CVS Health has expanded its board of directors to 16 members in response to shareholder pressure.
Glenview Capital Management, a hedge fund with a 1% stake in CVS Health, has expressed concerns about the company"s performance. The new board members, including Larry Robbins, CEO of Glenview Capital, are expected to bring fresh perspectives and industry experience to enhance CVS Health"s financial and operational performance.
CVS Health has faced challenges in recent quarters, including downward revisions of its financial forecasts and issues in its insurance business. David Joyner has taken over as CEO, succeeding Karen Lynch, as the company seeks to stabilize its operations.
The board expansion aligns with CVS Health"s ongoing efforts to address its challenges and reflects a continuation of its current strategy. The market has responded positively to the board expansion, with CVS Health"s shares rising over 3%. The involvement of experienced professionals on the board, along with strategic initiatives, may help CVS Health regain its footing in the healthcare industry.
The company"s engagement with shareholders like Glenview Capital highlights the importance of aligning corporate governance with investor expectations.