UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): | May 18, 2021 ( |
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Former name or former address, if changed since last report: | N/A |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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Appointment of Shawn M. Guertin as Executive Vice President and Chief Financial Officer
On May 17, 2021, the Board of Directors of CVS Health Corporation (“CVS Health”) appointed Shawn M. Guertin, age 57, to serve as Executive Vice President and Chief Financial Officer of CVS Health, effective May 28, 2021 (the “Start Date”). Mr. Guertin is currently a member of the board of directors of DaVita Inc. and TriNet Group, Inc. Mr. Guertin previously served as Executive Vice President, Chief Financial Officer and Chief Enterprise Risk Officer of Aetna Inc. (“Aetna”) from January 2014 to May 2019 and as Senior Vice President, Chief Financial Officer and Chief Enterprise Risk Officer from February 2013 to January 2014. Prior to that role, he served as Head of Business Segment Finance at Aetna from April 2011 to February 2013 and held various leadership positions at Coventry Health Care, Inc., including Executive Vice President and Chief Financial Officer from January 2005 to December 2009, Senior Vice President and Chief Actuary from February 2003 to December 2005 and Vice President of Finance from April 1998 to February 2003. Mr. Guertin has also held various leadership positions at The Travelers and UnitedHealthcare.
In connection with Mr. Guertin’s appointment as Executive Vice President and Chief Financial Officer of CVS Health, Mr. Guertin will receive an annualized base salary of $1.25 million and will be eligible to participate in CVS Health’s annual bonus plan with a target annual cash bonus opportunity of 175% of his base salary, pro-rated for the 2021 performance year. In addition, Mr. Guertin’s target annual equity award compensation will be $7.0 million, which for calendar year 2021 will be comprised of 75% performance stock units and 25% stock options. Mr. Guertin will also receive a one-time cash sign-on bonus of $1.0 million (the “Sign-On Bonus Award”) and a one-time sign-on equity award with a grant date value of $3.0 million (the “Sign-On Equity Award”), which will vest on the third anniversary of the grant date, subject to the terms of the applicable award agreement. Mr. Guertin will be required to repay the Sign-On Bonus Award if CVS Health terminates his employment for cause or if Mr. Guertin voluntarily terminates his employment within two years of the Start Date. The Sign-On Equity Award will vest in full, with settlement on the original vesting date, in the event Mr. Guertin’s employment is terminated by CVS Health without cause. If Mr. Guertin voluntarily terminates his employment, or if his employment is terminated by CVS Health for cause, prior to the vesting date of the Sign-On Equity Award, the Sign-On Equity Award will be forfeited upon his termination of employment.
Mr. Guertin also entered into CVS Health’s customary change in control agreement for executives and a restrictive covenant agreement which includes, among other things, non-competition and non-solicitation covenants for the 18-month period following his employment with CVS Health.
There are no family relationships, as defined in Item 401 of Regulation S-K, between Mr. Guertin and any of CVS Health’s executive officers or directors or persons nominated or chosen to become a director or executive officer. Mr. Guertin has not engaged in any transaction with CVS Health during the last fiscal year, and he does not propose to engage in any transaction, that would be reportable under Item 404(a) of Regulation S-K.
Departure of Eva C. Boratto as Executive Vice President and Chief Financial Officer
On May 18, 2021, CVS Health also announced that Eva C. Boratto, currently the Executive Vice President and Chief Financial Officer of CVS Health, will be leaving CVS Health. Effective as of May 28, 2021, Ms. Boratto will cease to serve as Executive Vice President and Chief Financial Officer of CVS Health. Thereafter, Ms. Boratto will continue to be employed at CVS Health in a non-executive capacity to assist in the transition of her duties until her departure from CVS Health, which date has not yet been determined. In connection with Ms. Boratto’s departure, it is expected that she will enter into a separation agreement. Material terms of Ms. Boratto’s separation agreement have not been finalized.
Item 7.01 Regulation FD Disclosure.
A press release related to the matters described in Item 5.02 of this Current Report on Form 8-K is furnished herewith as Exhibit 99.1 and hereby incorporated in this Item 7.01 by reference.
The information in Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (as amended, the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be or be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The exhibits to this Current Report on Form 8-K are as follows:
INDEX TO EXHIBITS
Exhibit | Description | |
99.1 | Press Release of CVS Health Corporation, dated May 18, 2021. | |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CVS HEALTH CORPORATION | ||
Date: May 18, 2021 | By: | /s/ Colleen M. McIntosh |
Colleen M. McIntosh | ||
Senior Vice President, Chief Governance Officer and Corporate Secretary | ||
CVS Health Appoints Shawn Guertin Chief Financial Officer
Woonsocket, R.I., May 18, 2021 – CVS Health (NYSE: CVS) today announced it has appointed Shawn Guertin as Executive Vice President and Chief Financial Officer, effective May 28, 2021.
