According to a report from the Financial Times investors are cheering the news that Rite Aid’s chief executive will depart following a nine-year stint and two failed merger attempts that left the stock languishing at less than $1.
Shares in the drugstore chain jumped nearly 18 per cent in pre-market trading on Wednesday, after the company last night said John Standley will step down as CEO. Also leaving the company are chief financial officer Darren Karst and chief operating officer Kermit Crawford.
The leadership changes come just months after Rite Aid shareholders rejected a big pay increase for Mr Standley at the company’s annual general meeting and follows a period of growing investor unrest over the direction of the US pharmacy chain. “The Board believes that now is the right time to undertake a leadership transition,” said Bruce Bodaken, Rite Aid’s chairman. “We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders.”
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
