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SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
PURSUANT TO SECTIONSCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) OF THE SECURITIES EXCHANGE ACT OFof the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement / / Confidential, for Use of the
Commission Only (as permitted by
/X/ Definitive Proxy Statement Rule 14a-6(e)(2))
/ / Definitive Additional Materials
/ / Soliciting MaterialMaterials Pursuant to Section 240.14a-11(c)Rule 14a-11(c) or Section 240.14a-12
LACLEDE GAS COMPANY
----------------------------------------------------Rule 14a-12
Laclede Gas Company
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(Name of Registrant as Specified Inin Its Charter)
LACLEDE GAS COMPANY
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(Name of Person(s) Filing Proxy Statement)Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j)(2).
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).No Fee required
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4)(1) and
0-11.
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:
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4) Proposed maximum aggregate value of transaction:
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[FN]
Set0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined.determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1)(1) Amount Previously Paid:
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2
LACLEDE GAS COMPANY
720 OLIVE STREET
ST. LOUIS, MISSOURI 63101
-------------------------------------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
-----------------------------------------
The Annual Meeting of Stockholders of Laclede Gas Company will be held at
Marriott's Pavilion Hotel, One Broadway, St. Louis, Missouri, beginning at 10:00
a.m., Central Standard Time, on Thursday, January 26, 1995,23, 1997, for the following
purposes:
1. To elect three Directors, each to serve for a term of three years and
until the respective successor shall be duly elected and qualified (see
Proposal 1 on page 3).
2. To ratify the appointment by the Board of Directors of Deloitte & Touche
LLP as the firm of independent public accountants to audit the accounts
of the Company for the fiscal year ending September 30, 19951997 (see
Proposal 2 on page 18).
3. To transact such other business as may properly come before said meeting,
or any adjournment or adjournments thereof.
By order of the Board of Directors,
DONALD L. GODINER,
Secretary.
St. Louis, Missouri
December 27, 1994
IMPORTANT20, 1996
I M P O R T A N T
We hope you will attend the Annual Meeting. If you are unable to be present,
please sign, date and return the enclosed proxy as soon as possible. A return
envelope, which does not require postage if mailed in the United States, is
enclosed for your convenience.
Stockholders representing a majority of Common Stock issued and outstanding
must be present or represented by proxy in order to constitute a quorum. To
ensure the presence of a quorum at this meeting, an early return of your proxy
is solicited by the Board of Directors.
3
LACLEDE GAS COMPANYL A C L E D E G A S C O M P A N Y
720 OLIVE STREET
ST. LOUIS, MISSOURI 63101
-----------------
PROXY STATEMENT--------------------------
P R O X Y S T A T E M E N T
This statement is furnished in connection with a solicitation of proxies by
the Board of Directors of Laclede Gas Company (hereinafter called the Company)
to be used at the Annual Meeting of Stockholders of the Company to be held on
January 26, 1995,23, 1997, for the purposes set forth in the accompanying Notice of
Annual Meeting of Stockholders. The Company's Annual Report for 1994,1996, including
financial statements, has been mailed to stockholders. The Company's proxy
statement and form of proxy are being mailedreleased to stockholders beginning on
approximately December 27, 1994.20, 1996. Execution of the enclosed proxy given in
response to this solicitation will not affect a stockholder's right to attend
the meeting and to vote in person. Presence at the meeting of a stockholder who
has signed a proxy does not in itself revoke a proxy. Any stockholder giving a
proxy may revoke it any time before it is exercised by giving notice thereof to
the Company in writing or in open meeting. Unless so revoked, the shares
represented thereby will be voted in accordance with the specifications thereon.
The Company has authorized 50 million shares of $1.00 Par Value Common Stock
and on October 31, 1994,1996, there were outstanding 15,708,85017,557,540 shares. Only holders
of Common Stock at the close of business on December 12, 1994,11, 1996, are entitled to
notice of, and to vote at, the meeting. Generally, each share of Common Stock
represents one vote; but in the election of Directors, stockholders have
cumulative voting rights. If cumulative voting rights are exercised by any
stockholder, he or she shall have the right to cast as many votes in the
aggregate as shall equal the number of Common Stock shares so held by him or her
in the Company, multiplied by the number of Directors to be elected. Each
stockholder may cast the whole number of votes, either in person or by proxy,
for one nominee, or distribute them among two or more nominees. To exercise
cumulative voting rights, please indicate appropriate instructions on the face
of the proxy. Unless directions on cumulative voting are specified in the proxy,
the persons named in the form of proxy reserve the right to vote each proxy
cumulatively and for the election of less than all the nominees, but they do not
presently intend to do so unless candidates other than those named herein for
Directors are duly proposed at the meeting other than by management of the
Company.
Stockholders representing a majority of the Common Stock issued and
outstanding must be present or represented by proxy to constitute a quorum. With
regard to the election of Directors, since three Directors are to be elected,
the three nominees receiving the greatest 2
4
number of affirmative votes will be
deemed elected; therefore, shares represented by proxies which are marked
"WITHHOLD AUTHORITY"``WITHHOLD AUTHORITY'' will have no effect. If a stockholder excepts from the
proxy one or more Director
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nominees, all votes represented by the shares held by such stockholder shall,
unless otherwise specifically stated, be allocated as evenly as possible for and
among the remaining nominees. With regard to Proposal 2, or any other matters
properly brought before this meeting, approval requires the affirmative vote of
a majority of the shares entitled to vote and represented in person or by proxy
at this meeting (unless a greater affirmative vote is required by the Company's
Articles of Incorporation or by state law). Shares represented by proxies which
are marked "ABSTAIN"``ABSTAIN'' or which deny discretionary authority on any other
matters will be counted as shares present for purposes of determining quorum;
such shares will also be treated as shares present and entitled to vote on
Proposal 2 and any such other matters, which will have the same effect as a vote
against Proposal 2 and any such other matters. Proxies relating to "street name"``street
name'' shares which are not voted by brokers on one or more, but less than all,
matters will be considered present at the Annual Meeting for purposes of
determining quorum, but will not be treated as shares represented at the meeting
as to such matter(s) not voted on, and therefore will not have the effect of
either an affirmative or negative vote, except where the vote of the holders of
a majority of outstanding Common Stock is required.
When a stockholder participates in the Company's Dividend Reinvestment and
Stock Purchase Plan, the proxy to vote shares registered in the stockholder's
own name will include those shares held for the stockholder in the Dividend
Reinvestment and Stock Purchase Plan. If the stockholder does not send any proxy
to vote the shares registered in his or her own name, the shares held for the
stockholder in the Dividend Reinvestment and Stock Purchase Plan will, unless
such stockholder attends the meeting and votes in person, not be voted or
counted for the purpose of determining a quorum.
STOCKHOLDERS' PROPOSALS
Stockholders' proposals to be considered for inclusion in the Company's
proxy statement must be submitted on a timely basis. Proposals for the 19961998
Annual Stockholders' Meeting must be received by the Company no later than
August 28, 1995.29, 1997. Any such proposals, as well as any questions related thereto,
should be directed to the Secretary of the Company.
