CVS Health Appoints Former UPS And Pepsi Exec As Finance Chief, Stock Soars

CVS Health Inc CVS on Tuesday named Brian Newman as executive vice president and chief financial officer designate, effective April 21.

He will succeed current chief financial officer Tom Cowhey, who will transition as a strategic advisor to president and chief executive officer David Joyner, effective May 12.

Newman was most recently executive vice president and chief financial officer of United Parcel Service Inc UPS.

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Before joining UPS, Newman spent 26 years with PepsiCo, where he held finance leadership roles across Europe, Asia, and North and South America. He also served as executive vice president for PepsiCo's global operations and chief strategy officer. Newman began his career as an investment banker at PaineWebber.

Amy Compton-Phillips, the company's new executive vice president and chief medical officer, effective May 19, will also report to David Joyner.

Dr. Compton-Phillips was most recently chief physician executive of Press Ganey, a health care performance improvement company.

Prior to Press Ganey, Dr. Compton-Phillips was the president and chief clinical officer at Providence Health & Services, a health care system, responsible for clinical operations and care including improving health, care, and value outcomes delivered by the system's hospitals, clinics, and caregivers. From 1985 to 2007, she held positions of increasing responsibility at Kaiser Permanente.

In February, CVS Health reported fourth-quarter sales of $97.71 billion, beating the consensus of $97.19 billion.

Total revenues increased 4.2%, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments, partially offset by a decline in the Health Services segment.

The Medical benefit ratio increased from 88.5% to 94.8% compared to the prior year, driven by increased utilization, the unfavorable impact of the previously disclosed decline in the company's Medicare Advantage star ratings for the 2024 payment year, and the impact of higher acuity in Medicaid.

In October 2024, CVS Health appointed longtime executive David Joyner as its new president and CEO, replacing Karen Lynch amid the company's ongoing financial struggles.

In November 2024, CVS Health appointed Prem Shah as the Group President, responsible for the operational performance across CVS Caremark, CVS Pharmacy, and the company's Healthcare Delivery businesses.

In addition, the company appointed Steve Nelson as President of Aetna.

Price Action: At the last check on Tuesday, CVS stock was up 9.52% at $69.93 during the premarket session.

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