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Finally Walgreen Chairman and CEO Jeffrey Rein retire.

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 14, 2008

Deerfield-based Walgreen says Chairman and CEO Jeffrey Rein has retired from the company after 26 years. Walgreens 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.

Rein joined Walgreen in 1990, served as CEO since July 2006 and was named chairman in July 2007. Company spokesman Michael Polzin said in an interview that Rein, 56, did not resign for health or ethical reasons or because of Longs, refusing to comment on whether the retirement was planned.

A Walgreen statement said that Rein is being temporarily replaced by director Alan McNally, who has been a member of the board since 1999. He previously served as CEO of Harris Bankcorp Inc.

Regarding Rein’s resignation, SunTrust Robinson Humphrey analyst, David Magee, said in a note to clients: “Given Mr. Rein’s age and relatively short tenure, we wouldn’t guess this to have been voluntary on his part.” He added: “We understand that the company is evaluating a number of possible going forward strategies; perhaps a successor will be more successful at forging a single vision.”

Magee also said Rein made some good decisions during his tenure, including the company’s venture into the specialty pharmacy business and paring back store growth.

Jeffrey A. Rein
Former Chairman of Walgreen Co and Chief Executive Officer of Walgreen Co.

Jeffrey (Jeff) A. Rein has been Chief Executive Officer of Walgreen Co. of which Walgreens Health Services is a Division since July 12, 2006. Mr. Rein served as President of Walgreen Co. from January 8, 2003 to May 2007 and Chief Operating Officer from January 8, 2003 to July 12, 2006. He also served as an Executive Vice President Marketing of Walgreen Co. since February 2001. Mr. Rein served as Walgreen Co.’s Vice President form July 1999 to February 2001 and as its … Treasurer from March 1996 to January 2000.

He joined Walgreens as an Assistant Manager in 1982 and was promoted to Store Manager in 1984, District Manager in 1990, Divisional Vice President and in 1996 and Vice President of marketing systems and services in 2000. He has been Chairman of Walgreen Co. since July 11, 2007 and Director since January 2003. Mr. Rein serves on the board of directors for Midwest Young Artists, Lyric Opera of Chicago, Midtown Educational Foundation and the Retail Industry Leaders Association. He is a Pharmacist and earned his Accounting Degree in 1974 and his Pharmacy Degree in 1980 from the University of Arizona in Tucson.

BOARD OF DIRECTORS MEMBERSHIPS

2007-2006- Former Chairman of the Board and Chief Executive Officer, Walgreen Co.
2007-Present- Chairman of Walgreen Co and Chief Executive Officer of Walgreen Co Walgreens Health Services

EDUCATION

Bachelor’s Degree 1980, The University of Arizona

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