​
UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549

SCHEDULE 14A


(RULE 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.      )

Filed by the Registrant[X]
Filed by a Party other than the Registrant[   ]

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[X]Definitive Proxy Statement
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[   ]Soliciting Material under §240.14a-12

Park Electrochemical Corp.
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, If Other than Registrant)

☐
Preliminary Proxy Statement
​
☐
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
​
☒
Definitive Proxy Statement
​
☐
Definitive Additional Materials
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☐
Soliciting Material under §240.14a-12
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Park Aerospace Corp.
​
(Name of Registrant as Specified in Its Charter)
​
(Name of Person(s) Filing Proxy Statement, If Other than the Registrant)
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June 14, 2019

Dear Park Shareholder,

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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.
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PARK AEROSPACE CORP.
1400 Old Country Road
Westbury, New York 11590
Notice of Annual Meeting of Shareholders
July 21, 2020
The Annual Meeting of Shareholders of Park Electrochemical Corp.PARK AEROSPACE CORP. (the “Company”) will be held on Tuesday, July 16, 201921, 2020 at 11:00 A.M. As in recent past years,, E.D.T. Due to concerns about the COVID-19 pandemic and the related protocols implemented by federal, state and local governments, we plan to conduct this year’s Annual Meeting of Shareholders completely virtually via live webcast. You will be heldable to attend and participate in the Annual Meeting online, vote your shares electronically and submit your questions prior to and during the meeting by visiting www.meetingcenter.io/254901410 at the officesmeeting date and time described in the accompanying Proxy Statement. The password for the meeting is PKE2020. The Annual Meeting is being held, for the following purposes:
1.
To elect the five (5) directors named in the accompanying Proxy Statement to serve until the next annual meeting of shareholders and until their successors are elected and qualified, subject to earlier resignation, retirement or other termination of service;
​
2.
To approve, on an advisory (non-binding) basis, the compensation of the Company, 48 South Service Road, Melville, New York.

This year, in addition to the customary election of directors, advisory approval ofCompany’s named executive officers’ compensation and ratification ofofficers;

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3.
To ratify the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm you are being askedfor the fiscal year ending February 28, 2021; and
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4.
To transact such other business as may properly come before the meeting.
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The requirement under New York corporate law to approvehold an in-person meeting has been suspended by executive order by the changeGovernor of the Company’s name from Park Electrochemical Corp.State of New York. To the extent such suspension is not extended to Park Aerospace Corp. The name change is consistent with the completiondate of the transformation of the Company from an electronics company to an aerospace company. These proposals are more fully described in the accompanying Notice and Proxy Statement.

At our Annual Meeting, we plan to review and discuss recent developments and items of interest related to Park’s aerospace business. We also will be available to answer questions and inquiries about our business and business activities.

We hope to see you at the Annual Meeting.

Sincerely,

Brian E. Shore
Chairman and Chief Executive Officer

PARK ELECTROCHEMICAL CORP.
48 South Service Road
Melville, New York 11747

Notice ofmay provide a venue for an in-person Annual Meeting, of Shareholders

July 16, 2019

The Annual Meeting of Shareholders of PARK ELECTROCHEMICAL CORP. (the “Company”) will be heldin addition to virtual participation. In that case, we would notify our shareholders in advance on the Company’s web site at www.parkaerospace.com under the offices ofcaption “Shareholders” and by issuing a press release and filing it as additional proxy material with the Company, 48 South Service Road, Melville, New York on Tuesday, July 16, 2019 at 11:00 A.M., New York time, for the following purposes:

1.

To elect the five (5) directors named in the accompanying Proxy Statement to serve until the next annual meeting of shareholders and until their successors are elected and qualified;

2.

To approve, on an advisory (non-binding) basis, the compensation of the named executive officers;

3.

To approve an amendment of the Restated Certificate of Incorporation of the Company, dated March 28, 1989, as amended, to change the name of the Company from “Park Electrochemical Corp.” to “Park Aerospace Corp.”;

4.

To ratify the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm for the fiscal year ending March 1, 2020; and

5.

To transact such other business as may properly come before the meeting.

Securities and Exchange Commission.

Only holders of record of Common Stock at the close of business on June 7, 20195, 2020 will be entitled to notice of, and to attend and vote at, the meeting or any adjournment or postponement thereof.

By Order of the Board of Directors,

Stephen E. Gilhuley

Executive Vice President – Administration

and Secretary

If you are a registered shareholder (i.e., you hold your shares through our transfer agent, Computershare), you do not need to register to attend the Annual Meeting virtually on the Internet. Please visit www.meetingcenter.io/254901410, login with your 15-digit control number (found on your proxy card or in an email you previously received from Computershare) and, if prompted for an additional code, enter: PKE2020. If you hold your shares through an intermediary, such as a bank or broker, you must register in advance to attend the Annual Meeting virtually on the Internet. To register to attend the Annual Meeting online by webcast you must obtain a legal proxy from your bank, broker or other nominee and then register in advance by submitting the legal proxy, along with your name and email address to Computershare. Requests for registration must be labeled as “Legal Proxy” and be received no later than 5:00 p.m., E.D.T., on July 16, 2020.
Requests for registration should be directed to us at the following:
By email:
Forward the email from your broker, or attach an image of your legal proxy, to legalproxy@computershare.com.

​

By mail:
Computershare
PARK AEROSPACE CORP. Legal Proxy
P.O. Box 43001
Providence, RI 02940-3001
You will receive a confirmation of your registration with a control number by email from Computershare. At the time of the Annual Meeting, registered beneficial shareholders can visit www.meetingcenter.io/​254901410 (password: PKE2020) and enter the control number.
By Order of the Board of Directors,
Constantine Petropoulos
Senior Vice President & General Counsel
Dated: June 14, 2019

ALL SHAREHOLDERS ARE CORDIALLY INVITED TO ATTEND THE MEETING. WHETHER OR NOT YOU EXPECT TO BE PRESENT IN PERSON, PLEASE DATE AND SIGN THE ENCLOSED FORM OF PROXY AND RETURN IT PROMPTLY TO THE COMPANY IN THE ENCLOSED ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.

