Rite Aid overhauls board after failed merger
Rite Aid announced a number of changes to its board on Thursday, nearly two months after the chain and Albertsons Companies called off their proposed $24 billion merger.
The drugstore company is separating the positions of CEO and chairman. Under the new makeup, Bruce Bodaken, currently a director, will become chairman. John Standley will remain CEO. The change is effective at the company’s annual stockholders meeting, which takes place Oct. 30, 2018.
Additionally, Rite Aid nominated three independent directors — Robert E. Knowling Jr., Louis P. Miramontes and Arun Nayar — to the board. They will stand for nomination at the Oct. 30 meeting. (The three nominated directors will replace current directors David Jessick, Myrtle Potter and Frank Savage, who won’t stand for re-election, Rite Aid said.)
The board changes come as the company is working to bolster its standalone strategy.
“These changes will significantly strengthen and enhance the Board's governance oversight and reflect our commitment to aligning Rite Aid's interests with those of stockholders," said Bodaken. "Since terminating the transaction with Albertsons, we have engaged directly with many of our largest stockholders. Based on the valuable insight and input we have received, we are accelerating our effort to refresh the Board. We are pleased to welcome Bob, Lou and Arun, and believe their fresh perspectives will be significant assets as we continue to oversee the development and implementation of our strategy to best position Rite Aid to create long-term value for stockholders."
The drugstore company is separating the positions of CEO and chairman. Under the new makeup, Bruce Bodaken, currently a director, will become chairman. John Standley will remain CEO. The change is effective at the company’s annual stockholders meeting, which takes place Oct. 30, 2018.
Additionally, Rite Aid nominated three independent directors — Robert E. Knowling Jr., Louis P. Miramontes and Arun Nayar — to the board. They will stand for nomination at the Oct. 30 meeting. (The three nominated directors will replace current directors David Jessick, Myrtle Potter and Frank Savage, who won’t stand for re-election, Rite Aid said.)
The board changes come as the company is working to bolster its standalone strategy.
“These changes will significantly strengthen and enhance the Board's governance oversight and reflect our commitment to aligning Rite Aid's interests with those of stockholders," said Bodaken. "Since terminating the transaction with Albertsons, we have engaged directly with many of our largest stockholders. Based on the valuable insight and input we have received, we are accelerating our effort to refresh the Board. We are pleased to welcome Bob, Lou and Arun, and believe their fresh perspectives will be significant assets as we continue to oversee the development and implementation of our strategy to best position Rite Aid to create long-term value for stockholders."