Director on CVS/Caremark board in eye of storm

May 28, 2007

CtW Investment Group has issued a statement requesting the CVS/Caremark board immediately request Headrick's resignation.

In the wake of a recent disclosure that Roger Headrick received as little as 43% of the true shareholder vote in CVS/Caremark's May 9 director election, CtW Investment Group has issued a statement requesting the CVS/Caremark board immediately request Headrick's resignation. Headrick is a former Caremark director. In early May, in a stunning blow to the CVS/Caremark Board of Directors, shareholders withheld a record number of votes from Headrick and Lance Piccolo who presided over Caremark's apparent backdating of stock options and flawed takeover negotiations with CVS. The statement reads, "The CVS/Caremark board must not allow 'phantom votes'—those cast by brokers with no economic interest in the company—to elect a director who failed to receive a majority of the votes cast by interested shareholders. To do otherwise would violate the principle of the board's majority vote policy for director elections."

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