18, 2020


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PARK ELECTROCHEMICALAEROSPACE CORP.
48 South Service1400 Old Country Road
Melville,Westbury, New York 11747

11590
PROXY STATEMENT

P R O X Y S T A T E M E N T

Annual Meeting of Shareholders
July 16, 2019

21, 2020

This Proxy Statement is furnished in connection with the solicitation by the Board of Directors (the “Board”) of Park ElectrochemicalAerospace Corp. (the “Company”) of proxies with respect to the Annual Meeting of Shareholders of the Company to be held on July 16, 2019,21, 2020, and any adjournment or postponement thereof (the “Meeting”). Any shareholder of record giving a proxy (the form for which is enclosed with this Proxy Statement) has the power to revoke it at any time before it is voted by (i) delivering written notice of revocation bearing a later date than the proxy to the SecretaryGeneral Counsel of the Company, (ii) submitting a later-dated proxy or (iii) virtually attending the Meeting and voting in person.online. A beneficial owner (an owner who is not a shareholder of record) will receive a voting instruction form from such owner’s bank, broker or other nominee. To revoke any prior instruction, a beneficial owner should contact such owner’s bank, broker or other nominee in the time period specified in the voting instruction form, which will be at least prior to the time such bank, broker or other nominee exercises the voting instruction.

This Proxy Statement and the accompanying form of proxy are first being mailed on or about June 14, 201918, 2020 to all shareholders of record as of the close of business on June 7, 2019.

Driving directions can5, 2020.

Due to concerns about the COVID-19 pandemic and the related protocols implemented by federal, state and local governments, this year’s Annual Meeting of Shareholders will be obtained froma completely virtual meeting conducted via live webcast. You will not be able to attend the Corporate Secretaryannual meeting in person. You will be able to attend and participate in the Annual Meeting online, vote your shares electronically and submit your questions prior to and during the meeting by visiting: www.meetingcenter.io/254901410 and following the instructions in the Notice of Annual Meeting of Shareholders. The password for the meeting is PKE2020. The meeting will begin promptly at 11:00 A.M., E.D.T., and online access will open fifteen minutes prior to the start of the meeting. Whether or not shareholders plan to attend the Annual Meeting, the Company urges them to vote and submit their proxy in advance of the Annual Meeting.
The requirement under New York corporate law to hold an in-person meeting has been suspended by executive order by the Governor of the State of New York. To the extent such suspension is not extended to the date of our Annual Meeting, we also may provide a venue for an in-person Annual Meeting, in addition to virtual participation. In that case, we would notify our shareholders in advance on the Company’s officeweb site at 48 South Service Road, Melville, NY 11747 or sgilhuley@parkelectro.com or mbarkochva@parkelectro.com or (631) 465-3612.

www.parkaerospace.com under the caption “Shareholders” and by issuing a press release and filing it as additional proxy material with the Securities and Exchange Commission.

Important Notice Regarding the Availability of Proxy Materials for the 20192020 Annual Meeting of Shareholders to be held on July 16, 2019:

21, 2020:

This Proxy Statement for the 20192020 Annual Meeting of Shareholders and the Company’s Annual Report on Form 10-K for the fiscal year ended March 3, 20191, 2020 are available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders”. References to the Company’s web sitesites in this Proxy Statement are not intended to function as hyperlinks and, except as specified herein, the information contained on, or that can be accessed through, any such website is not part of this Proxy Statement.

VOTING SECURITIES

As of June 7, 2019,5, 2020, the outstanding voting securities of the Company consisted of 20,492,15320,381,426 shares of Common Stock, par value $.10 per share, of the Company (the “Common Stock”), each of which is entitled to one vote. Presence in personat the virtual meeting or by proxy of holders of a majority of the outstanding shares of Common Stock will constitute a quorum for the transaction of business at the Annual Meeting. Abstentions and broker non-votes, if any, will be included for purposes of determining a quorum.


1
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As of June 7, 2019,5, 2020, all directors and executive officers of the Company as a group (10(9 persons) beneficially owned an aggregate of 1,727,5231,357,309 shares of Common Stock (including an aggregate of 386,509336,134 shares which such directors and executive officers may acquire pursuant to options that are exercisable as of June 7, 20195, 2020 or will become exercisable within 60 days thereafter), constituting approximately 8.3%6.7% of the outstanding shares of Common Stock (giving effect to the exercise of such options).

STOCK OWNERSHIP

Beneficial Ownership of Principal Shareholders

The following table sets forth information as of June 7, 20195, 2020 with respect to shares of Common Stock beneficially owned (for purposes of the rules of the Securities and Exchange Commission) by each person (including any “group” of persons as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), who is known to the Company to be the beneficial owner (for purposes of the rules of the Securities and Exchange Commission) of more than 5% of the outstanding shares of Common Stock as of that date.

Name and Address of Beneficial Owner

​

​
Amount and
Nature of
Beneficial
Ownership

​

​
Percent
of
Class

​

BlackRock, Inc.


55 East 52nd52nd Street
New York, NY 10055

2,855,703(a)

​

13.9%

​		​​3,064,920(a)​​​​​15.0%​​

Renaissance Technologies LLC
800 Third Avenue
New York, NY 10022
​​​​1,517,397(b)​​​​​7.5%​​
The Vanguard Group, Inc.


