Glenview, an important shareholder, was engaged productively CVS.US board adds four new members
1min read Following "productive engagement" with activist investor Glenview Capital Management, CVS Health (US) has added four new board members.
"In our discussions with the Glenview leadership, we agreed that we could create greater value for all stakeholders, including our customers, consumers, colleagues and shareholders, through our combined businesses," said Roger Farah, executive chairman of CVS Health. Glenview bought 2.8 million shares of CVS Health in the third quarter, increasing its stake in the company by 31%.
The new board members include Leslie Norwalk, Guy Sansone, Doug Shulman and Glenview CEO Larry Robbins. Norwalk will join the health services committee, Sansone will join the audit committee and Shulman will join the management planning and development committee. With the addition of the four new board members, the CVS Health board now has 16 members.
Earlier this month, CVS Health reported third-quarter revenue of $9.54 billion, up 6.3% year over year, topping market expectations by $2.7 billion, as its pharmacy and consumer health and healthcare benefits segments performed well. The pharmacy and consumer health segment generated $3.24 billion in revenue, up about 12% year over year; the Aetna healthcare benefits segment generated $3.3 billion in revenue, up about 26% year over year.
As of writing, CVS Health rose more than 2% before the opening of the U.S. stock market on Monday.