PROPOSAL 1. ELECTION OF DIRECTORS
It is the intention of the persons named in the enclosed form of proxy to
vote such proxy FOR the election of the three nominees listed below for
Directors for terms expiring in 1998.2000. If any nominee becomes unavailable for any
reason before the meeting (which is not anticipated), the proxies will be voted
for a person to be selected by the Board of Directors of the Company.
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5
INFORMATION ABOUT NOMINEES AND DIRECTORS
The following information with respect to principal occupation or employment
for the past five years, name and principal business of the corporation or other
organization in which such occupation
3
5
or employment is carried on, and in regard to other affiliations, and to
beneficial ownership of securities at October 31, 1994,September 30, 1996, has been furnished to
the Company by the respective nominees and Directors continuing in office.
Mr. James L. Hoagland will not stand for
reelection this year since he is retiring fromMessrs. Andrew B. Craig, III, C. Ray Holman, and William E. Nasser, the Board of Directors,
such retirement to be effective following the Annual Meeting. As a
consequence of Mr. Hoagland's retirement as a Director, the number of
Directors has been reduced, by amendment to the Company's By-laws, from
ten to nine effective January 26, 1995. Messrs. H. Givens, Jr. and
H. Edwin Trusheim and Ms. Krey, the three other
Directors whose terms will expire on January 26, 1995,23, 1997, will stand for
reelection.
NOMINEES FOR NEW TERM (TO EXPIRE AT ANNUAL MEETING, 1998)2000):
DR. HENRY GIVENS, JR., 61, has been President of Harris-Stowe State
College for the last 15 years. He is a Director of Mark Twain
Bancshares, Inc.
Year first elected a Director: 1992
MARY ANN KREY, 47, has been Chairman and Chief Executive Officer of
Krey Distributing Co., an Anheuser-Busch wholesaler, since December
1986. She is a Director of Commerce Bank of St. Louis and CPI
Corporation.
Year first elected a Director: 1992
H. EDWIN TRUSHEIM, 67, was Chairman of the Board of Directors and Chief
Executive Officer of General American Life Insurance Company, a
mutually owned company serving both individuals and groups with life
and health insurance as well as pension plans and pension
administrative services, from January 1986 to May 15, 1992, at which
time he relinquished the title of Chief Executive Officer. Between
January 1986, and May 1988, Mr. Trusheim also served as President of
General American Life Insurance Company. Between May 1981, and January
1986, he served as its President and Chief Executive Officer. He is a
Director of Angelica Corporation, General American Life Insurance
Company, Venture Stores, Inc., GenCare Health Systems, Inc., RehabCare
Corporation, and Reinsurance Group of America.
Year first elected a Director: 1986
YOUR BOARD OF DIRECTORS RECOMMENDS THAT THE FOREGOING NOMINEES
EACH BE ELECTED FOR A THREE-YEAR TERM EXPIRING IN 1998 AND UNTIL
THE RESPECTIVE SUCCESSOR SHALL BE DULY ELECTED AND QUALIFIED.
4
6
TERM EXPIRING AT ANNUAL MEETING, 1996:
ROBERT C. JAUDES, 60, has been Chairman of the Board, President and
Chief Executive Officer since January 27, 1994 and prior to that served
as President and Chief Executive Officer of Laclede Gas Company since
August 1, 1991. From October 1, 1990, to August 1, 1991, he served as
President. From July 1, 1989, through September 30, 1990, Mr. Jaudes
served as Executive Vice President-Operations and Marketing of the
Company. Prior to that time he served as Executive Vice
President-Finance from January 23, 1986. He is a Director of The
Boatmen's National Bank of St. Louis.
Year first elected a Director: 1983
BOYD F. SCHENK, 72, has been President of The Boyd Group, Inc., an
investment consulting company, since January 1, 1989 and Chairman of
the Board of ABC Laboratories, Inc., an environmental testing
laboratory and manufacturer of laboratory instruments, since July 25,
1992. Prior to that time he served as Vice Chairman of Whitman
Corporation (formerly IC Industries, Inc.), a holding company involved
in consumer and commercial products, since November 15, 1985. Until
July 1988, he was also Chairman of Pet Incorporated, a subsidiary of IC
Industries, Inc., and a processor and marketer of food products and
other consumer goods, and had served as Chief Executive Officer of Pet
Incorporated until February 1985.
Year first elected a Director: 1972
ROBERT P. STUPP, 64, is, and since December 31, 1990, has been, the
President of Stupp Bros., Inc. which has three operating divisions
which were established on December 31, 1990: Stupp Bros. Bridge & Iron
Co. of St. Louis, Missouri, fabricator of iron and steel; Stupp
Corporation of Baton Rouge, Louisiana, a steel pipe manufacturer; and
Builders Engineering Company of St. Louis, Missouri. Mr. Stupp
currently serves in senior executive positions in these operating
divisions. From December 14, 1989 through December 31, 1990, Mr. Stupp
served as President of Stupp Bros. Bridge & Iron Co., which was then a
corporation; from 1980 to December 14, 1989, Mr. Stupp served as
Executive Vice President of Stupp Bros. Bridge & Iron Co.; and he also
served from 1980 to December 31, 1990 as Senior Vice President of Stupp
Corporation, which also then was a corporation. He is a Director of
Stupp Bros., Inc.
Year first elected a Director: 1990
[FN]
- -----
"Control Person"-defined as one who, other than solely as a
Director of Laclede Gas Company, possesses the power to direct the
management and policies of Laclede Gas Company.
5
7
TERM EXPIRING AT ANNUAL MEETING, 1997:
ANDREW B. CRAIG, III, 63,65, is Chairman of the Board and Chief Executive Officer
of Boatmen's Bancshares, Inc. He has been Chairman since 1989, Chief Executive
Officer since 1988 and was President from 1985 to 1994. He was Chairman of the
Board of The Boatmen's National Bank of St. Louis from 1985 until January 1992.
In addition to being a Director of Boatmen's Bancshares, Inc., he is a Director
of Petrolite Corporation and Anheuser-Busch Companies, Inc.
Year first elected a Director: 1994
C. RAY HOLMAN, 52,54, is Chairman of the Board President and Chief Executive Officer of
Mallinckrodt Group Inc. (formerly IMCERAMallinckrodt Group, Inc.). He has been Chairman
since October 1994, and President and Chief Executive Officer since December 1992.1992, and was
President from December 1992 to December 1995. He served both as Corporate Vice
President of Mallinckrodt Group Inc. from 1990 and President and Chief Executive
Officer of Mallinckrodt Medical, Inc., a subsidiary of Mallinckrodt Group Inc., from
1989 to December 1992; and Group Vice
President for Medical Products from 19851992. In addition to 1989.being a Director of Mallinckrodt Inc., Mr.
Holman is a Director of Boatmen's Bancshares, Inc.
Year first elected a Director: 1994
WILLIAM E. NASSER, 55, was elected57, retired in November 1995 as Chairman of the Board, and Chief
Executive Officer and President of Petrolite CorporationCorporation. He had served in that
capacity since February 1992. He has1992, and prior to February 1992 he had served as
President of Petrolite Corporation since June 1988. He hasMr. Nasser had been with
Petrolite Corporation since 1962, serving previously as Vice President and
General Manager of Petrolite's Polymers Division. In
addition to beingHe is a Director of PetroliteEnergy
BioSystems Corporation.
