An 'Important Step': Rite Aid Names New CEO, Stock Inches Higher

Shares of retail pharmacy Rite Aid Corporation RAD gained 1.6% early Monday morning after naming digital shopping technology expert and health care industry veteran Heyward Donigan to its C-suite and board.

What Happened

Rite Aid said in early March that John Standley would tep down as CEO, and on Monday the company said Donigan will take over the position effective immediately.

Donigan's recent experience includes the role of president and CEO of Sapphire Digital, formerly Vitals, a maker of omnichannel platforms to better help consumers select health care providers.

Prior to Sapphire Digital, the executive was president and CEO at ValueOptions, the country's largest independent behavioral health improvement company.

Why It's Important

Donigan's acceptance of the CEO title marks an "important step" for Rite Aid to better position itself for the future, Bruce Bodaken, chairman of Rite Aid's board, said in a statement.

Donigan brings the necessary senior executive experience, proven leadership capability, a track record of driving growth and in-depth knowledge of health care and digital shopping technologies, he said.

"Her skillset will be invaluable as we work to deliver on the full potential of our business and create additional long-term value for our shareholders, associates, customers and patients."

What's Next

As part of her appointment as CEO, Donigan will be granted an "employment inducement award" that consists of restricted stock awards with a grant date fair value equal to $2 million that are payable over a three-year period. Donigan will also be granted nonqualified stock options with a grant date fair value equal to $2 million over a four-year period, according to Rite Aid.

Rite Aid shares were trading more than 3% higher off the open Monday.

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Public domain photo via Wikimedia.

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