8-KLeadership ChangesExhibits & Filings

Cencora, Inc. 8-K Report, Executive Changes (Dec 5, 2013)

Filed December 5, 2013For Securities:COR

Summary

AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on December 4, 2013, to report amendments and restatement of its Supplemental 401(k) Plan. This plan, now known as the AmerisourceBergen Corporation Benefit Restoration Plan, is designed to provide a retirement benefit to a select group of management or highly compensated employees, including named executive officers. The primary purpose of this plan is to allow these executives to receive the full company match on their contributions, which is not possible under the standard 401(k) plan due to IRS compensation limits. The amended plan clarifies eligibility and termination requirements while maintaining the existing compensation arrangements for executive participants. For investors, this filing indicates that the company is maintaining its commitment to retaining and incentivizing key executive talent through enhanced retirement benefits. The Benefit Restoration Plan ensures that high-earning employees can benefit from the company's matching contributions to the same extent as other employees, mitigating potential disparities caused by regulatory compensation caps. While this does not represent a new financial obligation in terms of benefit levels, it underscores the company's structured approach to executive compensation and long-term employee retention.

Key Highlights

  • 1AmerisourceBergen Corporation amended and restated its Supplemental 401(k) Plan, renaming it the AmerisourceBergen Corporation Benefit Restoration Plan.
  • 2The Benefit Restoration Plan is designed for a select group of management and highly compensated employees, including named executive officers.
  • 3The plan's main objective is to allow executives to receive the full company 401(k) match, which is limited by IRS compensation caps under the standard 401(k) plan.
  • 4The amended plan includes clarified eligibility requirements and specifies plan termination conditions.
  • 5The compensation of named executive officers under this plan remains unchanged from the original plan.
  • 6The company filed the Amended and Restated Benefit Restoration Plan as Exhibit 10.1 to the 8-K report.

Frequently Asked Questions

The AmerisourceBergen Corporation Benefit Restoration Plan is an amended and restated supplemental 401(k) plan. It is designed to provide a retirement benefit to a select group of management or highly compensated employees, allowing them to receive the full company match on their contributions that would otherwise be limited by IRS compensation regulations under the standard 401(k) plan.

The plan was originally implemented following a 2001 merger to address the absence of an executive retirement plan and to ensure that executives could receive the same company 401(k) match as other employees, despite exceeding IRS compensation limits applicable to the standard 401(k) plan.

No, the filing explicitly states that the compensation of the named executive officers under the Benefit Restoration Plan remains unchanged from the compensation under the Original Plan. The amendments focus on administrative and structural aspects of the plan.

This filing is primarily an update to an existing executive benefit plan and does not represent a new financial obligation or a change in the benefit levels for participants. Therefore, it is not expected to have a direct, immediate impact on the company's financial performance. Its significance lies in executive retention and ensuring competitive compensation structures.