Nuns, Teamsters, city government and Vanguard all pressure AmerisourceBergen on opioids

CEO Steve Collis received a $1.6 million pay increase last year, earning $11.5 million in 2018.

But if the city of Philadelphia gets its way at the company’s annual meeting Thursday, Collis’ paycheck would be calculated differently going forward: His pay would be cut if the Chesterbrook-based drug distributor paid out large sums to settle lawsuits about the opioid epidemic.

“We believe senior executives should not be insulated from legal risks,” the city’s pension board said in a shareholder proposal to the company, especially “given the potential reputational, legal and regulatory risks [AmerisourceBergen] faces over its role in the nation’s opioid epidemic.” The firm has asked stockholders to vote against the proposal.

That measure will come up for a vote Thursday, as company executives and investors convene at Center City’s Sofitel Philadelphia hotel. It’s a reflection of the shareholder pressure around opioids that’s been building in AmerisourceBergen’s own backyard -- where a proposal backed by local nuns picked up support from the likes of asset managers Vanguard and Charles Schwab. And the Teamsters and the state treasurer’s office successfully advocated for the company to split its CEO and board chair positions, which they argued would improve governance.