CVS Adjusts Succession Plan After Walmart Blocks Executive Appointment

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

February 1, 2011

Walmart’s successful injunction blocking CVS from hiring one of its former executives has the drug chain exploring new avenues for its corporate succession plan.

CVS was forced to drop Hank Mullany as its appointed president of CVS/pharmacy due to a non-compete agreement he had with Walmart, his former employer.

In the interim, the company appointed Mike Bloom executive vice president of merchandising and supply chain, and Scott Baker executive vice president of internal operations and real estate to lead CVS/pharmacy until a new retail president is named.

Most recently, the company asked Larry Merlo, president and COO, to assume the duties of CEO of CVS Caremark effective March 1. Thomas M. Ryan will remain non-executive chairman until his retirement at the company's annual meeting in May, CVS said in a statement. Bloom and Baker, will report to Merlo.

"As the company's succession planning process moves forward and I have assumed more enterprise-wide responsibilities, we made the decision to delegate the day-to-day operations of our retail business to two of our most senior retail executives," Merlo said. "What has remained clear throughout our search for a new President of CVS/pharmacy is that we are very fortunate to have a strong, stable group of senior leaders supporting our business. This team of individuals has helped shape our direction and deliver industry-leading results and has consistently demonstrated the highest levels of leadership and teamwork. I expect this success to continue into the future as Mike and Scott lead the retail organization."

Regarding it continuing search for a new president of CVS/pharmacy, Merlo said, "I am confident we will find the right individual for this important role."

In early December, CVS announced the appointment of Mullany as president of CVS/pharmacy, however Walmart quickly petitioned the court to issue a temporary restraining order to prevent Mullany from starting at CVS before a hearing on the complaint was heard Dec. 15, where Walmart emerged victorious.

Mullany was the former executive vice president of Walmart North responsible for the operation of 1,300 stores across 19 states. His move to CVS came just one month after he left Walmart, where he reportedly had a two-year non-compete agreement.

Read These Related Articles:

• CVS Long-Time Exec Joins Family Dollar
• Walmart Names New Chief Merchandising Officer

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases