Form 4: Patterson Companies Executive Les B. Korsh Reports Changes in Beneficial Ownership
SEC Form 4
Les B. Korsh, CLO & Corporate Secretary 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, Les B. Korsh, CLO & Corporate Secretary of Patterson Companies, Inc., reported changes in beneficial ownership of the company's stock.
- These changes involve common stock and derivative securities, specifically employee stock options.
- The transactions include the withholding of shares to cover tax liabilities upon the vesting of restricted stock units (RSUs) and performance share units.
- Korsh also acquired shares upon the satisfaction of performance criteria related to non-derivative performance share units.
- Additionally, RSUs were awarded to Korsh, vesting in installments over the next three years, contingent upon continued employment.
- Korsh directly owns 106,607 shares of common stock and indirectly owns 2,215 shares through an Employee Stock Ownership Plan (ESOP).
- The report also details Korsh's holdings of various employee stock options granted between 2015 and 2023, with exercise prices ranging from $22.25 to $56.66 and expiration dates between 2025 and 2033.
Sentiment
Score: 6
Explanation: The sentiment is neutral. This is a routine filing detailing stock transactions by an executive. There are no overtly positive or negative signals, and the transactions appear to be part of a standard compensation package.
Positives
- The awarding of 24,917 RSUs to Les B. Korsh indicates the company's continued investment in its leadership.
- The vesting schedule of the RSUs (2025-2027) incentivizes continued employment and commitment to the company's long-term success.
Future Outlook
The RSUs awarded on 7/1/2024 vest in installments from 2025 to 2027, contingent upon continued employment.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. Monitoring these filings can offer insights into management's perspective on the company's stock.
Comparison to Industry Standards
- Executive compensation packages often include a mix of salary, stock options, and restricted stock units to align management's interests with those of shareholders.
- The vesting schedules for RSUs and stock options are typical, designed to incentivize long-term performance and retention.
- Companies like Henry Schein and McKesson, which are also major players in the healthcare distribution industry, similarly use equity-based compensation for their executives.
Stakeholder Impact
- The transactions reported have a minimal direct impact on stakeholders.
- The vesting of RSUs and stock options incentivizes management to act in the best interests of shareholders.
Key Dates
| Date | Description |
|---|---|
| 07/01/2015 | Stock options granted pursuant to the Patterson Companies, Inc. Amended and Restated Equity Incentive Plan. |
| 07/01/2016 | Stock options granted pursuant to the Plan. |
| 07/01/2017 | 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. |
| 07/01/2020 | Stock options granted pursuant to the Plan. |
| 07/14/2020 | 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 until which shares of common stock are indirectly held by the Reporting Person's Employee Stock Ownership Plan (ESOP) account. |
| 07/01/2024 | Date of earliest transaction and RSU award. |
| 07/03/2024 | Date of signature for the Form 4 filing. |
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.