David Joyner, a longtime CVS executive, speaks during a Senate Health, Education, Labor and Pensions Committee hearing in Washington, D.C., on May 10, 2023.
- CVS Health struck a deal with dissident Glenview Capital, giving the investor four board seats.
- Glenview had been pushing for changes at the health-care giant and had met with former CEO Karen Lynch prior to her ouster.
- CVS has struggled this year, due to difficulties with its Medicare Advantage business, and announced a big cost-cutting drive.
CVS Health announced on Monday that it struck a deal with dissident investor Glenview Capital for four board seats, just a few weeks after the health-care giant ousted former CEO Karen Lynch.
Glenview CEO Larry Robbins will join the CVS board effective immediately, alongside three other directors, which CVS said emerged from a "productive discussion" with Glenview. CVS' board will expand to 16 members.
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"In our discussions with the leadership at Glenview, we agreed that we can deliver greater value from our integrated businesses to all of our stakeholders," CVS Chair Roger Farah said in a release.
The other new directors are Leslie Norwalk, Guy Sansone and Doug Shulman. Glenview amassed a sizable stake in the health-care conglomerate and worked with management in the lead-up to Lynch's ouster.
"We appreciate the board engaging with us on a cooperative basis that allows all energies to be productively dedicated towards further strengthening this iconic company," Glenview's Robbins said.
Money Report
CVS has had a challenging year, driven in part by difficulties with its Medicare Advantage business. It initiated a strategic review this fall and has begun to lay off workers in a multibillion-dollar cost-cutting drive.
Several activist fights this season have resulted in settlements. Elliott Management struck a deal with Southwest Airlines in October in which the activist fund secured six seats on the carrier's board. Activist Ancora also settled with railroad Norfolk Southern this month, averting a second proxy fight following the firing of CEO Alan Shaw.
