Embattled pharmaceutical chain CVS Health (CVS) has agreed to give four seats on its board of directors to activist investor Glenview Capital.
News of the board seats comes weeks after the retail pharmacy chain fired its former chief executive officer (CEO) Karen Lynch amid continued underperformance of the company’s stock.
CVS said that Glenview Capital CEO Larry Robbins will join its board effective immediately, alongside three other directors, which CVS said emerged from a “productive discussion” with the activist shareholder.
The board of directors at CVS is being expanded to 16 members to accommodate the new appointees. The other new directors are Leslie Norwalk, Guy Sansone and Doug Schulman.
Glenview Capital has amassed a sizable stake in CVS stock and is agitating for change, including helping to precipitate Lynch’s removal as CEO.
CVS has had a challenging year, driven in part by difficulties with its Medicare Advantage business.
The company has launched a strategic review and begun to layoff workers as it seeks to achieve billions of dollars in cost cuts.
The stock of CVS has declined 34% this year to trade at $53.19 U.S. per share.