One of the nation’s largest healthcare companies is experiencing a seismic shakeup.
CVS Health announced on Friday morning that David Joyner was appointed as the company’s new president and CEO, replacing Karen Lynch, effective immediately. Joyner had been serving as the president of CVS Caremark, which manages the larger firm’s pharmacy-benefit operations and was executive vice president of CVS. He has nearly four decades of experience in the industry.
The company’s stock was down more than 7% in early trading on Friday after the news was announced. Lynch took the reins as CEO in February 2021; she had previously served as executive vice president.
‘This is the right time to make a change’
The shakeup comes as CVS has struggled in recent years, with repeated forecast cuts for revenue and profits. Year-to-date, shares of CVS Health are down more than 21%, and are down significantly from spring 2022.
CVS announced earlier this month that it planned to lay off 2,900 employees. In 2021, it announced plans to close over 900 stores over the following three years, reflecting challenges in the broader retail market. (Its rival Walgreens announced just this week that it plans to close 1,200 stores over the next three years.)
CVS last reported earnings in early August, which showed quarterly revenues up 2.6% year-over-year, but revised forward guidance, anticipating a slowdown.
With all of that baked in, the company decided to shake things up at the top.
“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 Roger Farah, CVS’s new executive chairman, in a statement. “To build on our position of strength, we believe David 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.”
“There is no greater honor than to lead a company whose mission and purpose are completely focused on improving health,” said Joyner, in a statement included in the company’s release. “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.”