Form 4: Patterson Companies CFO Kevin Michael Barry Reports Changes in Beneficial Ownership
SEC Form 4
Kevin Michael Barry, CFO of Patterson Companies, reports transactions involving common stock and derivative securities, including acquisitions, disposals, and vesting of stock options and restricted stock units.
Summary
- On July 1, 2024, Kevin Michael Barry, CFO of Patterson Companies, filed a Form 4 detailing changes in his beneficial ownership of the company's securities.
- The transactions include the withholding of shares to cover tax liabilities upon the vesting of restricted stock units (RSUs) and performance share units.
- Barry also acquired shares upon the satisfaction of performance criteria related to non-derivative performance share units.
- Additionally, the report details the vesting schedule and exercisability of various employee stock options granted to Barry under the company's Amended and Restated 2015 Omnibus Incentive Plan.
- As of the reported transactions, Barry directly owns 42,821 shares of common stock and indirectly owns 1,622 shares through the Employee Stock Ownership Plan (ESOP).
- He also holds options to purchase a total of 87,926 shares of common stock at prices ranging from $22.25 to $33.26.
Sentiment
Score: 6
Explanation: The document is neutral in tone, simply reporting transactions. The vesting of equity awards suggests positive performance, but the tax withholding is a neutral event.
Positives
- The vesting of RSUs and performance share units indicates that performance targets are being met.
- The acquisition of shares upon satisfaction of performance criteria suggests positive performance by the executive.
- The continued holding of a significant number of shares and options aligns the executive's interests with those of the shareholders.
Industry Context
This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies. It provides transparency into the equity holdings and transactions of key executives.
Comparison to Industry Standards
- Executive compensation practices, including the use of stock options and RSUs, are common across publicly traded companies, particularly in the healthcare distribution industry.
- Companies like Henry Schein and McKesson also utilize similar equity-based compensation plans to align executive incentives with shareholder value.
- The vesting schedules and exercise prices of the options are within the typical range for executive compensation packages in comparable companies.
Stakeholder Impact
- The transactions have a minimal direct impact on stakeholders.
- The vesting of equity awards aligns management's interests with those of shareholders, potentially driving long-term value creation.
Key Dates
| Date | Description |
|---|---|
| 07/01/2018 | Stock options granted pursuant to the Plan on 8/1/2018 are exercisable as follows: 33.3% on 8/1/2019, 33.3% on 8/1/2020 and 33.4% on 8/1/2021. |
| 07/01/2019 | Stock options granted pursuant to the Plan on 7/1/2019 are exercisable as follows: 33.3% on 7/1/2020, 33.3% on 7/1/2021 and 33.4% on 7/1/2022. |
| 07/14/2020 | Stock options granted pursuant to the Plan on 7/14/2020 are exercisable as follows: 33.3% on 7/14/2021, 33.3% on 7/14/2022 and 33.4% on 7/14/2023. |
| 07/01/2021 | Stock options granted pursuant to the Plan on 7/1/2021 are exercisable as follows: 33.3% on 7/1/2022, 33.3% on 7/1/2023 and 33.4% on 7/1/2024. |
| 07/01/2022 | Stock options granted pursuant to the Plan on 7/1/2022 are exercisable as follows: 33.3% on 7/1/2023, 33.3% on 7/1/2024 and 33.4% on 7/1/2025. |
| 07/01/2023 | Stock options granted pursuant to the Plan on 7/1/2023 are exercisable as follows: 33.3% on 7/1/2024, 33.3% on 7/1/2025 and 33.4% on 7/1/2026. |
| 05/04/2024 | Represents shares of common stock indirectly held by the Reporting Person's Employee Stock Ownership Plan (ESOP) account through May 4, 2024. |
| 07/01/2024 | Date of earliest transaction reported in the Form 4. |
| 07/01/2024 | RSUs awarded on 7/1/2024 to Reporting Person pursuant to the Plan. The RSUs awarded vest, assuming continued employment, 33.3% on 7/1/2025, 33.3% on 7/1/2026 and 33.4% on 7/1/2027. |
| 07/03/2024 | Date of signature on the Form 4 filing. |
| 12/15/2024 | 3,109 RSUs vest on 12/15/2024. |
| 07/01/2025 | 2,765 units vest on 7/1/2025. |
| 12/15/2025 | 3,111 units vest on 12/15/2025. |
| 07/01/2026 | 2,009 units vest on 7/1/2026. |
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.