Chair C. David Brown, Member Fernando Aguirre, Member Anne M. Finucane, Member Michael F. Mahoney, Member Douglas H. Shulman
Download Management Planning and Development Committee Charter
CVS HEALTH CORPORATION
A Delaware corporation
(the "Company")
Management Planning and Development Committee Charter
Approved as of March 18, 2026
Purpose
The Management Planning and Development Committee (the “Committee”) was created by the Board of Directors of the Company (the “Board”) to:
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oversee the Company’s compensation and benefits plans and policies generally;
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evaluate the performance of the Company’s (i) Chief Executive Officer (the “CEO”), (ii) other “officers” within the meaning of Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the CEO, the “Section 16 Officers”), and (iii) other designated officers (collectively with the Section 16 Officers, the “Designated Officers”);
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in consultation with the other independent directors of the Company, including the Lead Independent Director (if any), oversee, determine and approve the compensation for the Company’s CEO;
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oversee, determine and approve the compensation for the Designated Officers;
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if the Chair of the Board is a Section 16 Officer other than the CEO, evaluate the performance of the Chair of the Board and oversee and set compensation for the Chair of the Board, in consultation with the other independent directors of the Company, including the Lead Independent Director, and report the results of such review and any action the Committee takes with respect thereto to the Board;
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review and recommend to the Board compensation (including equity-based compensation) for the Company’s non-employee directors;
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prepare the compensation committee report to be included in the Company’s annual proxy statement; and
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assist with the Board and management’s oversight of the Company’s human capital management function, and report significant matters related thereto to the Board as appropriate.
Membership
The Committee shall consist of at least three members, comprised solely of independent directors meeting the independence requirements of the New York Stock Exchange (“NYSE”) and the Securities and Exchange Commission (the “SEC”) as promulgated from time to time for membership on a company’s compensation committee. Furthermore, at least two members of the Committee shall qualify as “non-employee” directors under Rule 16b-3 promulgated under the Exchange Act. The Nominating and Corporate Governance Committee shall recommend nominees for appointment to the Committee annually and as vacancies or newly created positions occur. Committee members shall be appointed by the Board and may be removed by the Board at any time and for any reason. The Nominating and Corporate Governance Committee shall recommend to the Board, and the Board shall designate, the Chair of the Committee.
Procedures
The Committee shall meet as often as it determines is appropriate to carry out its responsibilities under this charter, but not less frequently than four times a year. The Chair of the Committee, in consultation with the other Committee members, shall determine the frequency and length of the committee meetings and shall set meeting agendas consistent with this charter. The Committee shall maintain minutes of its meetings and make available copies of such minutes to the Board. The Secretary of the Company shall maintain copies of all minutes as permanent records of the Company. No executive should attend that portion of any meeting where such executive’s performance or compensation is discussed, unless specifically invited by the Committee.
Authority
General
The Committee has the sole authority to retain and terminate any advisor, including any legal counsel, accountant or compensation consultant, that the Committee may consider necessary, without conferring with or obtaining the approval of management or the full Board. The Committee has the sole authority to approve all of such advisors’ fees and other retention terms, and shall have available appropriate funding from the Company for payment thereof. The Committee shall monitor the independence of advisors and take into account the independence of advisors in a manner consistent with any applicable requirements of the NYSE, as well as any other criteria it deems appropriate. The Committee is directly responsible for the appointment, compensation and oversight of any such advisor’s work.
Delegation
The Committee may delegate its authority to one or more subcommittees or to the Chair of the Committee when it deems appropriate and in the best interests of the Company. The Committee shall not delegate to a subcommittee or the Chair of the Committee any power or authority required by any law, regulation or listing standard to be exercised by the Committee as a whole.
The Committee may delegate to the Chair of the Committee or, in his or her absence, to one or more of its other members, the authority to make grants and awards of stock rights or options to any individual who is neither a Designated Officer or the CEO under such of the Company’s incentive compensation or other equity-based plans as the Committee deems appropriate and in accordance with the terms of such plans.
The Committee may delegate its authority hereunder relating to compensation practices for employees other than the CEO, Designated Officers and non-employee directors of the Company, and may fully delegate authority relating to matters it deems to be ministerial, in each case, to the extent it deems appropriate and consistent with law and customary practice.
Responsibilities
In addition to any other responsibilities that may be assigned from time to time by the Board, the Committee is responsible for the following matters:
Compensation and Benefits Policies
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- The Committee shall review the Company’s compensation and benefits plans and policies generally, including any incentive compensation plans and equity-based plans of the Company (subject, if applicable, to stockholder ratification or approval). In reviewing such compensation and benefits policies, the Committee may consider the recruitment, development, promotion, retention and compensation of senior executives and other employees of the Company and any other factors that it deems appropriate, including compensation of senior executives at peer companies.
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In connection with the Committee’s review as described above, the Committee shall report the results of such review and any action it takes with respect to the Company’s compensation and benefits policies to the Board, and shall make recommendations to the Board with respect to equity-based plans that are subject to Board approval.
