8-KLeadership ChangesOther EventsExhibits & Filings

Cencora, Inc. 8-K Report, Executive Changes (Nov 14, 2006)

Filed November 14, 2006For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on November 13, 2006, reporting on two key events from early November. Firstly, the Compensation Committee of the Board of Directors approved the Annual Incentive Plan (AIP) performance criteria for fiscal year 2007 for the company's executive officers. The plan emphasizes financial performance, including earnings per share and return on committed capital at the corporate level, and earnings before interest and taxes and return on committed capital at the business group level, as primary drivers for bonus payouts. Non-financial individual objectives are also included as secondary performance measures. Target incentive levels for these officers range from 100% to 120% of their base salary. Secondly, and of significant interest to investors, the company announced a substantial 100% increase in its quarterly dividend to $0.05 per share of common stock. This dividend increase, announced on November 9, 2006, signals a positive outlook and a commitment to returning value to shareholders.

Key Highlights

  • 1AmerisourceBergen Corporation (now Cencora, Inc.) approved performance criteria for its 2007 Annual Incentive Plan (AIP) for executive officers.
  • 2The 2007 AIP heavily weights financial performance metrics such as Earnings Per Share (EPS) and Return on Committed Capital.
  • 3Business group-level financial metrics like Earnings Before Interest and Taxes (EBIT) and Return on Committed Capital are also included for relevant executives.
  • 4Non-financial individual objectives will serve as secondary performance criteria for executive bonuses.
  • 5Target incentive levels for executive officers under the AIP range from 100% to 120% of base salary.
  • 6The company announced a significant 100% increase in its quarterly dividend, raising it to $0.05 per share.
  • 7The dividend increase, announced on November 9, 2006, reflects a positive outlook and a commitment to shareholder returns.

Frequently Asked Questions

The primary focus of the AIP for fiscal year 2007 is on the achievement of measurable financial performance criteria, both at the corporate level (e.g., earnings per share, return on committed capital) and, where applicable, at the business group level (e.g., earnings before interest and taxes, return on committed capital). Non-financial, individual objectives are considered secondary.

AmerisourceBergen announced a 100% increase in its quarterly dividend. The new quarterly dividend amount is $0.05 per share of common stock.

The substantial 100% increase in the quarterly dividend signals confidence from the company's management and board of directors regarding its financial health and future earning potential. It demonstrates a commitment to returning value to shareholders and suggests a positive outlook.

The earliest event reported, the approval of the AIP criteria, occurred on November 8, 2006. The news release regarding the dividend increase was issued on November 9, 2006. The Form 8-K filing reporting these events was made on November 13, 2006.