CVS Adds Four Board Members in Deal with Activist Hedge Fund

CVS Health has appointed four new members to its board following an agreement with activist investor Glenview Capital Management.

Larry Robbins, the hedge fund’s CEO, will join CVS’ board alongside Leslie Norwalk, Guy Sansone, and Doug Shulman, leaving the company with 16 directors.

CVS said the move came after “productive engagement” with long-term investor Glenview, which bought 2.8 million CVS shares in the third quarter, increasing its holding in the pharmacy chain by 31%.

“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 executive chairman of the board, Roger Farah, said.

Norwalk will join the health services committee, Sansone will join the audit committee, and Shulman will join the management planning and development committee.

“We welcome the opportunity to join the board, roll up our sleeves and lock arms with the board and leadership team to drive long-term, sustainable value,” Robbins added.

In connection, the CVS entered into a confidentiality agreement with Glenview under which the fund has agreed to customary confidentiality, standstill and other provisions.