Walgreens, one of the largest pharmacy chains in the United States, has announced the abrupt departure of CEO Roz Brewer. The news came as a surprise, with Brewer stepping down after less than three years on the job. Brewer, who is not only the most powerful Black woman running a Fortune 500 company but also one of only two Black female CEOs in the Fortune 500, left the company on August 31st.
According to Walgreens, the decision was mutually agreed upon by Brewer and the company’s board. In her LinkedIn post and an internal email to Walgreens employees, Brewer described the decision as one of the most difficult she has made in her career. The reasons behind Brewer’s departure have not been disclosed, and both she and Walgreens declined to comment further.
While Brewer’s exit may be temporary, as she will advise Walgreens on its search for a permanent CEO, it raises questions about the company’s health care transformation strategy. When Brewer took over as CEO in March 2021, she announced an ambitious plan to turn Walgreens into a full-service health care provider. The company had been acquiring primary-care clinics in an effort to expand its reach in the health care industry.
However, the transformation seemed to be progressing slower than expected, and in June, Walgreens cut its full-year earnings guidance. Executives acknowledged being disappointed with the pace of our path to profitability in the health care business. It is unclear how much support Brewer’s strategy had from Walgreens executive chairman Stefano Pessina, who reportedly envisioned a slower expansion into health care through partnerships and minority stakes.
Ginger Graham, an independent director on Walgreens’s board and a pharma industry veteran, will serve as the acting CEO while the company searches for a permanent replacement. In the meantime, Walgreens will pay Brewer $9 million in severance and $2.25 million in consulting fees for the next six months.
Brewer, who previously served as the CEO of Walmart’s Sam’s Club and the chief operating officer at Starbucks, expressed pride in her work to develop Walgreens’s pivot towards health care in her departure announcement. She thanked her colleagues for their hard work and leadership, emphasizing the importance of their efforts in the transformation of the company.
The sudden departure of Roz Brewer leaves a significant void in the ranks of Black female CEOs in the Fortune 500. As Walgreens navigates this leadership transition, the company will need to address the challenges and opportunities in the evolving health care landscape.
