.”
Farah was appreciative of Lynch’s contributions made to the company.
“The board also recognizes the many contributions Karen made to our company, both during her tenure at Aetna and then as President and CEO of CVS Health,” he said in a statement. “We are grateful for her consistent, customer-focused leadership, especially during the COVID-19 pandemic when our pharmacies provided needed tests and vaccines.”
The company also providing preliminary guidance for third quarter 2024 GAAP diluted earnings per share (EPS) of $0.03 to $0.08 and adjusted EPS of $1.05 to $1.10. Results for the third quarter include charges to record premium deficiency reserves (PDRs), primarily related to the company’s Medicare and Individual Exchange businesses inside its Health Care Benefits segment, of approximately $1.1 billion, which lowered third quarter 2024 Adjusted EPS by $0.63.
The company’s third quarter earnings also reflect a restructuring charge of approximately $1.2 billion, related to incremental store closures in 2025, as well as cost reduction actions.
