Walgreens’ new interim CEO Ginger Graham isn’t the only temporary member of the pharmacy giant’s C-suite

Roz Brewer, who is one of just two black female CEOs of Fortune 500 companies, has resigned from her position as CEO of Walgreens Boots Alliance. Taking her place in the meantime will be Ginger Graham, a seasoned board member and executive in the pharmaceutical industry. This means that the two highest positions at Walgreens will now be held by temporary executives. Additionally, James Kehoe, the former CFO, left the company in August and was substituted by Manmohan Mahajan, the global controller, until a permanent replacement can be found.

Graham has been serving as a member of the board since 2010. In October 2022, he was appointed as the board's primary independent director, which is an important role in overseeing the connection between the board, its chairperson, and the various parties interested in the company's affairs. Stefano Pessina will continue to serve as the executive chairman of Walgreens.

Graham fulfills all the requirements for leadership in the corporate sector of America: she obtained a degree from Harvard Business School in 1986, held various CEO positions, and served on esteemed boards. Additionally, she has extensive experience in the healthcare field, navigating the intricacies of this challenging industry. Her background includes work in pharmaceutical companies, where she contributed to the creation of new medications, as well as leading a prominent international medical technology company and overseeing a healthcare consulting firm.

"Ginger has all the qualities necessary to be the temporary CEO, considering her vast expertise in various sectors of the healthcare field, extensive understanding of WBA, and exceptional operational abilities," stated Pessina when announcing the shifts in leadership.

Walgreens chose not to provide any further information or statement beyond what was already included in their previously released press release.

Graham's knowledge in the healthcare sector is crucial for Walgreens at this important moment, while they aim to broaden their offerings beyond just their pharmacy services. During Brewer's time as the leader, the company made significant purchases worth billions, in order to venture into urgent care, primary care, and specialty pharmaceuticals. Nevertheless, the financial community has not responded positively to this expansion effort to the point that, during an investor call in January, executives had to reassure investors that mergers and acquisitions would not be a top priority in the near future. Instead, the company's main focus would be on integrating their newly acquired businesses into Walgreens smoothly.

Brewer's exit from Walgreens came as a surprise, but it wasn't completely unforeseen since she played a significant role in developing the company's healthcare expansion plan. An analyst from Evercore explained that considering the emphasis on expanding Walgreens' healthcare division, it is logical for them to regroup and find new leaders who have more expertise in the healthcare industry.

Brewer has a lot of prior work involvement in the retail sector. She has previously worked at Starbucks and Walmart. A managing director from the consulting firm GlobalData mentioned to the New York Times that health care is not her strong area. The performance of the company in terms of finances has been disappointing as well, as evidenced by its stock hitting its lowest point in 11 years in May.

Graham expressed her intention to stabilize the company as it embarks on finding a permanent CEO. "I will prioritize our employees and our day-to-day functioning, collaborating to enhance shareholder value and ensuring a seamless handover once we find the ideal CEO for our future," she stated.

Presumably, she will need to find a new CFO permanently since Kehoe departed for the fintech behemoth FIS Global right before Brewer's departure from the firm.

Graham's previous job before her new temporary position was being the CEO of a healthcare consulting firm called Two Trees Consulting. She held this position from 2007 to 2016. Prior to her consulting career, she served as the chief executive of Amylin Pharmaceuticals, a company that specializes in diabetes medication development. This role lasted from 2003 to 2007. One noteworthy achievement during Graham's time was the FDA approval of the blood sugar control medication called Byetta. The medication became extremely popular, to the point where Amylin had to request doctors not to prescribe it until a new manufacturing facility was completed. This was due to high demand that the company couldn't keep up with, as reported by the New York Times at the time.

Graham had a prominent position as the group chairman at Guidant before she started her journey in the diabetes drug industry. Guidant was known for manufacturing cardiological medical devices such as pacemakers and stents. As the group chairman, Graham was responsible for overseeing the company's operations in various parts of the world, including the U.S., Europe, Japan, and emerging markets. According to documents submitted to the SEC, Graham had a wide-ranging mandate in her role. Guidant was actually established after Eli Lilly divested its Advanced Cardiovascular Systems (ACS) division, which Graham led at the time. In 1994, Graham and other executives played a crucial role in making the decision to make ACS a publicly traded company, renaming it as Guidant.

During the early 2000s, she wrote several articles for the Harvard Business Review. One of these articles, published in 2002 under the title "If You Want Honesty, Bend Some Rules," can be seen as a precursor to the current popular leadership style that emphasizes empathy and transparency. In her article, she expressed how a focus on "top-down managerial control" leads to a toxic culture filled with speculation, blaming others, and a self-protective attitude. She encouraged executives to break away from traditional management rules in order to create better corporate cultures. During her tenure, Guidant received recognitions such as being named one of Fortune's "Best Companies to Work For in America" and one of IndustryWeek's "100 Best Managed Companies in the World." Another article she wrote, which was equally forward-thinking but perhaps more controversial, highlighted the significance of lobbying.

In 2008, Graham achieved a position on the staff at the Harvard Business School. During her time there, she imparted knowledge to students at the Arthur Rock Center for Entrepreneurship.

Even though Graham has assumed the role of temporary CEO, he will face the challenge of addressing a declining stock value. The stock price of Walgreens has experienced a decrease of 36% since the beginning of this year, with an additional 6.1% drop on Friday following the news of the CEO's resignation.

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