Form 4: Cencora Director Baumann Acquires Shares in Lieu of Cash Retainer

Director Werner Baumann acquired 107 shares of Cencora, Inc. common stock on November 1, 2024, in lieu of a $25,000 quarterly cash retainer.

Summary

• Werner Baumann, a director of Cencora, Inc., acquired 107 shares of common stock on November 1, 2024.
• The acquisition was made in lieu of a $25,000 quarterly cash retainer, as part of the company's Non-Employee Director Compensation Program.
• The price per share was $234.27.
• Following the transaction, Baumann directly owns 1,883 shares of Cencora common stock.
• Delivery of shares is deferred until January 15, 2028.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. A director acquiring shares is generally a good sign, indicating confidence in the company's future. The transaction is part of a pre-existing compensation plan, so it's not a surprise.

Positives

• The director's acquisition of shares demonstrates confidence in the company.
• The use of stock in lieu of cash retainer preserves company cash.

Future Outlook

The delivery of shares is deferred until January 15, 2028, indicating a long-term commitment from the director.

Industry Context

Director compensation in the form of stock is a common practice to align the interests of directors with those of shareholders. This filing indicates Cencora's continued use of this practice.

Comparison to Industry Standards

• Many companies in the pharmaceutical distribution industry, such as McKesson and Cardinal Health, offer stock options or restricted stock units as part of their director compensation packages.
• The value of the stock grant in lieu of cash retainer appears to be in line with industry practices for non-employee director compensation.

Related Party Transactions

• The grant of restricted stock units to Werner Baumann is a related party transaction as he is a director of Cencora.

Stakeholder Impact

• Shareholders may view the director's stock acquisition positively, as it aligns his interests with theirs.
• The company preserves cash by issuing stock instead of paying a cash retainer.

Key Dates