AmerisourceBergen 2011 Annual Report Download - page 18

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AmerisourceBergen again delivered outstanding
performance in fiscal 2011 following exceptional
performance in fiscal 2010. Enhanced gross margins
drove operating margin improvement, cash flow was
very strong, and diluted earnings per share increased
14%. As a result of its excellent cash flow, the Company
was able to increase its return to stockholders by
repurchasing $841 million of its common stock and
raising the dividend twice during fiscal 2011.
In July of 2011, R. David Yost retired after 14 years
as the Chief Executive Officer of AmerisourceBergen
and its predecessor company. Mr.Yost delivered superb
performance over the course of his tenure, most
notably developing a very talented and results-oriented
management team. One of the talented executives,
Steven H.Collis, succeeded Mr. Yost as President
and Chief Executive Officer of the Company, and the
Board of Directors has every confidence that under his
leadership, the Company will continue to deliver the
outstanding performance that AmerisourceBergen
stakeholders have come to expect.
Your Board of Directors continues to work
to ensure the alignment of Board and management
interests with the long-term interests of our stockholders.
Our management team remains focused on the
execution of the Company’s financial and operating
objectives for fiscal 2012 while also investing in
information technology infrastructure and in
acquisitions that will help position the Company
for future growth and success.The Board is actively
engaged with management in overseeing the development
and execution of the Company’s strategic business
plan, monitoring and
evaluating executive
performance, and planning
and implementing
succession planning for senior management.
We continue to enhance our corporate governance.
In 2011, we held our first advisory stockholder
vote on executive compensation, which received
overwhelming support from our stockholders.We also
took steps to phase out the classification of our Board
of Directors and provide for the annual election of
directors. In addition, effective on October 1, 2011,
the Board approved a new structure and new assignments
for the standing Board Committees in an effort to
provide directors with an opportunity to serve on
different Committees and to deepen their understanding
of the Company’s business and operations.We will
continue to monitor and evaluate leading corporate
governance practices, and we welcome input from
our stockholders on governance issues.
I invite you to read this Summary Annual Report
to gain a better understanding of the Company’s strong
performance in fiscal 2011, and our plans to continue
to grow the Company in the coming year and beyond.
On behalf of the Board, thank you for your
ongoing support.
Richard C. Gozon
Chairman of the Board
January 20, 2012
Fellow Stockholders:
BOARD OF DIRECTORS
Richard C. Gozon 2 ,5
Chairman of the Board, Retired Executive Vice President,
Weyerhaeuser Company
Charles H. Cotros 2*,3,5
Retired Chairman and Chief Executive Officer, Sysco Corporation
Richard W. Gochnauer 1, 3,4
Retired Chief Executive Officer, United Stationers Inc.
Edward E. Hagenlocker 2,3*,4,5
Retired Vice Chairman, Ford Motor Company
Jane E. Henney, M.D. 2,4*,5
Professor, College of Medicine, University of Cincinnati
Kathleen W. Hyle 1*,3,5
Senior Vice President, Constellation Energy and Chief Operating
Officer, Constellation Energy Resources
Michael J. Long 1 ,2
Chairman, President and Chief Executive Officer, Arrow Electronics, Inc.
Henry W. McGee 1,4
President, HBO Home Entertainment
Steven H. Collis 5*
President and Chief Executive Officer, AmerisourceBergen Corporation
Committees of the Board
1 Audit and Corporate Responsibility Committee
2 Compensation and Succession Planning Committee
3 Finance Committee
4 Governance and Nominating Committee
5 Executive Committee
* Denotes Committee Chair