CVS Health, the heavily diversified health care company whose CEO David Joyner is leading a highly publicized $2 billion cost-cutting effort, has hired former United Parcel Service CFO Brian Newman as the company’s new finance chief and executive vice president.
Newman replaces Tom Cowhey, who was appointed full-time CFO in early 2024 after serving as interim CFO since October 2023. Newman takes over on April 21, and Cowhey will transition to an executive advisory role to Joyner on May 12.
CVS is also dealing with activist investor Glenview Capital, which acquired a 1% stake in CVS — worth about $700 million — in late September 2024. In mid-November, CVS announced the appointment of four new board members from Glenview, including the firm’s CEO, Larry Robbins. Glenview’s push came amid concerns over CVS’s performance and strategic direction.
Glenview’s impact was felt almost immediately at CVS. Its pressure led to the departure of former CEO Karen Lynch shortly after Glenview came on board and played a major role in the hiring of Joyner as CEO.
Newman’s hire likely stems from his experience steering UPS through the COVID-19 pandemic, a major union negotiation and the implementation of the company’s “1+2 strategy,” which aimed to grow revenue, cut costs and improve margins while navigating significant internal and external change. His background in managing large-scale logistics operations is also notable, as CVS Health aims to expand its health care delivery offerings while trimming expenses simultaneously.
Newman, who began his career as an investment banker, spent nearly three decades at PepsiCo before joining UPS. He held a range of global financial leadership roles at PepsiCo, rising to positions such as vice president of global operations and chief strategy officer.
According to an SEC filing, Newman’s compensation closely mirrors Cowhey’s — a $1 million base salary with an annual bonus target of 150% of base. Newman’s equity compensation is slightly higher — $7 million versus Cowhey’s $5.5 million. Neither received a sign-on bonus.
