11:07 AM EST, 11/18/2024 (MT Newswires) -- CVS Health ( CVS ) on Monday appointed four new members to its board of directors as part of an agreement reached with activist investor Glenview Capital Management following "productive discussions."

The healthcare company named Glenview chief executive, Larry Robbins, to its board along with Leslie Norwalk, Guy Sansone and Doug Shulman, taking its total member count to 16. Norwalk will join CVS Health's ( CVS ) health services committee, while Sansone and Shulman will join the audit committee and management planning and development committee, respectively.

CVS Health's ( CVS ) shares were up 4.2% in Monday trading.

In October, Glenview Capital said it was engaged in "constructive conversations" with CVS Health's ( CVS ) leadership to enhance the efficiency and governance of the company. Later in the month, the hedge fund expressed support for a "prompt" evolution of the company's board following the resignation of Karen Lynch as chief executive. The company promoted David Joyner to the top role in October.

"As we build momentum across our integrated model, we continue to take actions that are positive for our long-term success, while driving innovation and performance in our individual businesses and at CVS Health ( CVS ) overall," Joyner said in a Monday statement. "Adding four experienced thought leaders to our Board further sharpens our focus on executing against our strategy."

CVS Health ( CVS ) and Glenview entered into a confidentiality agreement under which the latter agreed to customary confidentiality, standstill and other provisions.

"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," according to Robbins. "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."

Earlier in November, CVS Health ( CVS ) reported third-quarter adjusted earnings of $1.09 per share, down from $2.21 the year before. The company said at the time it saw a decline in its health care benefits segment operations, due to continued utilization pressure and premium deficiency reserves of $1.1 billion related to anticipated losses in the current quarter within the company's Medicare and individual exchange businesses. Revenue for the three-month period ended September increased annually.

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