Rite Aid Corporation (NYSE:RAD) Undertakes A Board Reshuffle

This Dec. 14, 2011 photo, shows a a Rite Aid sign at a store in Woodmere, Ohio. Drugstore operator Rite Aid Corp. said Thursday, Dec. 15, 2011, it took a bigger loss in the third quarter despite improved sales. (AP Photo/Amy Sancetta)

Rite Aid Corporation (NYSE:RAD) is drug store that delivers top notch products and services. It has risen through the ranks to become one of the largest drug stores in the United States. It was today that the business guru disclosed details regarding the reshuffling of its board.

A close outlook

The business guru did not succeed in its attempts to purchase assets from other companies. It expected that move could help it compete more strongly with rivals. The company hopes that by shuffling the board it will succeed at making some important changes in its governance.

The process will involve making minor changes in the board of directors. It seeks to divide power differently in a bid to achieve the most desirable results.

It was on Thursday that the company disclosed it intended to nominate three directors. The changes will shake some major positions in the board. For instance, John Standley loses his position as the chairman. Bruce Bodaken also loses his position as a board member but the company asserts all its doing is for the best.

Shareholders will over the coming month decide on whether or not the company awards the new job positions to nominees. In other words, the fate of Arun Nayar, Louis Miramontes and Robert Knowling Jr lies in the shareholders votes.

An outlook into the future

A positive outcome implies that Frank Savage, Myrtle Potter and David Jessick would lose their positions. The three directors in the course of their tenure helped the company make tremendous steps forward. However, it is now that dawn of a new era.

The company made consultations with its shareholders before moving forward to make the new changes.

Rite Aid has spoken in relation to its recent business activity. According to it, the recent sale of stores turned out to be a smooth process. There company still has more stores in West and East coasts. Reports say that they add up to 2,500 locations in total.

The business giant wishes to compete effectively with rivals such as CVS Health Corp and Walgreens. This company’s shares dropped in value in the current year. However, what happens in future is something we just have to wait and see.