100 Vanguard Boulevard
Malvern, PA 19355

1,817,619(b)

​

8.9%

​		​​1,391,136(c)​​​​​6.8%​​

Raging Capital Management, LLC


William C. Martin
Ten Princeton Avenue
P.O. Box 228
Rocky Hill, NJ 08553

1,740,303(c)

​

8.5%

​		​​1,262,838(d)​​​​​6.2%​​

Renaissance Technologies LLC

800 Third Avenue
New York, NY 10022

1,614,030(d)

7.9%

Brian E. Shore


c/o Park ElectrochemicalAerospace Corp.
48 South Service1400 Old Country Road
Melville,Westbury, NY 11747

11590

1,517,769(e)

​

7.3%

​		​​1,182,890(e)​​​​​5.8%​​

Peter Shore

31 Harbor Park Drive
Centerport, NY 11721

1,203,658(f)

5.9%

Robin Shore

159 Chestnut Street
Cambridge, MA 02139

1,200,659(g)

5.9%

Dimensional Fund Advisors LP


Building One
6300 Bee Cave Road
Austin, TX 78746

1,179,072(h)

​

5.8%

​		​​1,182,476(f)​​​​​5.8%​​

​
(a)
BlackRock, Inc., a parent holding company, holds sole voting power over all such shares and sole dispositive power over all of such shares, based on an amendment to its Schedule 13G filed on February 4, 2020 under the Exchange Act, which represented 15.0% of the outstanding shares of the Company’s Common Stock as of June 5, 2020.
​
(b)
Renaissance Technologies LLC, an investment adviser, and Renaissance Technologies Holdings Corporation, because of its majority ownership of Renaissance Technologies LLC, holds sole voting power over 1,505,286 of such shares, sole dispositive power over 1,511,744 of such shares and shared dispositive power over 5,653 of such shares, based on an amendment to its Schedule 13G filed on February 13, 2020 under the Exchange Act, which represented 7.5% of the outstanding shares of the Company’s Common Stock as of June 5, 2020.
​
 

(a)

BlackRock, Inc., a parent holding company, holds sole voting power over 2,855,703 of such shares and sole dispositive power over all of such shares, based on an amendment to its Schedule 13G filed on January 2, 2019 under the Exchange Act, which represented approximately 13.9% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

2
2

(b)

The Vanguard Group, a parent holding company, holds sole voting power over 29,935 of such shares, shared voting power over 1,086 of such shares, sole dispositive power over 1,787,712 of such shares and shared dispositive power over 29,907 of such shares, based on an amendment to its Schedule 13G filed on February 11, 2019 under the Exchange Act, which represented approximately 8.9% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

(c)

Raging Capital Management, LLC, a parent holding company, and William C. Martin, Chairman, Chief Investment Officer and Managing Member of Raging Capital Management, LLC, hold shared voting power and shared dispositive power over all of such shares, based on the Schedule 13G filed on February 14, 2019 under the Exchange Act, which represented approximately 8.5% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

(d)

Renaissance Technologies LLC, an investment adviser, and Renaissance Technologies Holdings Corporation, because of its majority ownership of Renaissance Technologies LLC, holds sole voting power and sole dispositive power over 1,534,900 of such shares and shared dispositive power over 29,871 of such shares, based on an amendment to its Schedule 13G filed on February 13, 2019 under the Exchange Act, which represented approximately 7.9% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

(e)

Includes 196,250 shares which Mr. Shore may acquire pursuant to options exercisable as of, or within 60 days after, June 7, 2019, 728,599 shares owned by the estate of the late Mr. Jerry Shore of which estate Brian E. Shore is a co-executor, with his siblings, Peter Shore and Robin Shore, and of which shares he disclaims beneficial ownership except to the extent of his pecuniary interest therein, and 168,615 shares owned by the estate of the late Cecile Shore, spouse of the late Jerry Shore, of which estate Brian E. Shore is a co-executor, with his siblings, Peter Shore and Robin Shore, and of which shares he disclaims beneficial ownership except to the extent of his pecuniary interest therein. Mr. Shore holds sole voting power and sole dispositive power over 424,305 of such shares and shared voting power and shared dispositive power over 897,214 of such shares. All such shares represented approximately 7.3% of the outstanding shares of the Company’s Common Stock as of June 7, 2019 (giving effect to the exercise of such options).

(f)

Based on information provided to the Company by Peter Shore. Includes 728,599 shares owned by the estate of the late Jerry Shore, of which estate Peter Shore is a co-executor, with his siblings, Brian E. Shore and Robin Shore, and of which shares he disclaims beneficial ownership except to the extent of his pecuniary interest therein, and 168,615 shares owned by the estate of the late Cecile Shore, spouse of the late Jerry Shore, of which estate Peter Shore is a co-executor, with his siblings, Brian E. Shore and Robin Shore, and of which shares he disclaims beneficial ownership except to the extent of his pecuniary interest therein. Mr. Shore holds sole voting power and sole dispositive power over 306,444 of such shares and shared voting power and shared dispositive power over 897,214 of such shares. All such shares represented approximately 5.9% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

(g)

Based on information provided to the Company by Robin Shore. Includes 728,599 shares owned by the estate of the late Jerry Shore, of which estate Robin Shore is a co-executor, with her siblings, Brian E. Shore and Peter Shore, and of which shares she disclaims beneficial ownership except to the extent of her pecuniary interest therein, and 168,615 shares owned by the estate of the late Cecile Shore, spouse of the late Jerry Shore, of which estate Robin Shore is a co-executor, with her siblings, Brian E. Shore and Peter Shore, and of which shares she disclaims beneficial ownership except to the extent of her pecuniary interest therein. Ms. Shore holds sole voting power and sole dispositive power over 303,445 of such shares and shared voting power and shared dispositive power over 897,214 of such shares. All such shares represented approximately 5.9% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.

