Wal-Mart Blocks Hank Mullany From Taking CVS President Post

Hank Mullany, who left Wal-Mart last month to head the pharmacy unit of drug chain CVS, has been blocked from taking the position. At a hearing December 17 in Delaware Chancery Court in Wilmington, DE, Judge Travis Laster granted Wal-Mart’s request for a preliminary injunction, barring Mullany’s hiring by CVS until a trial on the issue in early March. Wal-Mart sued CVS, claiming Mullany’s hiring could violate a non-compete agreement.

Lawyers for Wal-Mart argued that CVS would have access to confidential information about Wal-Mart’s growth strategy and plans for a small-format store pilot program if it hired Mullany. Mullany is the former president of Wal-Mart’s north U.S. division and an EVP, with responsibility for retail operations for more than 1,300 stores in 19 states.

Mullany abruptly resigned from Wal-Mart November 3. On December 6, he resurfaced when Woonsocket, RI based drug chain CVS named his as president of its pharmacy unit.

Advertisement

Wal-Mart immediately claimed the hiring would break a non-compete clause Mullany had signed with the Bentonville, AR retailer when he was promoted to president of the north division in 2008; he joined Wal-Mart in 2006.

Wal-Mart contends that the agreement bars him from working for a competitor, defined as a retailer with more than $5 billion in revenue. Additionally, Wal-Mart contends that Mullany had in his possession a “roadmap or blueprint for the entire company’s operations in the U.S. in 2012,” from a presentation made during an organizational meeting.

Mullany’s attorney countered that his client does not know anything that would be beneficial to CVS as a result of his employment with Wal-Mart.

Mullany, 52, has nearly 30 years of executive retail leadership with a strong background in operations, finance and strategic planning. His four year stay at Wal-Mart included responsibility for 1,300 stores across 19 states.  Earlier in his career, Mullany served in various senior management positions, including as president of Genuardi’s Family Markets, Plymouth Meeting, PA.

Mullany had been set to succeed current president and COO Larry J. Merlo who would have continued to hold responsibility for CVS/pharmacy retail operations while the search for a successor to the company’s current chairman and CEO Tom Ryan, was ongoing.  As announced as part of a corporate succession plan last May, Ryan plans to retire from his position as CEO prior to the next annual meeting at which time Merlo will succeed Ryan as CEO.