CVS Health Taps Brian Newman to CFO Position; Expects to Meet, Beat Fiscal Year Guidance
By Adriano Marchese
CVS Health has appointed Brian Newman to the role of chief financial officer, effective April 21, and said that it expects to meet or exceed its latest guidance for the year.
Newman brings to the health solutions company a wealth of experience, most recently serving as executive vice president and CFO of United Parcel Service.
Prior to his time at UPS, Newman was at PepsiCo where he spent the majority of his career. He served for 26 years in finance leadership roles across Europe, Asia and South America, and was executive vice president for PepsiCo's global operations and as chief strategy officer.
Newman takes over the reins from Tom Cowhey, who will transition to a strategic advisory role, supporting Chief Executive Officer David Joyner, effective May 12.
Newman is expected to receive an annual salary of $1 million and will be eligible for a bonus of 150% of his salary based on performance. He's also set to receive an equity award of $7 million made up of a mix of performance stock units, restricted stocks units and stock options.
Additionally, CVS has appointed Amy Compton-Phillips to the role of chief medical officer, effective May 19. Compton-Phillips was most recently chief physician executive of health care performance improvement company Press Ganey, and before that, chief clinical officer at Providence Health & Services, a health care system.
In November of last year, CVS shuffled its top executive, bringing in Joyner to head the company in place of Karen Lynch in response to a push for changes by Glenview Capital Management, a major hedge fund, and a board review of strategy that included the option of breaking up the company.
At the time, the company also warned again that its earnings for the year would miss expectations.
On Tuesday, CVS said that it now CVS said it currently expects financial performance will meet or exceed its most recent guidance for full year 2025 based on year-to-date results through February. In February, the company set guidance for adjusted earnings of $5.75 to $6 a share for 2025.
Analysts polled on FactSet expect adjusted earnings of $5.90 a share.
Write to Adriano Marchese at adriano.marchese@wsj.com