(h)

Dimensional Fund Advisors LP, an investment adviser, holds sole voting power over 1,179,072 of such shares and sole dispositive power over all of such shares, based on an amendment to its Schedule 13G filed on February 8, 2019 under the Exchange Act, which represented approximately 5.8% of the outstanding shares of the Company’s Common Stock as of June 7, 2019.


3

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(c)
The Vanguard Group, a parent holding company, holds sole voting power over 27,113 of such shares, shared voting power over 1,086 of such shares, sole dispositive power over 1,374,216 of such shares and shared dispositive power over 16,920 of such shares, based on an amendment to its Schedule 13G filed on February 12, 2020 under the Exchange Act, which represented 6.8% of the outstanding shares of the Company’s Common Stock as of June 5, 2020.
​
(d)
Raging Capital Management, LLC, a parent holding company, and William C. Martin, Chairman, Chief Investment Officer and Managing Member of Raging Capital Management, LLC, hold shared voting power and shared dispositive power over all of such shares, based on an amendment to its Schedule 13D filed on March 30, 2020 under the Exchange Act, which represented 6.2% of the outstanding shares of the Company’s Common Stock as of June 5, 2020.
​
(e)
Includes 176,250 shares which Mr. Shore may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020, 424,896 shares owned by six trusts for the benefit of Brian E. Shore and his siblings, Peter Shore and Robin Shore, created under the wills of the late Jerry Shore, Brian Shore’s deceased father, and the late Cecile Shore, deceased spouse of the late Jerry Shore and Brian Shore’s deceased mother, of which trusts Brian Shore is a co-trustee, with his siblings, Peter Shore and Robin Shore, and of which shares he disclaims beneficial ownership except to the extent of his pecuniary interest therein. Mr. Shore holds sole voting power and sole dispositive power over 581,744 of such shares and shared voting power and shared dispositive power over 424,896 of such shares. All such shares represented 5.8% of the outstanding shares of the Company’s Common Stock as of June 5, 2020 (giving effect to the exercise of such options).
​
(f)
Dimensional Fund Advisors LP, an investment adviser, holds sole voting power over all such shares and sole dispositive power over all of such shares, based on an amendment to its Schedule 13G filed on February 12, 2020 under the Exchange Act, which represented 5.8% of the outstanding shares of the Company’s Common Stock as of June 5, 2020.
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Beneficial Ownership of Directors and Executive Officers

The following table sets forth information as of June 7, 20195, 2020 with respect to shares of Common Stock beneficially owned (for purposes of the rules of the Securities and Exchange Commission) by each director and nominee, by each executive officer of the Company who is identified in the “Summary Compensation Table” elsewhere in this Proxy Statement and by all directors and executive officers of the Company as a group (including shares which such persons may acquire pursuant to options that are exercisable as of June 7, 20195, 2020 or within 60 days thereafter). Each owner, except Mr. Shore, holds sole voting power and sole dispositive power over the shares of Common Stock listed below.

Name of Beneficial Owner

​

​
Amount and
Nature of
Beneficial
Ownership

​

​
Percent
of
Class

​

Dale Blanchfield

18,750(a)

​

​

​​17,875(a)​​​​​*

​​

Emily J. Groehl

18,759(b)

​

​

​​20,384(b)​​​​​*

​​

Brian E. Shore

1,517,769(c)

​

7.3%

​		​​1,182,890(c)​​​​​5.8%​​

Carl W. Smith

8,875(d)

​

​

​​12,375(d)​​​​​*

​​

Steven T. Warshaw

22,000(e)

​

​

​​20,375(e)​​​​​*

​​

Mark A. Esquivel

​​​​31,875(f)​​​​​*​​
P. Matthew Farabaugh

45,785(f)

​

​

​​42,285(g)​​​​​*

​​

Mark A. Esquivel

Constantine Petropoulos

24,375(g)

​

​

​​24,500(h)​​​​​*

​​

Stephen E. Gilhuley

Benjamin W. Shore

51,210(h)

​

​

​​4,750(i)​​​​​*

​​

Constantine Petropoulos

19,000(i)

*

All directors and executive officers as a group (10(9 persons)

1,727,523(j)

​

8.4%

​		​​1,357,309(j)​​​​​6.7%​​

​
*
Less than 1%
​
(a)
Includes 16,375 shares which Mr. Blanchfield may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
 

3
​

(b)
Includes 19,384 shares which Ms. Groehl may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(c)
See note (e) to the table under “Stock Ownership — Principal Shareholders” for information with respect to these shares.
​
(d)
Includes 11,375 shares which Mr. Smith may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(e)
Includes 13,625 shares which Mr. Warshaw may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(f)
Consists of 31,875 shares which Mr. Esquivel may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(g)
Includes 39,000 shares which Mr. Farabaugh may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(h)
Consists of 24,500 shares which Mr. Petropoulos may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(i)
Includes 3,750 shares which Mr. Shore may acquire pursuant to options exercisable as of, or within 60 days after, June 5, 2020.
​
(j)
Consists of 1,021,175 shares beneficially owned by directors and executive officers and 336,134 shares issuable to directors and executive officers upon exercise of options that are exercisable as of June 5, 2020 or will become exercisable within 60 days thereafter.
​

4
​

*

Less than 1%

(a)

Includes 17,250 shares which Mr. Blanchfield may acquire pursuant to options.

(b)

Includes 17,759 shares which Ms. Groehl may acquire pursuant to options.

(c)

See note (e) to the table under “Stock Ownership – Principal Shareholders” for information with respect to these shares.

(d)

Includes 7,875 shares which Mr. Smith may acquire pursuant to options.

(e)

Includes 15,000 shares which Mr. Warshaw may acquire pursuant to options.

