CVS Health Stock In Focus After Board Appoints 4 New Members Following Talks With Glenview Capital: Retail’s Not Sold

Shares of CVS Health Corp ($CVS) were in focus on Monday morning after the firm announced new board appointments following discussions with Glenview Capital Management.

Shares of CVS were trading over 1.5% in pre-market trading following the announcement.

The appointments come after Glenview Capital Management reportedly bought 2.8 million shares of CVS Health during the third quarter, raising its stake by 31%.

The board announced the appointment of Leslie Norwalk, Larry Robbins, Guy Sansone, and Doug Shulman and said that while Norwalk will join the Health Services Committee, Sansone will join the Audit Committee, and Shulman will join the Management Planning and Development Committee.

Robbins is the Founder, Portfolio Manager, and CEO of Glenview Capital Management while Sansone is currently the Chairman and the CEO of H2 Health.

Shulman has been the Chairman of OneMain Holdings, Inc. since January 2021 while Norwalk serves as Strategic Counsel to healthcare companies through her roles at Epstein Becker Green, EBG Advisors, and National Health Advisors.

Executive Chair of the board Roger Farah said in the firm’s discussions with the leadership at Glenview, the company agreed that it can deliver greater value from its integrated businesses to all of its stakeholders. "Having Leslie, Larry, Guy, and Doug join our Board will add new thinking and deep market and industry experiences as we focus on driving greater financial and operational performance.”

With the latest appointments, CVS’ board now comprises 16 members.

Following the announcement, retail sentiment on Stocktwits dipped into the ‘bearish’ territory (43/100) from ‘bullish’ a day ago.

CVS Health’s Sentiment Meter and Message Volume as of 8:10 a.m. ET on Nov. 18, 2024 | Source: Stocktwits

CVS Health had finalized an enterprise-wide restructuring plan aimed at streamlining and simplifying the organization, improving efficiency and reducing costs. As part of this plan, the firm had recorded restructuring charges of approximately $1.2 billion.

Recently, the company had announced certain leadership appointments. Prem Shah was appointed as the Group President while Steve Nelson was appointed as the President of insurance entity Aetna.