SUPPLEMENT TO PROXY STATEMENT FOR ANNUAL MEETING
OF SHAREHOLDERS TO BE HELD SEPTEMBER 12, 2016
This supplement to proxy statement
supplements and amends the proxy statement dated July 29, 2016, notice of which was first mailed to shareholders on or about July 29, 2016, in connection with the solicitation of proxies by the Board of Directors of Patterson Companies, Inc. for the
annual meeting of shareholders to be held on Monday, September 12, 2016, beginning at 4:30 p.m. central time, at 1031 Mendota Heights Road, St. Paul, Minnesota 55120.
Except as supplemented or amended by the information contained in this supplement to proxy statement, all information set forth in the proxy statement remains
unchanged. We urge you to read this supplement to proxy statement carefully and in its entirety together with the proxy statement.
If you have already
submitted a proxy or voting instructions and do not wish to change your vote, you do not need to take any further action and your shares will be voted as originally directed by you.
If you have not yet submitted a proxy or voting
instructions or if you wish to change your vote, please be sure to vote over the Internet or by telephone or by requesting a printed set of the proxy materials be sent to you so that you may complete, sign, date and return a proxy
card.
Voting by any of these methods will not prevent you from voting in person if you choose to attend the annual meeting. Instructions regarding how to vote your shares are included in this supplement to proxy statement.
Only shareholders of record at the close of business on July 15, 2016 are entitled to notice of and to vote at the annual meeting or any adjournment or postponement
thereof.
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to be Held on
September 12, 2016
In accordance with rules and regulations adopted by the Securities and
Exchange Commission, we are furnishing our proxy materials on the Internet. Proxy materials means the proxy statement, our 2016 Annual Report and any amendments or updates to these documents, including this supplement to proxy statement.
Our proxy materials are available on the Internet to the general public at
materials.proxyvote.com/703395
.
The information in the proxy statement is supplemented and amended as follows:
Rescission and cancellation of portion of prior stock option grant
We have determined that unexercised stock options to purchase 38,062 shares of common stock granted on July 1, 2015 to Scott P. Anderson, our Chairman, President and
Chief Executive Officer, exceeded the limit on the number of shares subject to equity awards that could be granted to any one participant in a calendar year under our Amended and Restated Equity Incentive Plan (the 2012 Incentive Plan).
As previously reported, Mr. Anderson was granted the following equity awards under the 2012 Incentive Plan on July 1, 2015: (1) nonqualified stock
options to purchase up to 42,698 shares of common stock, vesting 100% after three years, at an exercise price of $49.27 per share, (2) one-time special nonqualified stock options to purchase up to 250,000 shares of common stock, vesting 25% after
three years, another 25% after four years and the remaining 50% after five years, at an exercise price of $56.66 per share, (3) a restricted stock award for 10,148 shares of common stock, vesting 20% each year, starting one year after the date of
grant, and (4) performance units having a maximum estimated future payout of 35,216 shares of common stock, which vest only if performance criteria are met three years after the date of grant. The 2012 Incentive Plan limits the number of shares
subject to equity awards that may be granted to any individual participant in any calendar year to 300,000 shares. Of the equity awards granted to Mr. Anderson during calendar year 2015, awards for 38,062 shares exceeded that
limit. Consequently, a portion of Mr. Andersons one-time special nonqualified stock option to purchase up to 250,000 shares has been rescinded and cancelled, resulting in an option for the purchase of 211,938 shares of common stock,
vesting 25% after three years, another 25% after four years and the remaining 50% after five years, at an exercise price of $56.66 per share. None of the stock options granted to Mr. Anderson during calendar year 2015 has been exercised.
Additional supplemental information
The following additional
information is provided to illustrate the effects on certain compensation information presented in the proxy statement had the excess options never been granted in July 2015. Accordingly, the supplemental information below assumes that Mr.
Anderson was issued options in July 2015 to purchase only up to (1) 42,698 shares of common stock at an exercise price of $49.27 per share and (2) 211,938 shares of common stock at an exercise price of $56.66 per share.
