Fortrea Appoints Erin L. Russell to Board

By Tamara Parker • Saturday, February 22 15:16 • Permanent Link

Fortrea (NASDAQ: FTRE), a leading global contract research organization, has announced the appointment of Erin L. Russell, a financial and healthcare executive, as a new independent member of the company's board of directors. This appointment comes as part of a cooperation agreement between Fortrea and Starboard Value LP, an investment firm that owns approximately 5.4% of the company's outstanding common stock.

Erin L. Russell brings extensive experience in finance and healthcare to the position, having served in executive and board roles. She was recently appointed to serve on the board of ModivCare (NASDAQ: MODV) and also serves on the boards of eHealth, Inc. (NASDAQ: EHTH) and Kadant Inc. (NYSE: KAI). Her previous board experience in the healthcare sector includes Tivity Health Inc., Devilbiss Healthcare LLC, DynaVox Inc., and 21st Century Oncology Inc. Ms. Russell spent 16 years as a principal of Vestar Capital Partners, L.P., a leading private equity firm.

As part of the cooperation agreement, Starboard has agreed to a customary standstill, voting agreement, and other provisions. Starboard also has the right to appoint a representative to the board in certain circumstances beginning in August 2025.

Fortrea is a leading global provider of clinical development solutions to the life sciences industry, offering phase I-IV clinical trial management, clinical pharmacology, and consulting services. The company partners with emerging and large biopharmaceutical, biotechnology, medical device, and diagnostic companies to drive healthcare innovation.

This strategic move and the cooperation agreement with Starboard Value LP reflect Fortrea's commitment to maximizing value for all shareholders and furthering financial improvements. The addition of Erin L. Russell to the board of directors brings valuable experience and expertise to the company's leadership team, and it will be interesting to see how her appointment contributes to Fortrea's future financial performance and strategic direction. The market has reacted to these announcements by moving the company's shares -4.7% to a price of $14.88. For more information, read the company's full 8-K submission here.

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