CVS Health Leadership Change

(Reuters) – CVS Health (NYSE:CVS) CEO Karen Lynch is stepping down after nearly four years at the helm, as the healthcare conglomerate faces shareholder pressure to improve its business performance.

Lynch, who was the head of its Aetna insurance unit before taking over as CEO, will be replaced by company veteran David Joyner.

CVS stock has lost nearly 26% of its value this year due to multiple cuts to the firm's annual profit forecast.

Timeline of Key Events During Lynch's Tenure:

• Feb. 1, 2021: Karen Lynch begins her role as CEO in the midst of the COVID-19 pandemic.
• Feb. 9, 2022: The company's shares trade near 7-year highs as its drugstores benefit from high demand for COVID-19 vaccines.
• Aug. 3, 2022: CVS Health lifts its annual outlook for COVID-related revenue, expecting sales of over-the-counter tests to double.
• Sept. 5, 2022: CVS agrees to buy home healthcare services company Signify Health for about $8 billion in cash.
• Feb. 8, 2023: CVS announces it will buy primary care provider Oak Street Health for about $9.5 billion in cash.
• May 3, 2023: CVS pauses acquisitions to focus on integrating Signify Health and Oak Street Health.
• Aug. 2, 2023: CVS cuts 5,000 non-customer-facing roles and shuts its clinical trials services to cut costs.
• Nov. 1, 2023: CVS updates its profit forecast due to potentially higher medical costs at its insurance unit.
• Dec. 5, 2023: CVS forecasts 2024 revenue above market estimates, aims to simplify pharmacy reimbursement structures.
• Feb. 27, 2024: CVS cuts its 2024 profit forecast due to an increase in Medicare-related costs.
• April 2, 2024: Final 2025 Medicare Advantage rates imply a cut, raising investor concerns.
• May 1, 2024: CVS cuts its profit forecast again.
• Aug. 7, 2024: Shares drop after another cut to profit forecasts, with CVS expecting high medical costs.
• Aug. 14, 2024: A regulatory filing shows Sachem Head Capital Management built a new stake in CVS.
• Sept. 29, 2024: The Wall Street Journal reports hedge fund Glenview will meet CVS executives to discuss operational improvements.