Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(e) On May 18, 2021, CVS Health Corporation ("CVS Health", and together with its
subsidiaries, the "Company") announced that Eva C. Boratto, former Executive
Vice President - Chief Financial Officer of CVS Health, would be stepping down
from that role effective May 28, 2021. At the Company's request to assist in
transition and for strategic support, Ms. Boratto has agreed to remain with the
Company in a senior advisory role to CVS Health's President and Chief Executive
Officer Karen S. Lynch through no later than December 1, 2021 (such date, the
"Separation Date").
On June 9, 2021, CVS Pharmacy, Inc., a wholly-owned subsidiary of CVS Health,
entered into an agreement (the "Agreement") with Ms. Boratto to memorialize the
terms of her continued service and the parties' mutual agreement to separate.
Under the Agreement, the Company has agreed to provide Ms. Boratto with 22
months of continued base salary following the Separation Date (the "Salary
Continuation Period"). Ms. Boratto's stock options will continue to vest and
remain exercisable for up to three-years following the Separation Date. Her
restricted stock unit award will continue to vest through the end of the Salary
Continuation Period and be settled on the original vesting date, and her
outstanding performance stock unit awards will vest on a pro-rated basis through
the Separation Date and be settled on their original vesting dates. Under the
Agreement, Ms. Boratto also is entitled to a pro-rated bonus for performance
year 2021 based on Company performance and reimbursement of certain expenses in
the amount of up to $90,000 in connection with the transition.
The Agreement also contains a release of claims against the Company, with
customary confidentiality and cooperation covenants, and incorporates by
reference any other covenants to which Ms. Boratto already is subject, including
the non-competition and non-solicitation covenants set forth in her restrictive
covenant agreement, as amended pursuant to the Agreement.
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