Recoupment Policy
- The Committee shall approve, or recommend to the Board for approval, the creation or revision of any recoupment or clawback policy allowing the Company to recoup compensation paid to current and/or former employees, if and as the Committee determines to be necessary or appropriate, or as required by applicable law or NYSE requirements, and oversee the application of any such recoupment policy, to the extent set forth therein.
Executive Compensation
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- The Committee shall review and determine the individuals who are, in addition to the Section 16 Officers, Designated Officers of the Company from time to time.
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The Committee shall (i) determine and approve for each of the Designated Officers of the Company, and (ii) in consultation with the other independent directors of the Company, including the Lead Independent Director, if any, shall determine and approve for the CEO, each such individual’s (A) annual base salary level, (B) annual incentive compensation, (C) long-term incentive compensation, (D) employment, severance, change-in-control and similar agreements, if any, and (E) any other compensation, perquisites or special benefit items. In so reviewing, determining and approving executive compensation, the Committee shall, among other things, conduct the following evaluations:
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identify, review and approve corporate goals and objectives relevant to executive compensation, including those relevant to the compensation of the CEO and the Designated Officers;
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in consultation with the other independent directors of the Company, including the Lead Independent Director (if any), evaluate the CEO’s performance in light of such goals and objectives and determine and approve the CEO’s compensation based on such evaluation and such other factors as the Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation);
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if the Chair of the Board is neither a Section 16 Officer nor the CEO, in consultation with the other independent directors of the Company, including the Lead Independent Director (if any), evaluate the Chair of the Board’s performance in light of such goals and objectives and determine and approve the Chair of the Board’s compensation based on such evaluation and such other factors as the Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation);
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evaluate each Designated Officer’s performance in light of applicable goals and objectives and set each Designated Officer’s compensation based on such evaluation and such other factors as the Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation);
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in consultation with the other independent directors of the Company, including the Lead Independent Director (if any), determine any long- term incentive component of the CEO’s compensation taking into account awards given to the CEO in past years, the Company’s performance, relative shareholder return, the value of similar incentive awards at comparable companies (including, but not limited to, the Company’s peer group), and such other factors as the Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation);
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determine any long-term incentive component of each Designated Officer’s compensation based on awards given to such executive in past years, the Company’s performance, relative shareholder return, the value of similar incentive awards relative to such targets at comparable companies (including, but not limited to, the Company’s peer group), and such other factors as the Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation);
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review external surveys and compensation studies to assess the competitiveness of compensation for the CEO and the Designated Officers, including the identification of peer companies that should be used for purposes of determining competitive compensation packages for the CEO and the Designated Officers; and
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to the extent applicable, certify that performance goals and objectives for performance-based compensation have been satisfied.
Director Compensation
The Committee shall review the form and amount of compensation arrangements (including equity-based compensation) for the Company’s non-employee directors. Changes in non-employee director compensation, if any, should be made at the recommendation of the Committee, with full discussion and approval by the Board.
Stock Ownership Guidelines
The Committee shall review, at least annually, compliance with the Company’s stock ownership guidelines by the Company’s non-employee directors, CEO and Section 16 Officers, and shall review the Company’s stock ownership guidelines from time to time as the Committee deems necessary or appropriate, and recommend any proposed changes to the Board.
Say on Pay Votes
The Committee shall review the results of the Company’s advisory stockholder votes on executive compensation (“Say on Pay Votes”) and the frequency of Say on Pay Votes, as well as the results of other Company stockholder votes with respect to compensation-related matters, to determine any appropriate response, outreach, disclosure or other action.
Human Capital Management
The Committee shall review and discuss with management or other committees of the Board the Company’s strategies, initiatives and programs relating to human capital management, including with respect to attracting, developing, retaining and motivating management and employees, employee relations and workplace safety and culture.
Disclosure
The Committee shall prepare the Compensation Committee Report required by SEC rules to be included in the Company’s annual proxy statement or Annual Report on Form 10-K. The Committee shall review and discuss the Company’s Compensation Discussion and Analysis as required by SEC rules (“CD&A”) with management and provide a recommendation to the Board regarding the inclusion of the CD&A within the Company’s proxy statement or Annual Report on Form 10-K.
Risk Assessment
The Committee shall review and assess, on an annual basis, risks arising from the Company’s compensation policies and practices for its employees and whether any such risks are reasonably likely to have a material adverse effect on the Company.
Reporting to the Board
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- The Committee shall report to the Board periodically and at least annually. These reports shall include a review of any recommendations or issues that arise with respect to Company compensation and benefits policies, executive compensation and any other matters that the Committee deems appropriate or is requested to be included by the Board. In addition, the Committee shall, in consultation with the other independent directors of the Company, evaluate and then present its evaluation of the performance of the senior management of the Company to the full Board.
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At least annually, the Committee shall evaluate its own performance and the Chair of this Committee shall report to the Board on such evaluation.
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The Committee shall periodically review and assess the adequacy of this charter and recommend any proposed changes to the Board for approval.