WOONSOCKET, R.I. – The next chapter for CVS Caremark officially is under way as the company announced on Monday the next stage of its previously announced transition plan and officially named Larry Merlo, president and COO, as CEO, effective March. 1.
Tom Ryan, chairman, president and CEO, will remain nonexecutive chairman until his retirement at the company’s annual meeting of shareholders in May.
“Since we announced our transition plan in May of last year, Larry and I have worked hard to successfully transition roles and responsibilities, and Larry is ready to be CEO,” stated Ryan. “After 37 years with our company and 16 years as president, I am more confident than ever that our assets along with our innovative products and services are lowering healthcare costs and improving outcomes. Our success took years of hard work, commitment and dedication to our mission from the more than 200,000 CVS Caremark colleagues we have across the company. I am so proud of all of the work we have accomplished together, and remain confident that this success will continue well into the future under Larry’s leadership.”
Prior to being named president and COO in May 2010, Merlo served as EVP of the company and president of CVS/pharmacy retail operations, overseeing a portfolio of more than 7,000 CVS/pharmacy locations. Merlo began his career in chain pharmacy in 1978 as an assistant manager with People’s Drug in Washington D.C. He joined CVS as area VP of the metro Washington D.C., area in 1990 — the year CVS acquired People’s Drug. Over the years, Merlo has held various positions at CVS, including EVP stores of CVS Corp. from April 2000 to January 2007; and EVP stores of CVS Pharmacy, Inc. from March 1998 to January 2007.
“I am grateful for the opportunity to lead this company. As the nation’s premier integrated pharmacy healthcare provider we have a tremendous opportunity to make a difference in the lives of those we serve. I look forward to continuing our positive momentum and to further enhancing the long-term value of our company. I’ve worked directly with Tom for the past 20 years and I want to thank him for his mentoring and leadership and am confident we will continue to build on his legacy,” Merlo stated.
Upon Ryan’s retirement as chairman in May, the company plans to elect David Dorman as the next non-executive chairman of the board of directors at the 2011 Annual Meeting. Dorman has been on the CVS Caremark board since 2006.
“On behalf of the company’s board of directors, I would like to thank Tom for all he has done for CVS Caremark. Under his leadership, CVS has evolved from a regional drug store chain with revenues of $5 billion in 1994 to the nation’s largest pharmacy healthcare provider with revenues approaching $100 billion. And along the way, Tom has built a culture focused on innovation, customer service and flawless execution. It is the culture Tom fostered over his 37-year tenure that differentiates CVS Caremark in the marketplace today,” stated Terry Murray, lead director of CVS Caremark.