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The
company said Monday that it expanded its board to 16 members
following “productive discussions” with shareholder Glenview
Capital Management.
The hedge fund holds about a 1% stake in the company according
to the data firm FactSet.
Glenview has said CVS Health, which has cut its forecast several
times this year, is operating well below its potential.
Glenview CEO Larry Robbins will take a seat on the CVS Health
board. The company also will add H2 Health Chairman and CEO Guy
Sansone, OneMain Holdings Chairman Doug Shulman and Leslie
Norwalk, a former acting administrator with the Centers for
Medicare and Medicaid Services.
The additional board members “will add new thinking and deep
market and industry experiences as we focus on driving greater
financial and operational performance,” CVS Health Executive
Chairman Roger Farah said in a statement.
The additions shouldn’t be surprising after Glenview acquired
its stake and made public comments on the company, Leerink
Partners analyst Michael Cherny said in a note.
He added that the board expansion doesn’t change anything
“beyond where we think CVS had already started to point the
ship.”
Woonsocket, Rhode Island-based CVS Health Corp. runs one of the
nation’s largest drugstore chains and a huge pharmacy benefit
management business that operates prescription drug coverage for
employers, insurers and other big clients. It also covers nearly
27 million people through its Aetna insurance arm.
The company has been focused on repairing its insurance
business, which has dragged on its overall performance for
several quarters. It’s also operating under new leadership, with
long-time company executive David Joyner replacing Karen Lynch
as CEO last month.
Company shares, which have been down most of this year, climbed
more than 3% to $54.96 in morning trading Monday.
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