Year first elected a Director: 1994
YOUR BOARD OF DIRECTORS RECOMMENDS THAT THE FOREGOING NOMINEES
EACH BE ELECTED FOR A THREE-YEAR TERM EXPIRING IN 2000 AND UNTIL
THE RESPECTIVE SUCCESSOR SHALL BE DULY ELECTED AND QUALIFIED.
TERM EXPIRING AT ANNUAL MEETING, 1998:
DR. HENRY GIVENS, JR., 63, has been President of Harris-Stowe State College for
the last 17 years. He is a Director of Mark Twain Bancshares, Inc.
Year first elected a Director: 1992
4
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MARY ANN KREY, 49, has been Chairman and Chief Executive Officer of Krey
Distributing Co., an Anheuser-Busch wholesaler, since December 1986. She is a
Director of Commerce Bancshares, Inc. and CPI Corporation.
Year first elected a Director: 1992
H. EDWIN TRUSHEIM, 69, retired on January 26, 1995 as Chairman of the Board of
General American Life Insurance Company, a mutually owned company serving both
individuals and groups with life and health insurance as well as pension plans
and pension administrative services. Previously, he was Chairman of the Board
and Chief Executive Officer of General American Life Insurance Company from
January 1986 to May 15, 1992, at which time he relinquished the title of Chief
Executive Officer, but remained as Chairman of the Board until January 26, 1995.
He is a Director of Angelica Corporation, Venture Stores, Inc., RehabCare
Corporation, and Reinsurance Group of America.
Year first elected a Director: 1986
TERM EXPIRING AT ANNUAL MEETING, 1999:
RICHARD E. BEUMER, 58, has been Chairman of the Board and Chief Executive
Officer of Sverdrup Corporation since January 1, 1996. Sverdrup Corporation
provides complete capabilities for the development, design, construction and
operation of capital facilities and technical systems. From July 1, 1994 to
December 31, 1995, he was President and Chief Executive Officer of Sverdrup
Corporation. Prior to that he served as President of Sverdrup Corporation from
January 1, 1993 to June 30, 1994. Previously, he served as an Executive Vice
President of Sverdrup Corporation from January 1, 1991 to December 31, 1992. He
is a Director of Roosevelt Financial Group, Inc.
Year first elected a Director: 1996
ROBERT C. JAUDES, 62, has been Chairman of the Board, President and Chief
Executive Officer since January 27, 1994 and prior to that served as President
and Chief Executive Officer of Laclede Gas Company since August 1, 1991. From
October 1, 1990, to August 1, 1991, he served as President. Mr. Jaudes has been
with Laclede Gas Company since 1955. He is a Director of The Boatmen's National
Bank of St. Louis and Energy BioSystems
Corporation.Louis.
Year first elected a Director: 19941983
ROBERT P. STUPP, 66, is, and since December 31, 1990, has been, the President of
Stupp Bros., Inc., established on December 31, 1990, which has four operating
divisions: Stupp Bros. Bridge & Iron Co. of St. Louis, Missouri, fabricator of
iron and steel; Stupp Corporation of Baton Rouge, Louisiana, a
[FN]
- --------
``Control Person''--defined as one who, other than solely as a Director of
Laclede Gas Company, possesses the power to direct the management and
policies of Laclede Gas Company.
5
7
steel pipe manufacturer; Stupp Metals of St. Louis, Missouri, a steel service
center; and Fulton Iron Works International of St. Louis, Missouri, engineers
and manufacturers of machinery. Mr. Stupp currently serves in senior executive
positions in these operating divisions. He has served as a senior executive
officer of one or more of those entities since 1960. He is a Director of Stupp
Bros., Inc.
Year first elected a Director: 1990
The standing committees of the Board of Directors for the fiscal year ended
September 30, 1994,1996, included the Audit Committee, the Compensation Committee and
the Nominating Committee.
The Audit Committee, comprised of sixfive members, now consisting of: Messrs.
Beumer, Craig, Givens, Hoagland, Holman Schenk, and Trusheim, Chairman, met threefour times during the
19941996 fiscal year. It is the duty of the Committee to recommend to the Board
independent auditors to perform audit and non-audit services, review the scope
and results of such services, review with management and the independent
auditors any recommendations of the auditors regarding changes and improvements
in the Company's accounting procedures and controls and management's response
thereto, and report to the Board after each Audit Committee meeting.
6
8
The Compensation Committee, comprised of four members, now consisting of:
Ms. Krey and Messrs. Hoagland,Nasser, Stupp Trusheim, and Schenk,Trusheim, Chairman, met two times during
the 19941996 fiscal year. It is the duty of the Committee to review and recommend to
the Board the salaries and all other forms of compensation of the Company's
Officers.
The Nominating Committee, comprised of five members, now consisting of: Ms.
Krey and Messrs. Hoagland, Schenk,Nasser, Stupp, Trusheim and Jaudes, Chairman, did not meetmet once during
the 19941996 fiscal year. It is the duty of the Nominating Committee to recommend
new Director nominees to the Board of Directors. Stockholders may recommend
Director nominees to the Committee in writing, giving pertinent background
information, and such person will be given the same consideration as any other
person reviewed as a possible nominee.
During the 19941996 fiscal year, there were 1314 meetings of the Board of
Directors. All Directors attended 75% or more of the aggregate number of
meetings of the Board and applicable committee meetings, except for
Mr. Craig who attended 72.7% of such meetings.
BENEFICIAL OWNERSHIP OF COMPANY COMMON STOCK
The following table sets forth as of September 30, 1996 the beneficial
ownership of the Company's Common Stock by (i) Stupp Bros., Inc., P. O. Box
6600, Lemay Station, St. Louis, MO 63125, the only person or entity who as of
October 31, 1994,September 30, 1996, is known to be the beneficial owner of 5% or more of the
Company's Common Stock, (ii) each of the Directors, and Director nominees, (iii) each of the Company's
current Executive Officers listed in the Summary Compensation Table, and (iv)
all Directors Director nominees, and Executive Officers as a group.
