When CVS Well being abruptly introduced that high-profile CEO Karen Lynch was leaving instantly, to get replaced by firm government David Joyner, one other announcement adopted in smaller sort: “Roger Farah Named Executive Chairman of the Board.”
It doesn’t sound thrilling, and it’s unlikely many individuals acknowledged Farah’s title, however buyers ought to concentrate. No less than strictly talking, Farah, 71, has develop into probably the most highly effective government at this troubled firm. His position in CVS’s turnaround try will in all probability be important, and if few folks know his title, that might be nice with him. When it’s steered that his profession consists largely of excessive efficiency and a low profile, he responds, “Thank you—that’s my strategy.”
The proof of Farah’s newly conferred energy at CVS is indicated by a single phrase: “executive.” He had already been chairman of the board for 2 years, however the distinction between chairman and government chairman is all of the distinction on the earth. Administrators who aren’t firm staff should not have government duties. However “executive chair means executive management,” says Charles Elson, a company governance skilled who has served on a number of boards. “When you’re executive chair, the buck stops with you. You’re the real CEO.”
Farah tells Fortune that, in line with his lifelong profession technique, he gained’t be like that. “I have a lot of experiences in my career that I hope to bring to bear, but only in support of David, who is the CEO,” he says. “There should be no misunderstanding. I’m here to help. If you know anything about my track record, that’s what I try to do.”
Farah has certainly constructed an extended historical past of enhancing the efficiency of firms, principally behind the scenes. He joined Ralph Lauren in 2000—he and Ralph had adjoining workplaces—when a lot of that enterprise was managed by means of licensing partnerships for numerous merchandise and territories. He acquired direct management of these companies, enabling the corporate to handle the model at a extra constant and upscale stage. The inventory worth had been drifting downward for 3 years when he arrived, however it rose ten-fold in his 14 years on the firm. As we speak he’s well-known within the style trade, however outdoors it, Ralph Lauren is legendary.
It was an identical story at Tory Burch, the place he helped a brand-name designer handle and construct a extremely profitable enterprise. She’s well-known; he isn’t. Then, in 2017, he joined the Tiffany board of administrators on the behest of activist buyers; he rose to chairman a number of months later. He needed to deal with LVMH’s buy of Tiffany, a tense task as a result of LVMH threatened to cancel the deal after the pandemic arrived within the midst of negotiations. The deal closed on good phrases for Tiffany.
It might appear odd that this skilled in luxurious merchandise has develop into CVS Well being’s government chairman. The reason is that he joined the Aetna board in 2007, and CVS purchased Aetna in 2018—and now Aetna is the issue. “A lot of the company is working, but part of it’s not,” he says, “The macro issues in the insurance business are challenging for everybody, but we have some of our own issues.” So what’s the following step? “We need to improve performance, for sure. I think David Joyner will lay out and articulate his plan within the next month or two.” Nonetheless, “it’s not a quick fix,” he says. “It’s a couple years of hard work to get us back to where we should be.” What wants fixing? “I want to focus on talent and organizational development and culture—that’s how I plan to spend my time.”
He emphasizes that he gained’t be like different government chairs. “It’s different from owner-founders or former CEOs who become executive chair, and there’s a lot of confusion over where does their role start and stop. That’s not the case with me.”
Nobody ought to anticipate to listen to a lot from Farah within the media by means of these subsequent couple of years. But when historical past is a information, buyers at the least have motive to hope that two years from now, CVS Well being can have one way or the other made progress in opposition to its issues.
