- Push-out Score determined
- After almost 10 years in the position
- Accolades, praise and thanks for Merlo
- Karen Lynch taking over
- Merlo said 119 words
(exechange) — Woonsocket, Rhode Island, November 6, 2020 — Larry Merlo, chief executive of CVS Health, leaves. As announced by CVS Health Corp. in a news release on Friday, November 6, 2020, Larry J. Merlo leaves his post as chief executive officer of the healthcare company after almost 10 years in the role, effective February 1, 2021.
Larry Merlo’s duties as CEO will be taken over by Karen S. Lynch, currently President, Aetna and Executive Vice President, CVS Health.
“Thorough, multi-year process”
Larry Merlo’s departure from the CEO post is explained as follows. David W. Dorman, Chair of the Board of CVS Health Corporation, said: “This leadership transition comes at the right time for CVS Health. This month marks the two year anniversary as one company, with our foundation clearly established and significant positive momentum across the company. As Larry has been transparent with us about his overall plans, we were able to put a thorough, multi-year process in place to consider and evaluate internal and external candidates. That process led to the selection of Karen Lynch. Larry’s collaboration with Karen in the coming months will ensure an effective leadership transition.”
Precise information regarding Larry Merlo’s future plans was not immediately available.
CVS Health said: “Larry J. Merlo will transition from the President and CEO role on February 1, 2021, after beginning his career with the company as a community pharmacist more than 40 years ago, and serving as President and CEO for a decade.”
Share price decline since November 2015
The announcement follows a decline in CVS Health Corp.’s share price of 39% since November 2015.
Chaired by David W. Dorman
David W. Dorman serves as CVS Health Corp.’s Chairman.
Dorman has been the Chair of the Board of CVS Health Corporation since May 2011. He has also been a Founding Partner of Centerview Capital Technology Fund, a private investment firm, since July 2013.
In the position of CEO since 2011
Larry Merlo became CEO of the Company in 2011.
Merlo will continue to serve on CVS Health’s Board of Directors until the company’s next Annual Meeting of Stockholders in May 2021, and as Strategic Advisor to assist with the transition until his retirement on May 31, 2021.
Merlo has been Chief Executive Officer of CVS Health Corporation since March 2011 and President of CVS Health Corporation since May 2010.
Merlo formerly served as Chief Operating Officer of CVS Health Corporation from May 2010 through March 2011 and was President of CVS Pharmacy from January 2007 through May 2010, and Executive Vice President – Stores from April 2000 to January 2007.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to CVS Health and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 45.2020 ($).