76
9
8
AMOUNT AND NATURE OF OWNERSHIP
SOLE VOTING SHARED VOTING
AND/OR AND/OR
NAME OF INVESTMENT INVESTMENT PERCENT
BENEFICIAL OWNER POWER POWER TOTAL OF CLASS
---------------- ----------- ------------------------- ----- --------
R. J. Carroll....................................... -0- -0- -0- -0-E. Beumer........ 1,100 700 1,800
A. B. Craig, III.................................... 1,800 -0- 1,800
H. Elliott, Jr. .................................... 4,390 -0- 4,390
H. Givens, Jr. ..................................... 1,200 -0- 1,200
D. L. Godiner....................................... 921 -0- 921
J. L. Hoagland...................................... 3,300 -0- 3,300
C. R. Holman........................................ 1,800 -0- 1,800
R. C. Jaudes........................................ 5,664 -0- 5,664
M. A. Krey..........................................III.... 2,200 -0- 2,200
H. Givens, Jr....... 1,600 -0- 1,600
D. L. Godiner....... 1,037 -0- 1,037
C. R. Holman........ 2,200 -0- 2,200
R. C. Jaudes........ 6,372 4,000 10,372
M. A. Krey.......... 2,600 -0- 2,600
R. M. Lee........... 3,356 -0- 3,356
G. T. McNeive, Jr... 12 -0- 12 W. E. Nasser........................................ 800Nasser........ 2,200 -0- 8002,200
B. F. Schenk........................................ 5,800K. J. Neises........ 214 -0- 5,800214
R. P. Stupp......................................... 2,232Stupp......... 2,632 -0- 2,2322,632
H. E. Trusheim...................................... 2,274Trusheim...... 2,674 -0- 2,2742,674
D. H. Yaeger........................................ 927Yaeger........ 1,824 -0- 9271,824
Stupp Bros., Inc. ..................................Inc.... 1,155,000 -0- 1,155,000 7.35%6.6%
All Directors Director Nominees and
Executive Officers
as a Group...................... 40,648Group........ 42,457
- -------------
Includes restricted, nonvested shares granted under the Restricted Stock
Plan for Non-Employee Directors, as described in more detail on page 18.17.
Does not include the shares owned by Stupp Bros., Inc., which are set forth
separately in the table and of which shares Mr. Stupp is a beneficial owner
with shared voting and investment power.
Mr. Stupp is a Director and Executive Officer of Stupp Bros., Inc. and has
a one-third interest in a voting trust which controls 100% of the stock of
Stupp Bros., Inc.
This amount does not include the shares owned by Stupp Bros., Inc.
Less than one percent.
87
109
COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS
Set forth below is certain information as to amounts paid, earned or awarded
by the Company for the fiscal year ended September 30, 1994,1996, and for the
immediately preceding two fiscal years for services in all capacities by the
Chief Executive Officer and the fourfive other most highly compensated Executive
Officers.
SUMMARY COMPENSATION TABLE
ANNUAL COMPENSATION
-----------------------------------------------------
NAME AND OTHER ANNUAL ALL OTHER
PRINCIPAL POSITION YEAR SALARY COMPENSATION COMPENSATION
---------------------- ---- ------ ------------------------------- ----------------
R. C. Jaudes 1996 $486,667 $129,640 $20,380
Chairman of the Board, 1995 $460,455 $129,310 $16,372
President and CEO 1994 $429,714 $121,480 $12,423
Chairman of the Board, 1993 $398,238 $121,160 $10,071
President and CEO 1992 $369,377 $105,600 $ 6,299
H. Elliott, Jr. 1994 $164,411 $ 31,720 $ 6,668
Senior Vice President- 1993 $157,885 $ 31,590 $ 6,683
Administrative Services 1992 $150,882 $ 31,200 $ 4,746
D. H. Yaeger 1996 $213,333 $ 17,168 $ 5,099
Executive Vice President-- 1995 $184,894 $ 7,440 $ 4,381
Operations and Marketing 1994 $175,179 --- $ 4,245
Senior Vice President-Operations, 1993 $162,560 - $ 4,115
Gas Supply and Technical Services 1992 $146,024 - $ 2,477
D. L. Godiner 1994 $159,089 -1996 $171,500 $ 6,16217,168 $10,995
Senior Vice President, General 1993 $151,885 -1995 $162,333 $ 5,7317,440 $ 9,252
Counsel and Secretary 1992 $145,190 -1994 $159,089 -- $ 4,434
R.6,162
K. J. Carroll 1994 $146,786 -Neises 1996 $169,000 $ 4,0586,300 $ 6,970
Senior Vice President-FinancePresident--Gas Supply 1995 $151,269 $ 4,650 $ 4,896
and 1993 $135,119 -Regulatory Affairs 1994 $144,286 -- $ 3,770
Chief Financial Officer 1992 $103,587 -3,686
R. M. Lee 1996 $155,000 $ 2,204
- -----
Over the period of the Company's last three fiscal years, the
following named Executive Officers have been promoted and assigned
increases in their responsibilities: on January 23, 1992, Mr.
Elliott was promoted from Vice President-Administrative Services to6,300 $ 5,976
Senior Vice President-AdministrativePresident-- 1995 $137,746 $ 4,650 $ 4,338
Administrative Services and Mr. Carroll was
promoted from1994 $131,464 -- $ 3,525
G. T. McNeive, Jr. 1996 $146,000 $ 9,450 $ 4,171
Senior Vice President and Controller to Vice President-President-- 1995 $115,758 -- $ 3,011
Finance and Chief Financial Officer; on August 27, 1992,Officer 1994 $106,980 -- $ 2,869
- --------
Effective September 1, 1995, Mr. Yaeger was promoted fromto Executive Vice
President-Planning toPresident--Operations and Marketing; Mr. Neises was named Senior Vice
President-
Operations, GasPresident--Gas Supply and TechnicalRegulatory Affairs; Mr. Lee was named Senior Vice
President--Administrative Services; and on January 27,
1994, Mr. Carroll and Mr. Yaeger were promoted toMcNeive was named Senior Vice
President-FinancePresident--Finance and Chief Financial Officer and Senior Vice
President-Operations, Gas Supply and Technical Services,
respectively. In addition, on January 27, 1994, Mr. Jaudes was
elected Chairman of the Board.Officer.
The amounts in this column reflect dividend equivalentsDividend Equivalents paid under the
Incentive Compensation Plan to the named Executive Officer during the three
most recent fiscal 9
11
years together, in the case of Mr. Jaudes, with Mr.
Jaudes' Board of Directors'Directors and Board committee fees for those three
8
10
years. For a more detailed discussion of the Incentive Compensation Plan,
see the Long-Term Incentive Plan Table and discussion thereof on this
page.page 9.
For 19941996 this column includes (a) above-market interest on deferrals under
the Company's Deferred Income Plan described on page 1312 (Mr. Jaudes,
$4,676; Mr. Elliott, Jr., $1,948;$7,445; Mr. Yaeger, $-0-; Mr. Godiner, $2,323;$3,180; Mr. Neises, $623; Mr. Lee,
$623; and Mr. Carroll, $342), andMcNeive, $124); (b) above-
marketabove-market interest on deferrals under
the Company's Deferred Income Plan II described on page 13 (Mr. Jaudes,
$1,851; Mr. Elliott, Jr.,
$741;$8,227; Mr. Yaeger, $94;$369; Mr. Godiner, $604;$3,107; Mr. Neises, $1,580; Mr. Lee,
$582; and Mr. Carroll, $36)McNeive, $-0-);
and (c) Company matching contributions under the
Company's Salary Deferral Savings Plan which was established under Section
401(k) of the Internal Revenue Code (Mr. Jaudes, $5,896; Mr. Elliott, Jr.,
$3,979;$4,580; Mr. Yaeger,
$4,151;$4,586; Mr. Godiner, $3,235;$4,569; Mr. Neises, $4,519; Mr. Lee, $4,521; and Mr.
