CVS Health Appoints Steve Nelson as Aetna President

CVS Health has appointed Steve Nelson as president of Aetna, following the resignation of CEO Karen Lynch amid rising medical costs that led to disappointing earnings. Nelson, a veteran from UnitedHealth Group, is expected to address the financial challenges that have attracted scrutiny from investors, including activist hedge fund Glenview Capital Management. Alongside him, Prem Shah has been promoted to group president, tasked with enhancing performance across CVS’s pharmacy and health services divisions. CVS reported a third-quarter adjusted profit of $1.09 per share, substantially lower than the previous year's $2.21, driven by unexpected medical service spending. The company also announced $1.2 billion in restructuring charges due to layoffs and business closures, while its medical benefit ratio significantly increased to 95.2%. CEO David Joyner did not provide financial guidance for 2024 or 2025 in his first earnings report since taking charge.