(f)

Includes 42,500 shares which Mr. Farabaugh may acquire pursuant to options.

(g)

Consists of 24,375 shares which Mr. Esquivel may acquire pursuant to options.

(h)

Includes 46,500 shares which Mr. Gilhuley may acquire pursuant to options.

(i)

Consists of 19,000 shares which Mr. Petropoulos may acquire pursuant to options.

(j)

Consists of 1,341,014 shares beneficially owned by directors and executive officers and 386,509 shares issuable to directors and executive officers upon exercise of options that are exercisable as of June 7, 2019 or will become exercisable within 60 days thereafter.

PROPOSAL NO. 1 -— ELECTION OF DIRECTORS

The Board to be elected at the Meeting consists of five members. Proxies will be voted in accordance with their terms and, in the absence of contrary instructions, for the election as directors of the nominees whose names appear in the following table, to serve for the ensuing yeara one-year term and until their successors are elected and qualified.qualified, or until such director’s earlier resignation, retirement or other termination of service. Each nominee has consented to be named in this Proxy Statement and has agreed to serve as a director if elected by the shareholders. If any of the nominees does not remain a candidate at the time of the Meeting (a situation which is not now anticipated), proxies solicited hereunder will be voted in favor of those nominees who do remain as candidates and may be voted for substituted nominees. Each of the five nominees who receives a majority of the votes cast online at the Meeting in person or by proxy shall be elected, and abstentions and broker non-votes will have no effect on the outcome of the vote.

The Board recommends that shareholders vote “FOR” each of the five nominees as a director of the Company.


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Each of the nominees is presently a member of the Board.

Name

Positions with the Company

Age

Director
Since

Dale Blanchfield

Director

81

2004

Emily J. Groehl

Director

72

2010

Brian E. Shore

Director, Chairman of the Board and Chief Executive Officer

67

1983

Carl W. Smith

Director

71

2015

Steven T. Warshaw

Director

70

2004

Name​​Positions with the Company​​Age​​
Director
Since
​
Dale Blanchfield​​Director​​82​​2004​
Emily J. Groehl​​Director​​73​​2010​
Brian E. Shore​​Director, Chairman of the Board and Chief Executive Officer​​68​​1983​
Carl W. Smith​​Director​​72​​2015​
Steven T. Warshaw​​Director​​71​​2004​
Nominees’ Principal Occupations, Business Experience, Qualifications and Directorships

Dale E. Blanchfieldhas been a director of the Company since 2004 and has been the Company’s Lead Independent Director since October 2012. See “Board Leadership Structure –— Lead Independent Director” elsewhere in this Proxy Statement. Mr. Blanchfield worked in leadership positions in the U.S. printed circuit board industry continuously from 1958 until his retirement in 2003. From 1990 to 2003, Mr. Blanchfield was President of the Electronics Division of The Bureau of Engraving Inc., a manufacturer of specialized, high-volume, high layer count printed circuit boards, located in Minneapolis, Minnesota. During his career, Mr. Blanchfield has traveled extensively internationally and established a number of manufacturing partnerships, on behalf of The Bureau of Engraving, with companies in Singapore, Taiwan and China. Mr. Blanchfield was a director of The Bureau of Engraving Inc. from 2003 to December 2009. Mr. Blanchfield’s extensive manufacturing experience allows him to provide the Board and the Company with insight into the Company’s international activities, as well as its relationships with strategic customers and suppliers.

Emily J. Groehl has been a director of the Company since May 2010. Ms. Groehl retired as Senior Vice President, Sales and Marketing of the Company in June 2005 after 20 years of service to the Company. Ms. Groehl served as Senior Vice President, Sales and Marketing of the Company from May 1999 until her retirement. From June 1985, when Ms. Groehl joined the Company, until May 1999, she held a number of positions of increasing responsibility within the Company. Prior to joining the Company, Ms. Groehl had been National Sales Manager of Polyclad Laminates, Inc. from 1980 to 1985, after beginning her career in the electronics materials industry in 1969 with Atlantic Laminates, and continuing with Oak Industries, which acquired Atlantic Laminates, until 1980.Ms.1980. Ms. Groehl’s background with the Company and extensive experience enable her to provide the Board and the Company with valuable perspectives on the Company’s operations, culture and corporate planning and budgeting and on its marketing and sales efforts and programs.

Brian E. Shorehas been a director of the Company since 1983, Chief Executive Officer since 1996 and Chairman of the Board since July 2004. He was also President of the Company from 1996 until July 28, 2014. Mr. Shore has been an employee of the Company since 1988. As the Company’s Chief Executive Officer, Mr. Shore brings to the Board significant senior leadership and financial, business and industry experience. As Chief Executive Officer, Mr. Shore has direct responsibility for the Company’s strategy and operations.

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​

Mr. Shore has significant executive experience with the strategic, financial, and operational requirements of the Company and extensive and intimate knowledge of the Company and its operations, personnel and financial resources.

Mr. Shore brings tremendous knowledge of the Company and the global aerospace industry to the Board. In addition, he brings his broad strategic vision for the Company to the Board. Mr. Shore’s service as the Chairman of the Board and the Chief Executive Officer of the Company creates a critical link between management and the Board, enabling the Board to perform its oversight function with


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the benefits of management’s perspectives on the Company’s business. In addition, having the Chief Executive Officer, and Mr. Shore in particular, on the Board provides the Company with decisive and effective leadership.

