October 11, 2018

Aetna CFO Guertin to step down; CVS board expanded

Flickr Creative Commons | Chez Julius Livre 1
Flickr Creative Commons | Chez Julius Livre 1
Aetna headquarters in Hartford

CVS Health on Wednesday evening announced a major change to its C-suite team, just hours after the U.S. Department of Justice (DOJ) conditionally approved its proposed $69 billion acquisition of Hartford health insurer Aetna.

Aetna Chief Financial Officer Shawn M. Guertin, expected to become CFO of CVS Health, will instead "step away for personal and family reasons" in June 2019, CVS said.

Eva C. Boratto, currently CVS Health's executive vice president, controller and chief accounting officer, will succeed Guertin. Boratto joined CVS in 2010 as senior vice president of pharmacy benefit manager (PBM) finance.

DOJ's clearance is contingent on Aetna selling its standalone Medicare Part D prescription drug plan business to WellCare Health Plans Inc. The federal antitrust enforcers said the divestiture resolves its competitive concerns.

The proposed deal, expected to close in the early part of the fourth quarter, is still subject to state regulatory approvals.

In other announcements Wednesday, CVS named three Aetna board members -- Edward J. Ludwig, Fernando Aguirre and Roger N. Farah -- to its now 16-member board in addition to Mark T. Bertolini, Aetna's current CEO and chairman.

Ludwig has served on Aetna's board since 2003 and as its lead director since 2012. He worked over 30 years in the medical technology industry, including a decade as CEO and chairman of New Jersey-based Becton, Dickinson and Co.

Aguirre also has more than 30 years experience in several senior positions, including tenures as CEO and chairman of Chiquita Brands International Inc. and several positions at The Procter & Gamble Co. He has served on Aetna's board since 2011.

Also an Aetna board member since 2007, Farah spent 40-plus years in the retail sector as co-CEO, director and executive director of Tory Burch LLC; and president, chief operating officer, director and vice chairman of Ralph Lauren Corp. He currently serves as chair on Tiffany & Co.'s board.

Aetna will operate as a standalone business under CVS Health when the proposed acquisition closes. The insurer's management team will be led by President Karen S. Lynch, who will replace Bertolini.

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