CVS Health Corp (NYSE:CVS) ticked up in pre-market trading after announcing the addition of four board members as part of a deal with activist investor Glenview Capital Management.
Larry Robbins, chief executive of the hedge fund, will join CVS’ board, alongside Leslie Norwalk, Guy Sansone, and Doug Shulman, leaving the company with 16 directors.
“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 boss Roger Farah said.
CVS added the move followed “productive engagement” with long-term investor Glenview, which holds a 31% stake in CVS.
Norwalk will join CVS’ health services committee, while Sansone adds to its audit committee and Shulman steps into a management planning and development committee role.
“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.
“We appreciate the board engaging with us on a cooperative basis that allows all energies to be productively dedicated towards further strengthening this iconic company.”
Shares climbed 1.5% to $54 in pre-market trading.