CVS Health has recently appointed four new board members, including the CEO of a hedge fund that has been critical of the company's performance. The decision to expand the board to 16 members came after discussions with shareholder Glenview Capital Management, which holds a 1% stake in the company.
Glenview Capital Management has expressed concerns about CVS Health operating below its potential, leading to multiple forecast cuts this year. Glenview's CEO, Larry Robbins, will now join the CVS Health board along with 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's Executive Chairman, Roger Farah, stated that the new board members will bring fresh perspectives and extensive market and industry experience to help drive improved financial and operational performance.
Analysts noted that the addition of new board members was expected following Glenview's acquisition of a stake in the company and public comments on its performance. However, they believe that this move does not signify a significant shift beyond the direction CVS Health was already heading.
Based in Woonsocket, Rhode Island, CVS Health Corp. operates a large drugstore chain and pharmacy benefit management business, which provides prescription drug coverage for various clients. The company also serves nearly 27 million individuals through its Aetna insurance arm.
CVS Health has been working on revitalizing its insurance business, which has been impacting its overall performance in recent quarters. The company is also under new leadership, with David Joyner taking over as CEO from Karen Lynch last month.
Despite facing challenges and a decline in share value throughout the year, CVS Health's stock rose over 3% to $54.96 in morning trading on Monday.