Carl W. Smithhas been a director of the Company since July 2015. Mr. Smith has many years of manufacturing and management experience in the aerospace composite materials industry. From 2000 to 2006, Mr. Smith was associated with Reinhold Industries, Inc., a manufacturer of structural and other components for the aircraft and aerospace industries, including composite seats, where, from 2004 to 2007, he was Assistant to the Chief Executive Officer, working primarily on aircraft composite seat manufacturing and Federal Aviation Administration certification of laminate manufacturing and testing; and from 2000 to 2004, he was Chief Executive Officer of Samuel Bingham Enterprises, Inc., a subsidiary of Reinhold Industries and a manufacturer of rubber and urethane rolls to the graphic arts and industrial markets. From 1983 to 1998, he held various management and technical positions with Fiberite, Inc., the predecessor of Cytec Fiberite Inc., a subsidiary of Cytec Industries, Inc. and both manufacturers of advanced composite materials for the aerospace, commercial and recreational markets. He was President and Chief Operating Officer of Fiberite, Inc. from 1995 to 1997, when it was acquired by Cytec Industries, and he was Vice President of Operations of Cytec Fiberite, Inc. from 1997 to 1998. In 1994 and 1995, he was President of ICI Composites, Inc., the predecessor of Fiberite, Inc. and a subsidiary of Imperial Chemical Industries; and from 1983 to 1994, he held various management and technical positions with ICI and Fiberite. From 1976 to 1983, he held various technical positions with Martin Marietta Corporation, General Dynamics Convair and Composite Optics, Inc. Mr. Smith provided consulting services to the Company from 2009 to 2012, primarily for the Company’s aerospace composite materials, structures and assemblies business unit in Newton, Kansas; and in 2006 and 2007 he served as Vice President of Advanced Composite Operations of the Company. He first joined the Company in April 1998 as Vice President of Operations of the Company and Chief Operating Officer of Nelco International Corporation, a wholly-owned subsidiary of the Company, and was elected Senior Vice President of North American Operations of the Company in May 1999, a position which he held until March 2000. Mr. Smith’s twenty years of broad and extensive background and experience in the aerospace advanced composite materials industry, and in the manufacturing operations of aerospace composite materials manufacturers, enable him to provide the Board and the Company with insight into the aerospace advanced composite materials industry.

Steven T. Warshawhas been a director of the Company since 2004. Mr. Warshaw was Chairman of the Board, President and Chief Executive Officer of M Cubed Technologies, Inc., a manufacturer of ceramic materials for semiconductor equipment and armor applications, in Monroe, Connecticut from July 2002 to October 2005 and President, Hexcel Schwebel Division, Hexcel Corporation, a supplier of specialized fabrics for reinforcement of laminates used in printed circuit boards and in commercial aerospace, recreation and other industrial applications, in Anderson, South Carolina, from April 2000 to November 2001. Hexcel Schwebel was and is a supplier of raw materials to the Company. Prior to 2000, Mr. Warshaw was Senior Vice President, World Wide Sales and Marketing, of Photronics, Inc., a manufacturer of photomasks used to transfer circuit patterns onto semi-conductor wafers, in Brookfield, Connecticut, from February 1999 to April 2000 and President, Olin Microelectronic Materials, a supplier of advanced chemicals and related products, in Norwalk, Connecticut, from January 1996 to January 1999. Prior to 1996, Mr. Warshaw worked in numerous financial and management leadership positions with Olin Corporation (including Vice President, Strategic Development and Finance of Olin Chemicals Group, Vice President and General Manager of Olin Performance Urethanes, and President of Olin CIBA-Geigy (OCG) Microelectronic Materials). The Board has determined thatMr.that Mr. Warshaw is an “audit committee financial expert” as defined in the rules of the Securities and Exchange Commission. Mr. Warshaw has been a director of NN, Inc. from 1997 to the present, and he is chair of the compensation committee of the board of directors and a member of the audit committee of the board of directors of NN, Inc. Mr. Warshaw has extensive experience with corporate management, financial


6

and accounting matters, evaluating financial results and overseeing


6
​

the financial reporting process of a publicly owned corporation. In addition, his experience with Hexcel Corporation enables him to provide the Board and the Company with insight into the aerospace industry.

There are no family relationships among any of the nominees named above or among any of such nominees and any of the other executive officers of the Company, except Benjamin W. Shore, the Company’s Senior Vice President –— Sales, Marketing and Business Development, is the nephew of Brian E. Shore.

The Company was not during the 20192020 fiscal year, and is not, engaged in any transaction with Dale Blanchfield, Emily J. Groehl, Carl W. Smith or Steven T. Warshaw, except Ms. Groehl provided consulting services to the Company for which the Company paid consulting fees to Ms. Groehl, as described below under “Director Independence”.

Warshaw.

Director Independence

The Board believes that at least a majority of the directors on the Board should be independent. The Board recently undertook its annual review of director independence in accordance with the applicable rules of the New York Stock Exchange. The independence rules include a series of objective tests, including that the director is not employed by the Company and has not engaged in various types of business dealings with the Company. In addition, the Board is required to make a subjective determination that no relationship exists which, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The Board has determined that the following current directors and/or nominees have no material relationships with the Company and are “independent” as required by and as defined in the director independence standards of the New York Stock Exchange: Dale Blanchfield, Emily J. Groehl, Carl W. Smith and Steven T. Warshaw. In determining that Ms. Groehl is “independent”, the Board considered the fact that she provided consulting services to the Company during the Company’s fiscal yearsyear ended March 3, 2019 and February 25, 2018 for which the Company paid consulting fees to Ms. Groehl in the amountsamount of $4,245 and $6,773, respectively.but no services during the 2020 fiscal year. Brian E. Shore does not satisfy such independence standards because he is an employee of the Company.

