CVS Health said Monday that four new members from the Glenview hedge fund will be added to its board … [+]
CFS health Said Monday Four new members will be added to the board of hedge fund Glenview Capital Management, an activist investor that has pushed for changes at the diversified healthcare giant.
Join the CVS Health board are: Leslie Norwalk, Larry Robbins, Guy Sansone and Doug Shulman, after “productive discussions with Glenview Capital Management,” CVS said in a statement. With the four new directors, the Board now consists of sixteen members, CVS said.
“In our conversations with Glenview leadership, we agreed that from our integrated businesses we can deliver greater value to all our stakeholders, including our customers, consumers, colleagues and shareholders,” said Roger Farah, executive chairman of the board from CVS. . “Having Leslie, Larry, Guy and Doug join our Board of Directors will add new thinking and deep market and industry experiences as we focus on driving improved financial and operational performance.”
A month ago, Glenview had been the subject of certain media reports pushing CVS management to break up the healthcare giant, but the hedge fund denied at the time that it was “pushing for a breakup.”
Since then, David Joyner, who replaced Karen S. Lynch as CEO of CVS, has given no indication that a split was on the horizon. On the company’s third-quarter earnings call earlier this month, Joyner pledged to continue improving CVS’s diversified portfolio of businesses, including drugstores and a range of outpatient and primary care clinics; the Caremark pharmacy benefits company and Aetna, which has more than 27 million medical members as the nation’s third largest health insurer.
CVS Health has struggled to control costs in its Aetna health insurance business, and its pharmacies have struggled, contributing to the company’s declining stock price.
“We have the leading PBM, the best-run pharmacy in this country, a legendary franchise through Aetna and industry-leading healthcare delivery resources,” Joyner told analysts last week. on the company’s third-quarter earnings call. “Our collection of companies and omnichannel capabilities enable us to lead the industry forward with innovative and market-moving solutions.”
On Monday, Joyner said: “Adding four experienced thought leaders to our board sharpens our focus on executing our strategy to build a world of health around every consumer while improving the total cost of care and the customer healthcare experience.” .”
Meanwhile, new Glenview board member and CEO Larry Robbins said Glenview executives “appreciate the Board of Directors working with us on a cooperative basis, allowing all energy to be productively focused on further strengthening this iconic company. ”
“We welcome the opportunity to join the Board of Directors, roll up our sleeves and link arms with the Board of Directors and the leadership team to drive sustainable, long-term value through continued customer-centric offerings, commitment to compliance and quality, disciplined underwriting and risk management, aligned incentives and optimal capital allocation,” said Robbins.