Walgreen Co. Announces Retirement Of Jeffrey Rein As Chairman And CEO - Board Names Alan McNally Chairman And Acting CEO

Main Category: Pharmacy / Pharmacist
Article Date: 13 Oct 2008 - 3:00 PDT

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Walgreens (NYSE:WAG)(NASDAQ:WAG) today announced that Jeffrey A. Rein, 56, is retiring as Chairman, Chief Executive Officer and a director. Alan G. McNally, 62, lead director of the Walgreens Board, has been named Chairman and acting Chief Executive Officer. Mr. McNally previously served as chairman and CEO of Harris Bankcorp and has been a member of the Walgreens Board since 1999.

"We would like to thank Jeff Rein for his many outstanding contributions to Walgreens over the past 26 years and respect his decision to retire," said Mr. McNally. "Walgreens is a strong company with market-leading businesses and exceptional growth prospects. We recently completed our 34th consecutive year of record sales and earnings while maintaining a strong balance sheet and financial flexibility. We are confident that our core retail and pharmacy business and growing health and wellness initiatives will drive continued growth and value creation for shareholders."

The Board has formed a special committee, comprised of William C. Foote, chair of the governance committee, James A. Skinner, chair of the compensation committee, and Mr. McNally, to lead a nationwide search for a permanent CEO. The special committee will be considering both internal and external candidates.

"It has been a tremendous honor to serve Walgreens," said Mr. Rein. "Walgreens is one of America's finest corporations, and I am proud of our accomplishments over the years in building America's largest drugstore chain offering consumer goods and services and serving the health and wellness needs of millions of Americans. I have great confidence in the company's future, and I thank our 226,000 employees for their exceptional dedication and commitment to Walgreens."

Mr. Rein's retirement will be effective immediately.

Walgreens is the nation's largest drugstore chain with fiscal 2008 sales of $59 billion. The company operates 6,479 drugstores in 49 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and cost-effective health care services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, which is comprised of: Take Care Consumer Solutions, managers of 247 convenient care clinics at Walgreens drugstores, and Take Care Employer Solutions, managers of worksite-based health and wellness services at 364 employer campuses.

Retired Chairman and CEO, Harris Bank

Alan G. McNally is the chairman and acting CEO of Walgreen Co. He has served on Walgreens board of directors since 1999. He was chief executive officer of Harris Bank from 1993 to 2002 and chairman of the board of Harris Financial Corporation from 1998 to 2006. He currently serves as a special advisor to those organizations.

McNally joined the Bank of Montreal Group of Companies (BMO Financial Group) in 1975 and played a leading role in the Harris/Bank of Montreal merger in 1984. Prior to his move to Chicago, he was vice chairman responsible for personal and commercial financial services at Bank of Montreal. In this position, McNally served individuals, small businesses and corporate mid-market customers nationwide in Canada through a network of branches, relationship managers and electronic channels.

McNally has served as chairman of the board of MasterCard International Inc. in New York. He also was the Federal Reserve Bank of Chicago's representative to, and vice president of, the Federal Advisory Council to the Board of Governors of the Federal Reserve in Washington.

McNally had senior responsibilities in virtually every area of BMO Financial Group's operations: in finance as corporate controller, in London as head of European operations serving corporations and financial institutions, and in the head office responsible for international banking and treasury operations in North America, Europe and Asia.

Since his retirement as Harris Bank's chief executive, McNally has continued to serve as a director of Walgreens and as a director or advisor of public and private companies and not-for-profit organizations.

Previously, he was a member of the board of Evanston Northwestern Healthcare, trustee of DePaul University, trustee of Kenyon College in Ohio, member of the advisory board of Northwestern University's Kellogg Graduate School of Management, campaign chair for the Chicago United Way, director of Chicago Youth Centers, treasurer of the Commercial Club of Chicago, member of the Civic Committee and director of the Chicago Club.

In Canada, McNally was treasurer of Queen Elizabeth Hospital Foundation, a member of the board of governors of York University, director of Kids' Help Phone and director of the Canadian Council for Aboriginal Business.

In recognition of his civic leadership, he has received the Daniel H. Burnham Award for outstanding efforts and involvement in Chicago's business, cultural, educational and philanthropic communities, the Anti-Defamation League's Americanism Award, the Christian Industrial League's Community Builder Award and the Prime Movers Award honoring individuals and organizations that have created opportunities for minority and women-owned businesses in Chicago.

He has received an honorary Doctor of Laws degree from York University in Toronto and has been recognized by York's Schulich School of Business as the recipient of the Outstanding Executive Leadership Award.

Born in Quebec City in 1945, McNally attended Cornell University from 1963 to 1967, where he was awarded bachelor of science and master's of engineering degrees in industrial engineering and was a varsity hockey goaltender and freshman hockey coach. He later earned an international M.B.A. from York University in Canada, a program that included studies at Harvard Graduate School of Business, Oxford University Center for Management Studies and INSEAD in France.

Prior to joining Bank of Montreal, McNally spent six years with Aluminum Company of Canada, in finance and other functions in Arvida, Quebec, and the Montreal head office.

Note: This news release may contain forward-looking statements that involve risks and uncertainties. The following factors could cause results to differ materially from management expectations as projected in such forward-looking statements: seasonal variations, competition, risks of new business areas, the availability and cost of real estate and construction, and changes in federal or state legislation or regulations. Investors are referred to the "Cautionary Note Regarding Forward-Looking Statements" in the Company's most recent Form 10-K, which Note is incorporated into this news release by reference. In addition, there are certain risks and uncertainties relating to the proposed transaction that may impact forward-looking statements, including, but not limited to, consummation of the proposed transaction, satisfaction of the conditions to closing the proposed transaction, the ability to realize the anticipated benefits and cost synergies and the performance of Walgreens following consummation of the proposed transaction.

Source: Alan G. McNally Chairman and Acting CEO,
Walgreen Co