Board Committees

The Company’s Audit Committee currently consists of Dale Blanchfield, Carl W. Smith and Steven T. Warshaw, with Mr. Warshaw as Chair of such Committee. The Board of Directors has determined that Mr. Warshaw is an “audit committee financial expert” as defined in rules of the Securities and Exchange Commission and that each of Messrs. Blanchfield, Smith and Warshaw is “independent” as required by and as defined in the audit committee independence standards of the Securities and Exchange Commission and of the New York Stock Exchange and has sufficient knowledge in reading and understanding financial statements to serve on the Audit Committee. The designation as an “audit committee financial expert” does not impose on such person any duties, responsibilities, obligations or liabilities that are greater than those which are generally imposed on each member of the Audit Committee and the Board, and such designation does not affect the duties, responsibilities, obligations or liabilities of any other member of the Committee or the Board. The duties and responsibilities of the Audit Committee are set forth in a written charter of such Committee and are described elsewhere in this Proxy Statement under the caption “Other Matters –— Audit Committee Report”. The Audit Committee also issues the Audit Committee Report required to be included in the Company’s Proxy Statement by rules of the Securities and Exchange Commission. The Audit Committee Report for the Company’s 20192020 fiscal year is set forth elsewhere in this Proxy Statement under the caption “Other Matters –— Audit Committee Report”.


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The Company has a Compensation Committee and a Stock Option Committee each currently consisting of Dale Blanchfield, Carl W. Smith and Steven T. Warshaw. Mr. Blanchfield is Chair of the Compensation Committee, and Mr. Smith is Chair of the Stock Option Committee. Each member of the Compensation and Stock Option Committees is “independent” as required by and as defined in the compensation committee independence standards of the New York Stock Exchange. The functions of the Compensation and Stock Option Committees are set forth in written charters of such Committees adopted by the Board, and such functions are described elsewhere in this Proxy Statement under the caption “Executive Officer Compensation –— Compensation Discussion and Analysis –— Board Process”.

The Company has a Nominating Committee currently consisting of Dale Blanchfield, Carl W. Smith and Steven T. Warshaw, with Mr. Blanchfield as Chair of such Committee. The functions of the Nominating Committee, which are to identify and recommend to the Board of Directors individuals qualified to serve

7
​

as directors of the Company and on committees of the Board and to oversee the evaluation of the Board and the Company’s management, are set forth in a written charter of such Committee adopted by the Board. The Nominating Committee recommended to the Board, and the Board nominated, Dale Blanchfield, Emily J. Groehl, Brian E. Shore, Carl W. Smith and Steven T. Warshaw as nominees for election as directors at the Meeting.

The Company has a Corporate Governance Committee currently consisting of Dale Blanchfield, Carl W. Smith and Steven T. Warshaw, with Mr. Warshaw as Chair of such Committee. The functions of the Corporate Governance Committee, which are to advise the Board of Directors with respect to Board composition, procedures and committees and to develop and recommend to the Board proposed changes to the Company’s corporate governance principles, are set forth in a written charter of such Committee adopted by the Board.

Each member of the Compensation, Stock Option, Nominating and Corporate Governance Committees is “independent” as required by and as defined in the director independence standards of the New York Stock Exchange.

The charters of the Audit, Compensation, Stock Option, Nominating and Corporate Governance Committees are available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders -— Charters and Codes” as required by rules of the New York Stock Exchange. In addition, the charters of such Committees are available in print to any shareholder upon request submitted to the Corporate SecretaryGeneral Counsel at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 11747.

11590.

During the Company’s last fiscal year, the Board met six times and authorized action by unanimous written consent on nine occasions, the Audit Committee met seven times, the Nominating Committee met once, the Corporate Governance Committee met once, the Compensation Committee met once, the Stock Option Committee met once and authorized action by unanimous written consent on one occasion, and the independent directors met in executive session without management three times.one time. At each meeting of the independent directors, the Lead Independent Director presides. The functions of the Lead Independent Director are described elsewhere in this Proxy Statement under the caption “Board Leadership Structure”. Each of the directors attended more than 75% of all of the meetings held by the Board and each committee thereof of which such director was a member during the Company’s last fiscal year.

The Board’s Role in Risk Oversight

One of the Board’s functions is oversight of risk management. “Risk” is inherent in business, and the Board seeks to understand and advise on risk in conjunction with the activities of the Board and the Board’s committees. Management of the Company is responsible for identifying risk and risk controls related to significant business activities; mapping the risks to Company strategy; and developing programs and recommendations to determine the sufficiency of risk identification, the balance of potential risk to potential reward, and the appropriate manner in which to control risk. The Board implements its risk oversight responsibilities by having management provide periodic briefings on the significant voluntary and involuntary risks that the Company faces and how the Company is seeking to


8

manage risk. In some cases, as with risks of new technology and risks related to product acceptance, risk oversight is addressed as part of the Board’s oversight of business and strategic developments. In other cases, a Board committee is responsible for oversight of specific risk topics. The Audit Committee oversees issues related to internal control over financial reporting, the Compensation Committee reviews risks that may be implicated by the Company’s compensation programs, as discussed below, and the Corporate Governance Committee oversees risks related to governance policies and practices. The Board and Board committees generally discuss relevant risks and risk control; and the Board members assess and oversee the risks as a part of their review of the related business, financial, or other activities of the Company. In addition, the Board receives presentations during the year from management regarding specific potential risks and trends as necessary. At each Board meeting, the Chief Executive Officer addresses matters of particular importance or concern, including any significant areas of risk requiring Board attention. The Board believes that the practices described above, and the current leadership structure, facilitate effective Board oversight of the Company’s significant risks.


8
​

Risk Assessment in Compensation Programs

The Board has assessed the Company’s compensation programs and has concluded that the Company’s compensation policies and practices do not create risks that are reasonably likely to have a material adverse effect on the Company.

