WOONSOCKET, R.I. — In what it says is a continuing commitment to investing in the growth and success of its employees, CVS Health on Thursday announced three major programs that will enable employees to share in the tax savings created by the U.S. Tax Cuts and Jobs Act.
The company said in a statement on their website that the improvements in employee wages and benefits, which are long-term and sustainable compensation investments, total $425 million annually and create continued growth opportunities for the company and its employees. The programs announced today include an increase in the starting wage rate for hourly employees to $11 an hour, effective in April.
Meanwhile, CVH Health’s earnings nearly doubled in the last quarter of 2017, fueled by a $1.5 billion tax benefit that helped counter a flat performance from its drugstores.
The company also said Thursday that it will use part of its federal tax overhaul benefit to beef up employee benefits.
In the fourth quarter, the drugstore chain and pharmacy benefits manager earned $3.29 billion. Results adjusted to exclude the tax break totaled $1.92 per share. Revenue climbed 5 percent to $48.38 billion.
That topped Wall Street’s expectations. Analysts surveyed by FactSet expected earnings of $1.89 per share on $47.54 billion in revenue.
CVS Health Corp. booked $56 million in financing costs for its planned purchase of the insurer Aetna Inc., a $69-billion deal announced in December.
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