CEO of activist hedge fund among 4 new CVS Health board members

Contributed CVS Health owns and operates CVS Pharmacies.

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CVS Health, the parent company of Hartford health insurer Aetna, said Monday it has appointed four new members to its board, including Larry Robbins, CEO of activist hedge fund Glenview Capital Management, which holds a large stake in the company.

In a news release, CVS said the additions to the board were the result of “productive discussions” with Glenview Capital. The hedge fund holds $700 million in CVS stock and has been pushing CVS to make changes in the way it operates.

Last month, the company replaced Karen Lynch, who formerly led Hartford health insurer Aetna, as CVS Health’s CEO.

In addition to Robbins, who also serves as the hedge fund’s portfolio manager, CVS named Leslie Norwalk, Guy Sansone and Doug Shulman to the board. The additions expand the board to 16 members.

Norwalk serves as strategic counsel to healthcare companies through her roles at Epstein Becker Green, EBG Advisors and National Health Advisors. She also advises several private equity firms.

Sansone is currently chairman and CEO of H2 Health, a regional provider of physical rehabilitation services and clinician staffing solutions.

Shulman has been the chairman of OneMain Holdings Inc. since January 2021 and has served as CEO since 2018.

In addition to serving on the board, Norwalk will join the board’s health services committee, Sansone will join the audit committee, and Shulman will join the management planning and development committee, CVS said.

According to CNBC, CVS Health’s decision to add the board members is part of a larger agreement between the two parties. As part of that agreement, Glenview has entered into a confidentiality agreement that covers customary confidentiality, standstill, and other provisions.

CNBC said investors have raised concerns about CVS’ performance over the past several quarters, which includes its health insurance division pulling down its recent earnings reports. The company’s stock has fallen nearly 17% over the past 12 months. It was up more than 5% in morning trading Monday, however, following the announcement of the additions to the board.

In addition to replacing its CEO, CVS Health has also enacted a strategic review and ousted Brian Kane, the CEO of its subsidiary Aetna Inc., less than a year after he was appointed. Earlier this month, CVS named Steve Nelson, a former CEO of UnitedHealthcare, to succeed Kane as Aetna president.