Carroll,
$3,680)McNeive, $3,903); and (d) Company paid premiums for supplemental travel and
accident insurance for accidental death or dismemberment with benefits of
up to $250,000 (approximately $144 for each named Executive Officer).
INCENTIVE COMPENSATION PLAN
The Company has anfollowing table discloses certain information about the Company's
Incentive Compensation Plan, which is considered a type of long-term incentive
plan under the proxy disclosure rules of the Securities and Exchange Commission.
Share Units are awarded from
time to time under the Company's Incentive Compensation Plan. Dividend
equivalents (equal to the cash dividend paid on each share of the
Company's Common Stock) are paid on each of the Share Units to the
recipient until his death, and thereafter to a surviving spouse, if
any, for life. The amount of dividend equivalents paid to any named
Executive during the last fiscal year is disclosed in the "Other Annual
Compensation"
LONG TERM INCENTIVE PLANS--AWARDS IN LAST FISCAL YEAR
PERIOD
NUMBER UNTIL
NAME OF UNITS MATURATION
---- -------- --------------
Douglas H. Yaeger............. 7,500 5 years
Donald L. Godiner............. 7,500 2 years
Gerald T. McNeive, Jr......... 10,000 5 years
- --------
Prior to January 26, 1995, Dividend Equivalents (equal to the cash dividend
paid on each share of the Company's Common Stock) were paid on each of the
Share Units to the recipient until his death, and thereafter to a surviving
spouse, if any, for life. Effective for awards of Share Units made on and
after January 26, 1995, no post-retirement Dividend Equivalents and no
post-retirement Deferred Compensation Amounts shall be paid to an awardee
who retires before attaining the age of 65 (other than by reason of death
or disability or following a hostile change of control) unless the awardee
remains employed by the Company for at least the following respective
periods (based on the awardee's age at the date of the award of the Share
Units) subsequent to the date upon which the Share Units are awarded:
9
11
AGE AT NUMBER OF YEARS OF SERVICE
DATE OF REQUIRED FOLLOWING THE
AWARD DATE OF SUCH AWARD
------- --------------------------
61 and older.................. 2
55-60......................... 4
54 and under.................. 5
The amount of Dividend Equivalents paid to any named Executive during the
last fiscal year is disclosed in the ``Other Annual Compensation'' column in
the Summary Compensation Table.
Each year, the Company credits or debits an amount (Deferred Compensation
Amount) to each Share Unit outstanding at the end of a fiscal year equal,
subject to certain adjustments, to the per common share net increase or decrease
in Consolidated Retained Earnings for that fiscal year. The aggregate of annual
Deferred Compensation Amounts are payable in ten equal annual installments to
the recipient or, if he is no longer living, his designated beneficiaries or
estate beginning on the fifth month following the month in which the earlier of
the following occurs: retirement, death, disability or the recipient's election
to terminate employment with the Company following a hostile change in control
(as defined in the Plan). No Deferred Compensation Amounts accrue on Share Units
held by a recipient after the fiscal year in which his employment has terminated
due to retirement, disability, death or the recipient's election to terminate
following a hostile change in control. Furthermore, if a participant's
employment with the Company ceases other than by reason of retirement,
disability, death or termination of employment following a hostile change in
control, then all Share Units are forfeited and all future rights to Deferred
Compensation Amounts and dividend equivalentsDividend Equivalents on
10
12 account of such Share Units
lapse. Similarly, if a participant retires before age 65 (other than by reason
of death or disability or following a hostile change in control), without
providing the required additional years of service as discussed in footnote 1 to
the table above, then no post-retirement benefits will be payable to such
participant for such Share Units. During the fiscal year ended September 30,
1994, $.201996, $.61 was credited as a Deferred Compensation Amount on account of each
Share Unit. Interest accrues on the Deferred Compensation Amounts on Share Units
(for which the required additional years of service have been provided) only
after the date of retirement, disability, death or election of recipient to
terminate employment following a hostile change in control.
No Share Units were awarded under this Plan during the last fiscal
year.
PENSION PLAN
The table below shows estimated annual benefits payable at a normal
retirement date under the Employees' Retirement Plan of Laclede Gas
Company-ManagementCompany--Management Employees and the Laclede Gas Company Supplemental
Retirement Benefit Plan.
10
12
PENSION PLAN TABLE
ESTIMATED ANNUAL BENEFITS UPON RETIREMENT
AVERAGE YEARS OF SERVICE
FINAL -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
COMPENSATION 15 20 25 30 35 40 45
---------------- -- -- -- -- -- -- --
$125,000............ $ 75,000.................36,567 $ 21,40648,756 $ 28,54160,945 $ 35,67773,134 $ 42,81285,323 $ 49,94797,512 $ 57,082
100,000................. 28,918 38,558 48,197 57,836 67,476 77,115
125,000................. 36,793 49,058 61,322 73,586 85,851 98,115
150,000................. 44,668 59,558 74,447 89,336 104,226 119,115
200,000................. 60,418 80,558 100,697 120,836 140,976 161,115
250,000................. 76,168 101,558 126,947 152,336 177,726 203,115
300,000................. 91,918 122,558 153,197 183,836 214,476 245,115
350,000................. 107,668 143,558 179,447 215,336 251,226 287,115
400,000................. 123,418 164,558 205,697 246,836 287,976 329,115
450,000................. 139,168 185,558 231,947 278,336 324,726 371,115
500,000................. 154,918 206,558 258,197 309,836 361,476 413,115110,637
150,000............ 44,442 59,256 74,070 88,884 103,698 118,512 134,262
200,000............ 60,192 80,256 100,320 120,384 140,448 160,512 181,512
250,000............ 75,942 101,256 126,570 151,884 177,198 202,512 228,762
300,000............ 91,692 122,256 152,820 183,384 213,948 244,512 276,012
350,000............ 107,442 143,256 179,070 214,884 250,698 286,512 323,262
400,000............ 123,192 164,256 205,320 246,384 287,448 328,512 370,512
450,000............ 138,942 185,256 231,570 277,884 324,198 370,512 417,762
500,000............ 154,692 206,256 257,820 309,384 360,948 412,512 465,012
550,000............ 170,442 227,256 284,070 340,884 397,698 454,512 512,262
600,000............ 186,192 248,256 310,320 372,384 434,448 496,512 559,512
- -------------
" ``Average Final Compensation"Compensation'' is the higher of: (a) the annual average of
the highest 36 consecutive calendar months' compensation for the
participant's last 120 months of service; or (b) the annual average of the
highest three consecutive calendar years' compensation for the
participant's last ten calendar Years of Service. Compensation used for
pension formula purposes is the type of compensation included as "Salary"``Salary''
in the Summary Compensation Table.
