Next CVS CEO Will Be Lynch, Top Exec at Aetna Side of Business
Friday, November 06, 2020
CVS Health on Friday named Karen Lynch, chief of the company’s Aetna insurance arm, as its next CEO, Lynch will take over for Larry Merlo effective February 1, 2021.
The appointment will makes CVS the largest company by revenue to be run by a female CEO.
The company reported $256 billion in revenue last year.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe appointment raises questions about CVS’s future in RI and Lynch is historically a Connecticut-based executive.
Lynch presided over Aetna following its acquisition by CVS in 2018.
“We’re on a mission to reshape health care as we know it today,” Lynch said Friday on a call with analysts. “Never before has our purpose been more critical.”
The announcement came as CVS said sales rose 3.5% to $67.06 billion in the quarter ended Sept. 30 as more diagnostic testing during the Covid-19 pandemic helped boost the company’s retail business.
CVS said it has doubled the number of locations where it offers Covid-19 testing to more than 4,000, and has administered more than six million tests for coronavirus to date.
"This leadership transition comes at the right time for CVS Health. This month marks the two year anniversary as one company, with our foundation clearly established and significant positive momentum across the company," David Dorman, Chair of the Board of CVS Health Corporation. "As Larry has been transparent with us about his overall plans, we were able to put a thorough, multi-year process in place to consider and evaluate internal and external candidates. That process led to the selection of Karen Lynch. Larry's collaboration with Karen in the coming months will ensure an effective leadership transition."
"Karen is a seasoned health care expert who knows our business. She brings a relentless focus on the customer, a strong track record of driving growth and innovation, and proven transformational leadership, all of which position her well for success. Our Board of Directors believes that Karen is the right leader to guide CVS Health into its next era of growth as the company continues its transformation," Dorman said.
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