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Investing.com -- UnitedHealth Group (NYSE:UNH) stock dropped 2.5% following the announcement of a new Chief Financial Officer, as part of ongoing leadership changes at the healthcare giant.
The company named Wayne S. DeVeydt as its new CFO effective September 2, replacing John F. Rex who has held the position since 2016. Rex will transition to a role as strategic advisor to the CEO.
DeVeydt brings significant industry experience, having most recently served as a managing director and operating partner at Bain Capital. His previous roles include chairman and CEO of Surgery Partners (NASDAQ:SGRY) from 2018-2020, and notably, CFO at Anthem (now Elevance Health) (NYSE:ELV) from 2007 to 2016 after joining the company in 2005.
Bernstein analysts commented on the executive change: "We see this as a continuation of the turnaround program which new CEO Steve Hemsley has started. A change of CFO after the mis-pricing and operational missteps of UNH was to be expected and also occurred at CVS and Humana (NYSE:HUM). We see Wayne DeVeydt as a strong candidate for this role with both major MCO CFO experience (while at ELV) and extensive operating experience."
The leadership change comes as UnitedHealth works to address operational challenges that have affected the company’s performance.
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