11
13
Benefits shown in the table (the calculation of which, in some cases, takes
into account the portion of Average Final Compensation in excess of Social
Security covered compensation, and, in other cases, is calculated after the
deduction of Social Security offset amounts) assume retirement at age 65, the
Years of Service shown, continued existence of the current plans without
substantial change and payment in the form of a single life annuity. Years of
Service as of September 30, 19941996 for the persons named in the Summary
Compensation Table are as follows: R. C. Jaudes, 39 years; H. Elliott, Jr., 2141 years; D. H. Yaeger, 35
years; D. L. Godiner, 1416 years; K. J. Neises, 12 years; R. M. Lee, 18 years; and
R. J. Carroll, 38G. T. McNeive, Jr., 10 years.
OTHER PLANS
An Executive Salary Protection Program for Executive Officers provides that
if a participating Executive Officer (which includes the
five named Executive Officers in the Summary Compensation Table) dies while an active employee of the
Company, his or her beneficiaries will receive his or her annual salary for one
year, and one-half of his or her annual salary for the next nine years or
until the Executive Officer would have been 65 years old, whichever period is
longer. When an
11
13
Executive Officer dies after retiring from the Company, his or her beneficiaries
will receive an amount equal to twice his or her annual salary if he or she dies
prior to age 70, or one times his or her annual salary if he or she dies after
age 70.
The annual cost to the
Company of this program is approximately $85,000.
The Company provides supplemental travel and accident insurance
covering Officers and certain key employees. The supplemental insurance
provides coverage for accidental death or dismemberment in an amount up
to $250,000. Premiums expensed on behalf of the Officers during fiscal
1994 amounted to $1,688.
The Company, as of January 25, 1990, adopted a Management Continuity
Protection Plan pursuant to which the Company has entered into Management
Continuity Protection Agreements (the "Agreements"``Agreements'') with all of its Officers.
The Agreements provide that if the Officer's employment terminates for any
reason (other than death, disability or for actions involving moral turpitude)
within 54 months, in the case of Mr. Jaudes, or 42 months, in the case of all
other Officers, after a change in control of the Company, the Officer will
receive a non-
discountednon-discounted lump sum payment. The lump sum payment will be in an
amount equal to the Officer's average annual compensation for the five-year
period preceding termination multiplied by 2.99, in the case of Mr. Jaudes, or
2.00 for all other Officers. If the Officer remains employed by the Company for
more than six months after a change in control, the above benefit shall be
reduced, in the case of Mr. Jaudes, by one forty-eighth, or, in the case of all
other Officers, by one thirty-
sixththirty-sixth for each month beyond such six-month period.
In no
12
14 event, however, will the benefit be greater than the product of the
Officer's average monthly compensation for the five-year period preceding
termination and the number of months remaining from such termination until the
date the Officer will reach the age of 65. The Agreements expire upon the
earlier of (a) the effective date of the Officer's termination, if prior to a
change in control; or (b) 54 months, in the case of Mr. Jaudes, or 42 months, in
the case of all other Officers, after a change in control. Under the Agreements,
a "change``change in control"control'' occurs when any person becomes a beneficial owner,
directly or indirectly, of the Company's securities representing (a) more than
50 percent of the voting power of the Company's outstanding securities or (b) at
least 30 percent but no more than 50 percent of such securities and a majority
of the outside members of the Company's Board of Directors decides that a change
in control has occurred.
Previously, the Company established a Deferred Income Plan for: (i)
non-employee Directors, and (ii) employee Directors, Officers and certain other
employees who are deemed by the Compensation Committee of the Board of Directors
to be key executives who contribute materially to the prosperity of the Company.
The plan permitted deferral through April 30, 1990 for each of four consecutive
years of up to 100% of fees and retainers for non-employee Directors and up to
15% of salary (excluding incentive compensation) for other participants. Such
deferrals, along with applicable income growth factors (at rates not to exceed
the greater of (i) twelve percent per annum, and (ii) the annual corporate bond
rates specified in Moody's Investors Service plus four percent per annum), form
the basis for certain benefits payable to the participant upon retirement; death
or permanent and total disability before retirement; or termination of a
participant's status as a Director or employee before age 55. The amount of such
benefit depends on the type of triggering event, the amount deferred by a
participant, the ages at which deferrals are made and the participant's age at
the time of the triggering event. In the event a participant, following a change
in control of the Company, terminates thehis or her status as a Director or
employee for good reason, or is terminated by the Company without cause, such
12
14
participant is entitled to receive a lump sum benefit in the amount equal to the
greater of: (i) the present value of the account balance under the Deferred
Income Plan to which the participant would be entitled if he or she had
continued to make deferrals during the remainder of the annual deferral period
and if he or she had terminated his or her status as a Director or employee
after reaching normal retirement age (for this purpose, age 70 for all
Directors, and age 65 for all other participants); or (ii) the amount of the
participant's account balance. At the Board of Directors' meeting on September
23, 1993, the Board approved a separate Deferred Income Plan II. Deferred Income
Plan II provides that the Board of Directors may from time to time determine to
open up the Deferred Income Plan II to allow deferrals during one or more
succeeding annual periods and to allow new participants in the Deferred Income
Plan. The first deferral period ran from October 1,
1993 to December 31, 1993 (during which time only employee participantsParticipants were permitted to make deferrals) and a second deferral period ran from
January 1, 1994 to December 31, 1994 (during which time all
13
15
participants were permittedallowed to make deferrals including non-employee
Directors). Participantsduring the 1996 calendar year
and will also be allowed to make deferrals during the 19951997 calendar year. During
each deferral period a non-employee Director participant may defer up to 100% of
fees and retainers and an employee participant may defer up to 15% of his or her
annual salary (excluding incentive compensation). In addition, under Deferred
Income Plan II the minimum applicable income growth factor for deferrals on and
after October 1, 1993 shall not exceed the greater of: (i) nine percent per
annum; and (ii) the annual corporate bond rates specified in Moody's Investors
ServicesService plus three percent per annum. The remainder of the terms of the Deferred
Income Plan II are similar to those of the original Deferred Income Plan
discussed above.
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN ANY OF THE COMPANY'S
FILINGS UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, THAT MIGHT INCORPORATE THIS PROXY STATEMENT, IN WHOLE
OR IN PART, THE FOLLOWING COMPENSATION COMMITTEE REPORT REGARDING EXECUTIVE
COMPENSATION AND THE PERFORMANCE GRAPH ON PAGE 1716 SHALL NOT BE INCORPORATED BY
REFERENCE INTO ANY SUCH FILINGS.
COMPENSATION COMMITTEE REPORT REGARDING EXECUTIVE COMPENSATION
The Compensation Committee of the Board of Directors, composed of four
independent non-employee Directors, administers the Company's executive
compensation program. None of such members is or has been an Officer or employee
of the Company or any of its subsidiaries. After review and approval by the
Committee, all material issues relating to executive compensation are submitted
to the Board for consideration and approval.
The philosophy of the Committee as it relates to executive compensation is
that the Chief Executive Officer (CEO) and other Executive Officers should be
compensated at levels designed to attract, motivate, and retain talented
Executives who are capable of leading the Company in achieving its business
objectives in an industry facing increasing complexity, competition, and change;
to encourage and reward excellent performance; and to encourage individual
growth as a part of the Company's management development program. Annual
compensation for Laclede'sthe Company's senior
13
15
management consists of salary, and for certain key Executives, a long-term
Incentive Compensation Plan.
