Form 4: Cencora Executive Chairman Steven Collis Reports Stock Transactions

Steven H. Collis, Executive Chairman of Cencora, Inc., reports the lapsing of restrictions on restricted stock units to cover tax obligations.

Summary

• On December 18, 2024, Steven H. Collis, the Executive Chairman of Cencora, Inc., reported transactions involving Cencora's common stock.
• Collis had 395 shares released from restricted stock units.
• These shares were used to cover FICA obligations and associated income taxes for retirement-eligible employees.
• Following these transactions, Collis directly owns 321,912.665 shares of Cencora common stock.
• The price used to calculate the FICA tax obligation was $232.24 per share, which was the closing price of Cencora's common stock on December 18, 2024.
• The restricted stock units vest in three equal installments on November 20, 2025, November 20, 2026, and November 20, 2027.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and required SEC disclosures, indicating a neutral to slightly positive sentiment due to transparency and routine financial management.

Industry Context

This Form 4 filing is a routine disclosure required by the SEC for corporate insiders, providing transparency into their transactions in the company's stock. It's typical for executives to have restricted stock units that vest over time, and a portion of these units are often used to cover tax obligations.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units (RSUs) that vest over a period of years, a common practice among publicly traded companies like Cencora.
• Companies such as McKesson and Cardinal Health also utilize RSUs as part of their executive compensation, with similar vesting schedules and tax withholding mechanisms.
• The use of RSUs to cover FICA and income tax obligations is a standard procedure to simplify tax reporting for executives and ensure compliance with IRS regulations.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, as it involves the routine lapsing of restricted stock units for tax purposes.
• Employees who are retirement-eligible benefit from the company covering FICA obligations and associated income taxes on their behalf.

Key Dates