Form 4: Patterson Companies' Chief Operating Officer Kevin Pohlman Reports Changes in Beneficial Ownership
SEC Form 4
Kevin Pohlman, Chief Operating Officer of Patterson Companies, reports transactions involving common stock and stock options, including acquisitions, disposals, and vesting of restricted stock units.
Summary
- On July 1, 2024, Kevin Pohlman, the Chief Operating Officer of Patterson Companies, reported changes in his beneficial ownership of the company's stock.
- These changes include the withholding of shares to cover tax liabilities upon the vesting of restricted stock units (RSUs) and performance share units.
- Pohlman also acquired shares upon the satisfaction of performance criteria related to non-derivative performance share units.
- Additionally, he was granted RSUs that vest in three tranches from 2025 to 2027, assuming continued employment.
- The report also details Pohlman's holdings of employee stock options granted between 2017 and 2023, with various exercise dates and prices.
- As of the reported transactions, Pohlman directly owns 158,656 shares of common stock and indirectly owns 1,864 shares through an Employee Stock Ownership Plan (ESOP).
Sentiment
Score: 7
Explanation: The document is a standard SEC filing detailing changes in beneficial ownership. The sentiment is neutral to slightly positive due to the granting of RSUs and the satisfaction of performance criteria, indicating confidence in the company's future performance.
Positives
- The acquisition of 7,987 shares upon satisfaction of performance criteria suggests that the company is meeting its performance goals.
- The granting of 31,146 RSUs indicates continued investment in the company's leadership and aligns Pohlman's interests with those of the shareholders.
Future Outlook
The document outlines the vesting schedules for RSUs and the exercisability of stock options over the next several years, contingent upon continued employment.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency to investors regarding the alignment of management's interests with those of the shareholders.
Comparison to Industry Standards
- Executive compensation packages including stock options and RSUs are standard practice among publicly traded companies, including Patterson Companies' competitors such as Henry Schein and Benco Dental.
- The vesting schedules and exercise prices of the stock options are typical for incentive plans designed to retain and motivate key executives.
- The reporting of these transactions is mandated by SEC regulations, ensuring transparency and preventing insider trading, similar to requirements for executives at companies like McKesson and Cardinal Health.
Stakeholder Impact
- The reported transactions provide transparency to shareholders regarding executive compensation and alignment of interests.
- The vesting schedules for RSUs and stock options incentivize the COO to remain with the company and contribute to its long-term success.
Key Dates
| Date | Description |
|---|---|
| 07/01/2017 | Stock options granted pursuant to the Plan |
| 08/07/2017 | Stock options granted pursuant to the Plan |
| 07/01/2018 | Stock options granted pursuant to the Plan |
| 07/01/2019 | Stock options granted pursuant to the Plan |
| 07/14/2020 | Stock options granted pursuant to the Plan |
| 07/01/2020 | Stock options granted pursuant to the Plan |
| 07/01/2021 | Stock options granted pursuant to the Plan |
| 07/01/2022 | Stock options granted pursuant to the Plan |
| 07/01/2023 | Stock options granted pursuant to the Plan |
| 05/04/2024 | Date through which ESOP holdings are reported |
| 07/01/2024 | Date of earliest transaction reported; RSUs awarded |
| 07/03/2024 | Date of signature |
| 12/15/2024 | Vesting date for 2,490 RSUs |
| 07/01/2025 | Vesting date for 4,776 RSUs; 33.3% of new RSUs vest |
| 12/15/2025 | Vesting date for 2,692 RSUs |
| 07/01/2026 | Vesting date for 3,013 RSUs; 33.3% of new RSUs vest |
| 07/01/2027 | Vesting date for 33.4% of new RSUs |
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