December 6, 2010
Walmart is attempting to block the appointment of Hank Mullany as president of CVS/pharmacy due to a non-compete agreement the world’s largest retailer has with its former employee, according to Planet Retail.
On Friday, CVS announced that Mullany would assume the executive role effective Dec. 6, however Walmart petitioned the court to issue a temporary restraining order to prevent Mullany from starting at CVS before a hearing on the complaint, which is reportedly scheduled for Dec. 15.
Mullany, who was the former executive vice president of Walmart North responsible for the operation of 1,300 stores across 19 states, was very involved in Walmart’s pilot ‘smaller-format’ program as well as merchandising, store layout, pricing strategies, and real estate issues.
Mullany’s move to CVS comes just one month after he left Walmart, which reportedly has a two-year non-compete agreement with its former executive. Walmart filed its complaint with the Delaware Chancery Court, according to the report.
Mullany was slate to succeed Larry Merlo as president of CVS. The move is part of the corporate succession plan announced last May in which Tom Ryan will retire as CEO prior to the next annual meeting and Merlo will step up as CEO, according to a CVS statement.
"Hank is the right candidate to fill this role," Ryan said prior to the Walmart block. "His broad base of retail experience will further our mission to provide customers with expert care and innovative solutions. Hank's proven track record as a leader will continue to set us apart in today's competitive marketplace."