Cvs Health Corporation · NYSE:CVS
Cvs Health — Shareholder Meeting (May 2017)
14 slides from Cvs Health's shareholder meeting presentation, May 1, 2017
Slide 1: Shareholder Outreach 2017 Annual Meeting
Shareholder Outreach 2017 Annual Meeting May 10, 2017
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. By their nature, all forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking sta
Slide 3: The Most Extensive Suite of Leading Assets
Cost Quality Access …enabling us to deliver superior outcomes at a lower cost A F F O R D A B L E A C C E S S I B L E E F F E C T I V E OUR INTEGRATED ASSETS The Most Extensive Suite of Leading Assets… Patients Payors Providers Retail Mail Long-Term Care Infusion Medical Claims Editing Digital Retai
Slide 4: Our Integrated Model Drives More Affordable, Accessible and Effective Care
Our Integrated Model Drives More Affordable, Accessible and Effective Care Premier company with the ability to impact patients, payors and providers with innovative, channel-agnostic solutions Deep clinical expertise and insights enable us to help deliver superior outcomes at a lower cost Unmatched
Slide 5: 2016 Performance Highlights
2016 Performance Highlights + 9.3% YoY + 15.8% YoY Exceeded target by 22% + 6.2% YoY 2016 was another successful year for CVS Health as we continued to benefit from our focus on delivering affordable, accessible and effective health care In 2016 we delivered strong results across the enterprise, ena
Slide 6: Total Shareholder Return
Total Shareholder Return Industry Headwinds and Uncertainty Stemming from Political Environment Despite a decline in CVS Health’s stock price in 2016, we outperformed the S&P 500 Index and the S&P 500 Food & Staples Retail Index on a five-year basis The rapidly changing health care landscape include
Slide 7: CEO Compensation Plan Design
CEO Compensation Plan Design 2016 Reported CEO Pay Mix 89% Performance Aligned 79% Long-Term Element Metrics Annual (21%) Base Salary – Annual Cash Incentive Adjusted Operating Profit Retail Customer Service / PBM Client Satisfaction Long-Term (79%) Long-Term Incentive Plan Return on Net Assets (RoN
Slide 8: Performance Metrics Support Corporate Strategy and Long-Term Growth
Performance Metrics Support Corporate Strategy and Long-Term Growth MIP Adjusted Operating Profit Annual Cash Incentive Retail Customer Service / PBM Client Satisfaction Return on Net Assets (RoNA) TSR performance modifier based on percentile ranking of CVS Health versus the S&P 500 index Long-Term
Slide 9: Annual Program Sets Challenging Targets for our Executives
Actual Award $2,382,000 The Committee exercised negative discretion in determining the final award by reducing the formulaic results by an additional 10% based on its evaluation of the CEO’s performance Annual Program Sets Challenging Targets for our Executives Under the Executive Incentive Plan (EI
Slide 10: Substantial Portion of Long-Term Incentives are Performance-Based
Substantial Portion of Long-Term Incentives are Performance-Based Target Long-Term Incentive Components Stock Options 7 year term Vest annually over 4 years Restricted Stock Units 5 year vesting period; 50% vests after Year 3, 50% at Year 5 Long-Term Incentive Plan RoNA and TSR modifier apply to 201
Slide 11: Compensation Program Informed by Shareholder Outreach
Compensation Program Informed by Shareholder Outreach Proactive Changes to Our Compensation Plan Based on Shareholder Feedback Reduced award cap on our Executive Incentive Plan (EIP) and implemented guardrails for limited use of positive discretion Revised the TSR modifier for the 2017-2019 LTIP by
Slide 12: Diverse, Highly Qualified and Independent Board
Diverse, Highly Qualified and Independent Board Balance of Skills and Experience Business Development and Corporate Transactions Corporate Governance Health Care and Regulated Industries Legal and Regulatory Compliance Risk Management International Business Operations Consumer Products and Services
Slide 13: Best in Class Governance and Compensation Practices
We apply leading executive compensation practices and our program motivates executive officers to take personal responsibility for the performance of CVS Health Governance Practices Enhance Effective Oversight Best in Class Governance and Compensation Governance Practices We recommend shareholders v
Slide 14: We Ask for Your Vote at the 2017 Annual Meeting
We Ask for Your Vote at the 2017 Annual Meeting FOR the election of the 12 director nominees to serve on the Board FOR the ratification of appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for fiscal 2017 FOR the Say on Pay advisory vote on the approval