Labor Union Sponsors Proposal That Targets Executive Bonuses at AmerisourceBergen
A “bonus deferral” shareholder proposal co-sponsored by the International Brotherhood of Teamsters is taking aim at executive bonuses at Chesterbrook-based AmerisourceBergen, writes Catherine Dunn for The Philadelphia Inquirer.
Over the last several years, the company and other opioid distributors and manufacturers have been facing a growing number of lawsuits accusing them of fueling the national opioid epidemic. Any potential global settlement could cost the companies billions of dollars.
The Teamsters said that investors are exposed to these costs and argue that a bonus deferral program represents a critical accountability measure that would provide the company’s board with more time to decide if a bonus is warranted in any given year.
Two major advisory firms, Institutional Shareholder Services and Glass Lewis, have also put their support behind the proposal.
“The current incentive plans not only fail to hold management accountable for costly compliance failures but create potentially risky incentives to cut corners in the first place,” the Teamsters wrote in a letter to fellow shareholders.
The letter was co-signed by Rhode Island’s state treasurer and UAW Retiree Medical Benefits Trust.
Meanwhile, AmerisourceBergen opposes the measure, saying that its current executive compensation policies focus on long-term performance.
Read more about AmerisourceBergen in The Philadelphia Inquirer here.
Connect With Your Community
Subscribe to stay informed!
"*" indicates required fields