Summary Compensation Table
Assuming that the excess stock options had never
been granted, the aggregate grant date fair value of stock options awarded to Mr. Anderson for the fiscal year ended April 30, 2016 (as reported in the Summary Compensation Table of the proxy statement in accordance with applicable rules of the
Securities and Exchange Commission) would have been $2,498,856, and his total compensation for fiscal 2016 would have been $5,685,300.
2
Grants of Plan-Based Awards
Assuming that the excess stock options had never been granted, the information regarding estimated possible payouts under non-equity incentive plan awards for fiscal
2016 performance and equity incentive plan awards in fiscal 2016 to Mr. Anderson would be as follows:
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Estimated Possible Payouts
Under Non-Equity Incentive
Plan Awards (a)
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Estimated Future Payouts
Under Equity Incentive Plan
Awards (c)
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All
Other
Stock
Awards:
Number
of
Shares
of Stock
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All
Other
Option
Awards:
Number
of
Securities
Underlying
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Exercise
or Base
Price of
Option
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Grant
Date Fair
Value of
Stock and
Option
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Name
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Grant Date
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Threshold
($)
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Target
($)
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Maximum
($)(b)
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Threshold
(#)
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Target
(#)
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Maximum
(#)
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or Units
(#)(d)
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Options
(#)
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Awards
($/Sh)
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Awards
($)(e)
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Scott P. Anderson
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7/1/2015
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230,000
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920,000
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1,610,000
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4,402
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17,608
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35,216
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-
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-
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-
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999,958
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7/1/2015
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-
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-
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-
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-
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42,698
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49.27
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481,206
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7/1/2015
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-
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10,148
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-
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-
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499,992
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7/1/2015
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-
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-
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211,938
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(f)
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56.66
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2,017,650
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1/1/2016
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-
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3,804
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(g)
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-
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-
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42,985
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(a)
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Represents amounts that could have been paid under our Management Incentive Compensation Plan for service rendered during fiscal 2016.
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(b)
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Each executive had the opportunity to increase his or her targeted bonus potential as a percentage of base salary by 3% for each 1% that actual performance exceeded budgeted performance up to 105% of budgeted
performance, and by 6% for each 1% thereafter, subject to a cap at a 175% payout for actual performance equal to 115% of budgeted performance.
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(c)
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Represents performance units which vest only if performance criteria are met three years after the grant date.
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(d)
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Represents restricted stock awards or restricted stock units subject to time-based vesting. These awards vest 20% each year, starting one year after the date of grant. Dividends declared and paid on shares of our
common stock are accrued at the same rate on this restricted stock (dividend equivalents in the case of restricted stock units). Accrued amounts are forfeitable and not paid until the related award vests. No preferential dividends are paid
on such awards.
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(e)
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Represents the grant date fair value of performance units, shares of restricted stock, stock options and restricted stock units awarded to each named executive officer, computed in accordance with FASB ASC Topic 718.
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(f)
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Represents one-time special nonqualified stock options which vest 25% after three years, another 25% after four years and the remaining 50% after five years. The option exercise price is set at 115% of the fair
market value of the stock on the grant date, July 1, 2015.
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(g)
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Represents shares purchased under our Capital Accumulation Plan.
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3
Outstanding Equity Awards at Fiscal Year-End
Assuming that the excess stock options had never been granted, the following table sets forth information concerning outstanding equity awards held by Mr. Anderson at
fiscal year-end 2016:
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Option Awards
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Stock Awards
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Name
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Grant Date
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Number of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
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Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
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Option
Exercise
Price
($)
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Option
Expiration
Date
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Number of
Shares or
Units of
Stock That
Have
Not
Vested
(#)
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Market
Value of
Shares or
Units of
Stock That
Have
Not
Vested
($)
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Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units
or
Other
Rights
That Have
Not
Vested
(#)
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Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That Have
Not
Vested
($)
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Scott P. Anderson
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7/1/2015
7/1/2015
7/1/2014
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-
-
-
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42,698(a
211,938(d
20,200(a
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)
)
)
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49.27
56.66
39.64
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7/1/2025
7/1/2025
7/1/2024
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4,640(b
31,568(e
6,967(f
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)
)
)
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201,144
1,368,473
302,019
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37,808(c)
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1,638,977
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(a)
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Represents nonqualified stock options which vest 100% after three years.
