Yesterday afternoon, students had the opportunity to learn the secrets of a highly successful CEO.
Monday, David Yost, the president and CEO of AmerisourceBergen Corporation, shared his know-how about managing a multi billion-dollar health care services firm in Huntsman Hall. The event was hosted by the Wharton Health Care Club as part of the Curtis Lane Speaker Series.
Yost explained that after graduating from the University of California, Los Angeles, Anderson School of Management, he started to work for his family business — a pharmaceutical wholesaler — while his friends went to work at investment banks for much higher salaries.
“They never imagined that I would become a Fortune 500 CEO of an over 70 billion-dollar revenue firm,” Yost said. “In terms of revenue, AmerisourceBergen is the 27th largest American company,” he said.
During its 50-quarter history, the small family business evolved into one of the three largest pharmaceutical wholesalers, which together occupy 90 percent of the market.
Yost explained that since the merger in 2001, earnings-per-share from continuing operations of the company have increased consistently. They increased by 17 percent in a GAAP basis last year despite the poor economic situation. Additionally, AmerisourceBergen generates over 600 million dollars per year, Yost added.
In order to run a low margin, asset management business, Yost said that he keeps the total operating cost less than 2 percent of its revenue.
“Diversification is important,” Yost added. “AmerisourceBergen has diverse customer mix and favorable product mix.”
After giving the basic industry tutorial, Yost lectured on his insights into leadership.
“Integrity is really, really important,” he said. “No one can steal it from you, but you can miss it by yourself. All the things you have achieved can be totally compromised by one stupid thing.”
Yost also urged “the leaders of tomorrow” to do something valuable for America.
Yost finished his lecture with three pieces of lasting advice: “Enjoy what you do. Bloom where you are. Don’t lie, cheat or steal or tolerate those who do because it’s the personality that your organization will take on.”
Attendees had very positive reactions to Yost’s presentation.
“Yost is a dynamic speaker. His advice on leadership was relevant to today’s environment and very appropriate,” said one of the event’s organizers Prashanth Jayaram, a second year MD and MBA student.
First year Wharton MBA student Khyati Mehta agreed.
“Yost is known as a motivational speaker,” he said. “It’s always great to know what’s going on in the industry.”
