CVS Health has appointed Brian Newman, former Chief Financial Officer at UPS, as its new finance chief, marking a key move in CEO David Joyner’s campaign to revitalize the company. The leadership shake-up is part of a broader effort to stabilize the healthcare giant following a turbulent stretch of underperformance.
Joyner, who took over as CEO in October, has already initiated cost-cutting strategies and brought on a new head for the company’s insurance division to tackle the mounting operational and financial challenges facing CVS—the most intense in its 60-year history.
The company’s financial results have lagged expectations, with missed earnings for the first three quarters of 2024 and a 43% drop in stock value last year. Investors are eager to see a rebound, and some view Newman’s hire as a step in the right direction.
"Rebuilding trust in CVS leadership is central to any recovery in the stock," said James Harlow, Senior Vice President at Novare Capital Management, a CVS investor. "Bringing in someone with high-level experience at companies like UPS and PepsiCo adds much-needed credibility."
CVS shares jumped more than 8% on the news, further buoyed by a favorable bump in projected Medicare Advantage reimbursements for 2026, which also lifted the broader sector.
Newman, 56, brings extensive financial leadership experience, having guided UPS through the volatility of the COVID-19 pandemic. Prior to his time at UPS, he spent nearly 30 years at PepsiCo, taking on various top finance roles. He stepped down from UPS in 2023 to focus on personal health and is now set to receive a $1 million base salary at CVS.
He takes over from Thomas Cowhey, who will transition into a strategic advisory role to Joyner beginning May 12, after serving just over a year as CFO.
Looking ahead, CVS says it expects its 2025 performance to either meet or surpass its prior forecasts. In February, the company projected adjusted earningsbetween $5.75 and $6.00 per share for the year. Analysts, on average, anticipate earnings of $5.91 per share, according to LSEG data.
Harlow commented, “That kind of guidance shows management now has a firmer grip on the business and where it’s headed.”