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(b)
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Represents restricted stock award which vests 20% each year, starting three years after the grant date. Grant dates for each executive are at the beginning of each fiscal year or when the executive is hired or
promoted, if such date is after the initial grant at the beginning of the fiscal year.
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(c)
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Represents performance units which vest only if performance criteria are met three years after the grant date.
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(d)
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Represents one-time special nonqualified stock options which vest 25% after three years, another 25% after four years and the remaining 50% after five years.
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(e)
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Represents restricted stock award which vests 20% each year, starting one year after the grant date. Grant dates for each executive are at the beginning of each fiscal year or when the executive is hired or
promoted, if such date is after the initial grant at the beginning of the fiscal year.
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(f)
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Represents restricted stock purchased under our Capital Accumulation Plan. The restriction period is three years from the grant date, unless an extension is elected by the plan participant.
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4
Equity Compensation Plan Information
The following table provides information as of April 30, 2016 about our common stock that may be issued under our existing equity compensation plans, assuming the
excess stock options had never been granted to Mr. Anderson:
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Plan
Category
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Number of
securities to be
issued upon
exercise
of
outstanding
options,
warrants and
rights
(a)
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Weighted-
average
exercise
price of
outstanding
options,
warrants and
rights
(b)
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Number of
securities
remaining
available for future
issuance under
equity
compensation
plans
(excluding
securities
reflected in
column (a))
(c)
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Equity compensation plans approved by security holders
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1,228,274
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$50.15
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7,565,187
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Equity compensation plans not approved by security holders
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-
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-
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Total
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1,228,274
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$50.15
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7,565,187
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Voting; Revocability of Proxies
Whether you
hold shares directly as the shareholder of record or through a broker, trustee or other nominee as the beneficial owner, you may direct how your shares are voted without attending the annual meeting. There are three ways to vote by proxy:
By Internet
- Shareholders who receive a Notice Regarding the Availability of Proxy Materials may submit proxies over the Internet by following the instructions
on the notice. Shareholders who receive a paper copy of a proxy card or voting instruction card provided by their broker, trustee or nominee by mail may submit proxies over the Internet by following the instructions on the proxy card or voting
instruction card.
By Telephone
- Shareholders of record may submit proxies by telephone by following the instructions set forth on the website listed on the
Notice Regarding the Availability of Proxy Materials or the proxy card. You will need to have the control number that appears on your Notice Regarding the Availability of Proxy Materials or proxy card available when voting by telephone.
By Mail
- Shareholders who request and receive a paper copy of the proxy card or the voting instruction card by mail may submit proxies by completing, signing
and dating their proxy card or voting instruction card and mailing it in the accompanying pre-addressed envelope.
If you have already submitted a proxy or
voting instructions and, after reviewing this supplement to proxy statement, you wish to change your vote, you may do so by following the instructions below. If you have already submitted a proxy or voting instructions and do not wish to change
your vote, you do not need to take any further action and your shares will be voted as originally directed by you.
If you are the shareholder of record, even
after you have voted, you may change your vote or revoke your proxy at any time before the votes are cast at the meeting by (1) delivering a written notice of your revocation to our Corporate Secretary at our principal executive office, (2)
executing and delivering a later dated proxy, or (3) appearing in person at the meeting, filing a written notice of revocation with our Corporate Secretary and voting in person the shares to which the proxy relates. Any written notice or later
dated proxy should be delivered to Patterson Companies, Inc., 1031 Mendota Heights Road, St. Paul, Minnesota 55120, Attention: Les B. Korsh, or hand-delivered to Mr. Korsh before the vote at the meeting.
5
However, if your shares are held by a broker or other nominee, you will need to contact your broker or the nominee if you
wish to revoke the proxy or voting instructions that you previously gave your broker or other nominee
Whether or not you plan to attend the annual meeting,
please be sure to vote over the Internet or by telephone or by requesting that a printed set of the proxy materials be sent to you so that you may complete, sign, date and return the proxy card, so that your shares may be voted in accordance with
your wishes. Voting by any of these methods will not prevent you from voting in person if you choose to attend the annual meeting.
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BY ORDER OF THE BOARD OF DIRECTORS
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Scott P. Anderson
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Chairman, President and Chief Executive Officer
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St. Paul, Minnesota
August 17, 2016
6