Humana is adding two independent directors to its board as it braces for a leadership refresh through 2022.
The announcement comes as part of an agreement with Starboard Value LP, an activist hedge fund. The group will mutually agree on the two appointees with Humana.
One new board member will be appointed before Humana's 2022 Annual Meeting of Shareholders on April 22. The second will be appointed sometime after the meeting.
In addition to the new board members, the payer will phase out two incumbent board members over its next two meetings.
Taken together, the moves would mean Humana has added seven independent directors to its board over the past three years.
The moves are an effort to promote earnings per share growth of 11 percent to 15 percent — growth that would be rooted in Medicare Advantage expansions, supercharging Humana's healthcare services businesses and streamlining internal operations. The payer hopes to generate $1 billion in new value by 2023.