Salary levels of Company Executives are reviewed and may be adjusted
annually. Salaries are also increased to recognize promotions and assignment of
increased responsibilities to the Company. In determining appropriate salaries,
the Committee considers: (1) the CEO's recommendations as to compensation for
all other Executive Officers; (2) the scope of responsibility, experience, time
in position, and individual
14
16 performance for all Officers including the CEO; (3)
internal fairness and equity among positions held by each Executive Officer; (4)
special factors such as each individual's willingness and ability to accept
special assignments and responsibilities; (5) general cognizance of pay
practices of major companies within the St. Louis region as well as within the
utility industry generally relating to Executives of comparable responsibility;
and (6) corporate performance. Evaluation of corporate performance takes into
account the significant effects which weather variations as well as other
unusual events may have on the Company's earnings per share and other financial
and operating results as compared to corporate budgeted levels. The Committee's
analysis is a subjective process which utilizes no specific weighting or formula
of the aforementioned factors in determining Executives' base salaries.
Awards under the Company's long-term Incentive Compensation Plan aremay be
granted by Committee recommendation and Board approval to the CEO and/or certain
other key Executives (including the CEO) who have, in the judgment of the Committee, demonstrated
great ability and who the Company seeks to retain in positions which can affect
the long-term success of the Company, including both the establishment and
execution of the Company's business strategies. Under this Plan, upon the
recommendation of the Compensation Committee, the Board of Directors, exclusive
of any employee Director who is eligible to participate in the Plan, may award
Share Units to these key Executives. The Executives are paid quarterly dividend
equivalents on these Share Units at the same rate that dividends are paid to
stockholders. Share Units also have a deferred compensation component based on
changes in the Company's retained earnings over the course of a year. Such
deferred compensation is payable upon the Executive's retirement. Current
compensation under this Plan is limited to 25% of the Executive's current annual
salary. Awards granted under this Plan are intended to encourage the continued
employment of these talented Executives. Toward that end, this Plan requires
that an Executive provide a certain number of additional years of service after
the date of an award of Share Units in order for post-retirement dividend
equivalents and deferred compensation amounts associated with that award to be
paid. This Plan provides compensation which is directly linked with earnings per
share achievement, a critical factor in creating increased shareholder value.
Determination of the number of Share Units to award to a key Executive is a
subjective process which considers an individual's current salary level, the
number of Share Units previously awarded, as well as expectations for the
Executive's performance relative to maintaining the long-term financial and
operational integrity of the Company.
During 1994, no additional14
16
The compensation of all Executive Officers was considered and adjusted in
January 1996. Also, the Board of Directors, in recognition of the prior
performance and an increased level of responsibility of several of the Company's
Senior Officers, awarded new Share Units were
awarded.to them, as set forth in greater detail
elsewhere in this proxy statement. Such Share Unit awards are intended, among
other things, to relate a portion of executive compensation more directly with
the long-term interests of shareholders. Further, salary for fiscal year 1996 in
the Summary Compensation Table contained on page 8 of this proxy statement
reflects a full year of salary increases, effective September 1, 1995, granted
to various Officers who assumed substantially increased responsibilities on that
date, as part of a realignment of management assignments related to the
retirement of two Senior Officers.
In determining the total compensation package of the CEO for 1994,1996, the
Compensation Committee considered all of the matters discussed above. The
Committee also considered the attainment of corporate-wide budgeted goals,
giving recognition to factors such as weather, interest rates and regulatory
policies which can significantly impact operating results of gas utilities but
are generally outside the control of management. Further, the Committee
considered subjective factors related to individual performance and
increased responsibility for the long-term strategic direction of the Company. Noted was
the CEO's leadership as
15
17
evidenced by his directionin: (1) the formulation and implementation of various
policies directed toward the Company's promptchallenges and effective response toopportunities resulting from the
worst floodsrestructuring of the natural gas industry in the service area's
history; as well as his managementaftermath of the Company's response tocertain decisions
of the Federal Energy Regulatory Commission mandated restructuringCommission; (2) the consummation of new
permanent financing transactions, including the sale of 1,575,000 new shares of
Common Stock, on terms favorable to both the Company's shareholders and
customers; (3) the re-examination of certain Company operations, which resulted
in improvements in productivity, additional revenue-producing activities, and
enhanced customer satisfaction; and (4) the successful transition of the
interstate pipeline industry, whichCompany's realigned management team in response resulted in arrangements
under whichto the Company was assuredretirement of the availability of dependable
and cost effective natural gas supplies. Also, in January 1994, Mr.
Jaudes was elected Chairman of the Board of Directors.two Senior
Officers.
Compensation Committee
Boyd F. Schenk,H. Edwin Trusheim, Chairman
James L. HoaglandMary Ann Krey
William E. Nasser
Robert P. Stupp
H. Edwin Trusheim15
17
PERFORMANCE GRAPH
The following Performance Graph compares the performance of the Company's
Common Stock to the Standard & Poor's 500 Stock Index and to the Standard &
Poor's Utilities Index for the Company's last five fiscal years. The graph
assumes that the value of the investment in the Company's Common Stock and each
index was $100 at September 30, 19891991 and that all dividends were reinvested. The
information contained in this graph is not necessarily indicative of future
Company performance.
16
18
COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN
LACLEDE GAS COMPANY, S&P 500, AND S&P UTILITIES
[PERFORMANCE GRAPH]
FISCAL YEAR ENDED SEPTEMBER 30
1989 1990- ------------------------------------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996
- ------------------------------------------------------------------------------------------------------------------
Laclede $100.00 $108.68 $137.85 $156.04 $218.92 $196.38$113.21 $158.80 $142.45 $148.05 $183.86
- ------------------------------------------------------------------------------------------------------------------
S&P 500 $100.00 $90.76 $119.04 $132.20 $149.39 $154.89$111.05 $125.49 $130.11 $168.82 $203.14
- ------------------------------------------------------------------------------------------------------------------
S&P Utilities $100.00 $98.99 $114.70 $131.19 $163.23 $141.85$114.37 $142.31 $123.67 $157.78 $168.55
- ------------------------------------------------------------------------------------------------------------------
16
18
COMPENSATION OF DIRECTORS
Directors who were not employees of the Company received a monthly retainer
fee of $1,000 per month through December 1993 and $1,250 per month thereafter during fiscal year 1994.1996. Also, all Directors received a
fee of $1,000 for each Board meeting attended personally; and $500 for each
Board meeting attended via telephone conference call. Directors received fees of
$500 for each committee meeting attended personally; and $250 for each committee
meeting attended via telephone conference call. Each Chairman of a Committee of
the Board
17
19 except for the Nominating Committee Chairman received an additional
$1,000 annual fee. All non-employee Directors are permitted to elect to defer
all or any part of their compensation under arrangements which apply equally to
all such non-employee Directors.
The Company has also established a retirement plan for each of its
non-employee Directors who serves at least five years as a Director or who dies
while serving as a Director. Pursuant to this plan, the eligible Director (the
"Participant"``Participant''), or the Participant's designated beneficiary, would, following
the discontinuance of the Participant's service as a Director (or following the
Participant's attaining 65 years of age, if the Participant is not at least 65
years old at the time of such discontinuance of service), receive an annual
retirement payment amount equal to a percentage (the "Applicable Percentage"``Applicable Percentage'')
of the annual Board retainer fee at the time of such Participant's
discontinuance of service. The Applicable Percentage shall be 10% for each of
the first ten years of service of such Participant as a Director. The annual
payments to the retired Participant shall continue until such Participant's
death, but if such Participant shall die before receiving at least ten annual
payments, then such Participant's designated beneficiary shall, during such
beneficiary's lifetime, receive the remainder of the first ten annual payments
which the deceased Participant would have received.
