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

Director Werner Baumann acquired 110 shares of Cencora, Inc. common stock on May 1, 2024, in lieu of a $25,000 quarterly cash retainer.

Summary

• Werner Baumann, a director of Cencora, Inc., acquired 110 shares of common stock on May 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 $229.2.
• Following the transaction, Baumann directly owns 1,673 shares of Cencora common stock.
• Delivery of vested shares is deferred until January 15, 2028.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. A director acquiring shares is generally a good sign, indicating confidence in the company's future. The transaction itself is routine and expected.

Positives

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

Future Outlook

The filing does not contain any specific forward-looking statements regarding Cencora's future performance.

Industry Context

Director share acquisitions are common and often viewed positively, indicating alignment between management and shareholder interests. The use of stock-based compensation is a standard practice to conserve cash and incentivize long-term performance.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies, including Cencora's peers in the pharmaceutical distribution industry such as McKesson and Cardinal Health.
• The specific amount and terms of the compensation (e.g., vesting schedules, stock options vs. restricted stock units) can vary widely based on company size, performance, and compensation philosophy.
• Deferred delivery of vested shares is also a common practice to further align director interests with long-term shareholder value.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with shareholder value.
• It has a neutral impact on employees, customers, suppliers, and creditors.

Key Dates