CVS Health Expands Board with New Faces and Fresh Ideas

CVS Health has bolstered its board of directors, adding four new members, including the CEO of a hedge fund that has been vocal about the company’s struggles. The latest development comes after productive discussions with shareholder Glenview Capital Management, which holds about a 1% stake in CVS Health. The company has previously stated that CVS Health is not operating at its full potential, despite cutting its forecast multiple times this year. Joining the board are Larry Robbins, CEO of Glenview Capital Management, Guy Sansone, Chairman and CEO of H2 Health, Doug Shulman, Chairman of OneMain Holdings, and Leslie Norwalk, a former acting administrator with the Centers for Medicare and Medicaid Services. CVS Health Executive Chairman Roger Farah expressed that these additions will bring new perspectives and industry experiences to help improve financial and operational performance. Analysts see this move as a natural progression following Glenview’s acquisition of a stake in the company and its public comments. While this board expansion doesn’t change the company’s direction significantly, it aligns with the steps CVS Health has already taken to address its challenges. Based in Woonsocket, Rhode Island, CVS Health operates one of the largest drugstore chains and a large pharmacy benefit management business. It also provides insurance coverage to nearly 27 million people through its Aetna arm. The company has been working to improve its insurance business, which has been a drag on overall performance. Additionally, it has new leadership with David Joyner taking over as CEO last month. Shares of CVS Health, which have seen a decline this year, rose over 3% in morning trading on Monday to $54. 96.