In 1990, the Company established the Restricted Stock Plan for Non-
EmployeeNon-Employee
Directors, the term of which was extended to January 26, 2000. Under this Plan,
a grant of 800 restricted shares will be made on the date a person first begins
serving as a non-employee Director. Each non-employee Director will receive an
additional grant of 200 restricted shares on the date of each subsequent Annual
Meeting of Stockholders for services rendered by such non-employee Director
during the preceding year. The 800 share and 200 share amounts of future
grants were increased from 400 shares and 100 shares, respectively, to
reflect the impact of the two-for-one stock split effectuated on
February 11, 1994. Although a non-employee Director is entitled to vote
and may receive the dividends on the restricted shares, the restricted shares
are forfeitable until vested pursuant to a schedule based upon the non-employee
Director's years of participation in, and, in some cases, age at time of
entering, the Restricted Stock Plan. Pursuant toUnder a Trust Agreement between the Company
and Boatmen's Trust Company, as Trustee, shares granted pursuant to the
Restricted Stock Plan are purchased on the open market by the Trustee, and held
in trust until vested in the non-employee Director. In January 1994, Messrs. Hoagland
and Schenk each1996, Mr. Beumer
received a grant of 100 vested800 nonvested shares; Ms. Krey and Messrs. Craig, Givens, Stupp and Trusheim each received a grant of 100
nonvested shares; and Messrs. Craig,
Holman and Nasser each received a grant of 400200 nonvested shares; and Messrs.
Stupp and Trusheim received a grant of 100 vested and 100 non-vested shares.
17
19
PROPOSAL 2. APPOINTMENT OF AUDITORS
The Board of Directors, upon recommendation of its Audit Committee,
recommends that the stockholders ratify the appointment of Deloitte & Touche LLP
Certified Public Accountants, to audit the accounts of the Company and its
subsidiaries for the fiscal year ending 18
20
September 30, 1995.1997. The vote of a
majority of the outstanding shares entitled to vote and represented in person or
by proxy will be necessary to effect the ratification described above. Thus, in
this context, the effect of an abstention will be the same as a negative vote.
Deloitte & Touche LLP is the successor to the firm that has acted as auditors of
the Company since 1953. It is expected that a representative of Deloitte &
Touche LLP will be present at the Annual Meeting, will have an opportunity to
make a statement if he or she desires to do so, and will be available to respond
to appropriate questions.
During fiscal year 1994,1996, Deloitte & Touche LLP performed audit services
primarily related to the limited review of quarterly reports and the examination
of annual consolidated financial statements submitted to stockholders and the
Securities and Exchange Commission and the audit of the various employee benefit
plans of the Company.
YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE RATIFICATION OF
---
OF
THE APPOINTMENT OF DELOITTE & TOUCHE LLP AS INDEPENDENT AUDITORS.
OTHER MATTERS
The Board of Directors does not know of any matters to be presented at the
meeting other than those stated in this proxy statement. However, if other
matters related to the purpose of the meeting properly come before the meeting,
it is the intention of the persons named in the accompanying proxy to vote said
proxies on such other matters in accordance with their judgment.
18
20
SOLICITATION OF PROXIES
Proxies will be solicited by mail. They may also be solicited by Officers
and regular employees of the Company, personally or by telephone or telegraph,
but such persons will not be specially compensated for such services. The firm
of Morrow & Co., Inc. has been retained to assist with the solicitation of
proxies at a cost of approximately $5,000. It is contemplated that brokerage
houses, custodians, nominees and fiduciaries will be requested to forward the
soliciting material to the beneficial owners of stock held of record by such
persons, and will be reimbursed for expenses incurred therein. The entire cost
of solicitation will be borne by the Company.
LACLEDE GAS COMPANY
By DONALD L. GODINER, Secretary
St. Louis, Missouri
December 27, 199420, 1996
19
21
Laclede Gas
Company[LOGO]
LACLEDE GAS
COMPANY
NOTICE OF
ANNUAL MEETING
OF STOCKHOLDERS
AND
PROXY STATEMENT
JANUARY 26, 199523, 1997
22
P
R
O
X
Y[LOGO] LACLEDE GAS COMPANY
720 OLIVE STREET, ST. LOUIS, MISSOURI 63101
P THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
R The undersigned hereby appoints Robert J. Carroll, Donald L. Godiner, Robert C.
Jaudes, Gerald T. McNeive, Jr. and each of them, with or without
O any of the others, attorneys and proxies, with full power of
substitution, to vote all of the shares of common stock in Laclede
X Gas Company which the undersigned is entitled to vote at the Annual
Meeting of Stockholders of said corporation to be held at
Y Marriott's Pavilion Hotel, on Thursday, January 26, 1995,23, 1997, at 10:00
a.m. local time, and at any adjournment thereof: (1) as hereinafter
specified upon the proposals listed below and as more particularly
described in the Company's proxy statement, receipt of which is
hereby acknowledged; and (2) in their discretion upon such other
matters as may properly come before the Annual Meeting of
Stockholders.
A VOTE FOR THE FOLLOWING PROPOSALS IS RECOMMENDED BY THE BOARD.
---
1. ELECTION OF DIRECTORS: H. Givens, Jr., M. A. Krey,Andrew B. Craig, III, C. Ray Holman and
H. Edwin
Trusheim.William E. Nasser.
/ / FOR all nominees listed. / / FOR all nominees listed
except__________
__________except _________________
__________________
/ / WITHHOLD AUTHORITY to vote for all nominees listed.
2. RATIFICATION OF THE SELECTION OF DELOITTE & TOUCHE LLP as
independent auditors.
/ / FOR / / AGAINST / / ABSTAIN
(Continued and to be signed on reverse side.)
23
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY
THE UNDERSIGNED STOCKHOLDER. IF NO DIRECTION IS MADE, THE PROXY WILL BE VOTED
FOR PROPOSALS 1 AND 2.
Dated---------------, 19---
.........................................
.........................................Dated___________________________, 19______
________________________________________
________________________________________
IMPORTANT: PLEASE DATE
THIS PROXY AND SIGN
EXACTLY AS YOUR NAME(S)
APPEARS THEREON. IF STOCK
IS HELD JOINTLY, SIGNATURE
SHOULD INCLUDE BOTH NAMES.
EXECUTORS, ADMINISTRATORS,
TRUSTEES, GUARDIANS, AND
OTHERS SIGNING IN A
REPRESENTATIVE CAPACITY
SHOULD SO INDICATE.
PROXY MUST BE RETURNED BY JANUARY 26, 199523, 1997.
24
APPENDIX
The information in the Performance Graph on page 1716 of the definitive
proxy statement of Laclede Gas Company is depicted in the table that
immediately follows the graph.