CVS makes deal with Glenview Capital, adds four board seats

CVS Health has added Glenview Capital’s CEO and three others to its board in a deal with the hedge fund, a month after the health care retailer named a new CEO tasked with turning its finances around. 

Glenview CEO Larry Robbins will join the CVS board effective immediately, alongside three other directors—a decision which CVS said came after “productive discussions” with Glenview. The CVS board will expand to 16 members. The other new directors are Leslie Norwalk, Guy Sansone, and Doug Shulman. 

CVS has had a challenging year, driven both by struggles with its Medicare Advantage business (and issues of increased medical costs), as well as operational challenges. Following a strategic review last month, CVS announced it would lay off thousands of workers in a multibillion-dollar cost-cutting move.
The retailer has been facing pressure from investors, including Glenview, to increase its performance. Glenview currently has a large stake in the health-care conglomerate and was recently working with management in the lead-up to the departure of former CEO Karen Lynch, who stepped down last month.