“Shawn is an extraordinary leader with a proven track record of developing financial strategies to help companies drive transformation,” said CVS Health President and CEO Karen S. Lynch. “His deep and broad health care experience will be invaluable and I’m confident he will play an integral role as we transform CVS Health to become an even bigger part of consumers’ everyday health.”
Guertin spent eight years at Aetna where he was Executive Vice President, Chief Financial Officer and Chief Enterprise Risk Officer. He was the architect of the company’s finance strategy during a period of rapid growth and transformation. He helped Aetna enter new markets and grow through expansion and acquisitions and was key leader in shaping and affecting the merger with CVS Health in 2018. During his time in the role he was consistently recognized by Institutional Investor magazine as a top CFO.
Guertin succeeds Eva Boratto who is leaving the company after a successful 11-year career.
“Since I joined the company in 2010, CVS Health has undergone a period of significant growth and change,” said Boratto. “I am proud of our team and what we achieved. I am confident in CVS Health’s outlook for growth and long-term value going forward and am committed to helping the company through a seamless transition.”
Lynch added, “Eva served as CFO during a critical time following the Aetna acquisition and did an outstanding job supporting the integration of the two companies, managing our balance sheet, and helping us lead during the pandemic. Eva also drove our supplier diversity efforts, garnering external recognition of our leadership. We appreciate her achievements and dedication, and we wish Eva continued success.”
Guertin will report to Lynch and become a member of the company’s executive team. Guertin will be responsible for all aspects of the company’s financial strategy and operations, including accounting and financial reporting, investor relations, mergers and acquisitions, treasury and capital planning, investments, risk management, tax, budgeting and planning, and procurement.
“This is an exciting time for CVS Health,” said Guertin. “No other company has both the strong business and the customer reach and relationships to transform health care at scale. The pandemic has changed how Americans want to receive care and I’m excited to help CVS Health lead in a rapidly evolving marketplace.”
Most recently, Guertin served on the board of two public companies in health care and technology. He is an active supporter of Memorial Sloan Kettering and other charitable causes. Earlier in his career, Guertin was chief actuary and chief financial officer at Coventry Health Care, a leading health plan acquired by Aetna in 2012. He also served in a number of leadership positions at UnitedHealthcare and The Travelers.
CVS Health is reaffirming its 2021 guidance, which was previously provided on May 4, 2021. This includes its full year 2021 Adjusted EPS guidance range of $7.56 to $7.68 and full year 2021 cash flow from operations guidance range of $12.0 billion to $12.5 billion. CVS Health remains on track to achieve its low 3x leverage ratio goal in 2022.
As previously announced, CVS Health will hold its Investor Day on December 9, 2021.
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About CVS Health
We are a diversified health services company with more than 300,000 employees united around a common purpose of helping people on their path to better health. In an increasingly connected and digital world, we are meeting people wherever they are and changing health care to meet their needs. Built on a foundation of unmatched community presence, our diversified model makes us an integral part of people’s everyday health. From our innovative new services at HealthHUBTM locations, to transformative programs that help manage chronic conditions, we are making health care more accessible, more affordable and simply better. Learn more about how we’re transforming health at www.cvshealth.com.
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, those related to our financial performance for the full year 2021 and for future periods. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission (“SEC”) filings, including those set forth in the Risk Factors section and under the heading “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021. You are cautioned not to place undue reliance on CVS Health’s forward-looking statements. CVS Health’s forward-looking statements are and will be based upon management’s then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.
This Press Release includes non-GAAP financial measures, including Adjusted EPS and leverage ratio. An explanation of these non-GAAP financial measures as well as reconciliations to the most directly comparable GAAP financial measures can be found on the Investor Relations portion of our website.
Media contact
T.J. Crawford
212-457-0583
CrawfordT2@CVSHealth.com
Investor contact
Katie Durant
401-770-6442
Katherine.Durant@CVSHealth.com
Cover |
May 17, 2021 |
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Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | May 17, 2021 |
Entity File Number | 001-01011 |
Entity Registrant Name | CVS HEALTH CORPORATION |
Entity Central Index Key | 0000064803 |
Entity Tax Identification Number | 05-0494040 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | One CVS Drive |
Entity Address, City or Town | Woonsocket |
Entity Address, State or Province | RI |
Entity Address, Postal Zip Code | 02895 |
City Area Code | 401 |
Local Phone Number | 765-1500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | CVS |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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