Board Leadership Structure

Chairman of the Board.Brian E. Shore has served as the Company’s Chairman of the Board and Chief Executive Officer since 2004. The Board believes that having a combined Chairman of the Board and Chief Executive Officer and independent members of the Board, with a lead independent director, provides the best board leadership structure for the Company. This structure, together with the Company’s other corporate governance practices, provides independent oversight of management while ensuring clear strategic alignment throughout the Company. Specifically, Mr. Shore proposes strategic priorities to the Board, communicates its guidance to management, and is ultimately responsible for implementing the Company’s key strategic initiatives. The Board has determined that this leadership structure is optimal for the Company because it provides the Company with strong and consistent leadership. Given the current regulatory and market environments, the Board believes that having one leader serving as both the Chairman of the Board and Chief Executive Officer provides decisive and effective leadership.

Lead Independent Director.Dale Blanchfield has served as the Company’s Lead Independent Director since October 2012.Pursuant to the Company’s Corporate Governance Guidelines, as amended, the independent directors of the Board will annually elect by majority vote a Lead Independent Director, who may be removed or replaced at any time with or without cause by a majority of the independent directors. The Lead Independent Director has the authority to call meetings of the non-management directors or the independent directors; develops agendas for meetings of the non-management directors or independent directors in consultation with the Chairman and Chief Executive Officer; presides at all meetings of the non-management directors or independent directors; provides input on the agenda for meetings of the Board; leads the independent directors in the annual evaluation of the performance of the Chief Executive Officer and communicates that evaluation to the Chief Executive Officer; consults with the Chairman on other matters that are pertinent to the Board and the Company; and has such other powers and responsibilities as requested by the Board.

Annual Meeting Attendance

It is the Company’s policy that all directors are invited to and encouraged to attend Annual Meetings of Shareholders, and all the members of the Board of Directors attended the Annual Meeting of Shareholders held on July 24, 2018.


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16, 2019.

Director Compensation

Each director who is not an employee of the Company or any of its subsidiaries receives a fee of $22,000 per annum for services as a director; the Lead Independent Director receives a fee of $7,000 per annum for services as such Director; each member of the Audit Committee, other than the Chairman of the Committee, receives a fee of $2,000 per annum for services as a member of the Committee, and the Chairman of the Audit Committee receives a fee of $4,000 per annum for services as Chairman of the Committee; each member of the Compensation Committee receives a fee of $2,000 per annum for services as a member of such Committee; and each Director and each Committee member is reimbursed for travel expenses incurred in attending meetings of the Board and of Committees of the Board.

As previously reported by the Company, each of the aforementioned non-employee directors voluntarily reduced the director’s annual fee by $10,000 for the Company’s 2019 fiscal year, February 26, 2018 to March 3, 2019, and the Chairman of the Board and Chief Executive Officer, Brian E. Shore, voluntarily reduced his annual salary from $357,760 to $250,000 for the 2019 fiscal year, not as cost reduction measures but as indications and symbols of their unified and enthusiastic commitment to, and support of, the Company’s strategic evaluation of its electronics business and the other matters announced by the Company in its news release on January 4, 2018. Each non-employee director’s annual fee was restored to $22,000 for the 2020 fiscal year.


9
​

The following table shows all the compensation paid by the Company for the most recent fiscal year, February 26, 2018March 4, 2019 to March 3, 20191, 2020 for each of the directors of the Company, other than Brian E. Shore. Mr. Shore did not receive any compensation in his capacity as a director. Mr. Shore’s compensation is set forth elsewhere in this Proxy Statement under the caption “Executive Officer Compensation — Summary Compensation Table”.

Name

 

Fees Earned
or Paid
in Cash

  

Option
Awards(a)

  

Total

 

Dale Blanchfield

 $23,000  $14,105  $37,105 

Emily J. Groehl

 $12,000  $14,105  $26,105 

Carl W. Smith

 $16,000  $14,105  $30,105 

Steven T. Warshaw

 $18,000  $14,105  $32,105 

Name​​
Fees Earned or
Paid in Cash
($)
​​
Option
Awards
($)(a)
​​
Total
($)
​
Dale Blanchfield​​​$33,000​​​​$7,665​​​​$40,665​​
Emily J. Groehl​​​$22,000​​​​$7,665​​​​$29,665​​
Carl W. Smith​​​$26,000​​​​$7,665​​​​$33,665​​
Steven T. Warshaw​​​$28,000​​​​$7,665​​​​$35,665​​
​

(a)

The amounts in this column are the grant date fair values of stock options granted to each of the named directors during or for the 2019 fiscal year, estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 2.26%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of grant; expected volatility of 30.4%, based on historical volatility of the Company’s common stock; expected dividend yield of 2.43%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 5.8 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the exercise price of $16.44 of the option granted. These amounts do not correspond to the actual value that will be realized by the named directors if and when they exercise the options. At March 3, 2019, the end of the Company’s last fiscal year, Mr. Blanchfield held outstanding stock options for 22,000 shares of Common Stock, Ms. Groehl held outstanding stock options for 22,009 shares of Common Stock, Mr. Smith held outstanding stock options for 14,000 shares of Common Stock, and Mr. Warshaw held outstanding stock options for 19,250 shares of Common Stock.

(a)
The amounts in this column are the grant date fair values of stock options granted to each of the named directors during or for the 2020 fiscal year, estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 0.42%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of grant; expected volatility of 27.2%, based on historical volatility of the Company’s common stock; expected dividend yield of 3.18%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 7.6 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the exercise price of $12.58 of the option granted. These amounts do not correspond to the actual value that will be realized by the directors if and when they exercise the options. At March 1, 2020, the end of the Company’s last fiscal year, Mr. Blanchfield held outstanding stock options for 22,500 shares of Common Stock, Ms. Groehl held outstanding stock options for 25,509 shares of Common Stock, Mr. Smith held outstanding stock options for 17,500 shares of Common Stock, and Mr. Warshaw held outstanding stock options for 19,750 shares of Common Stock.
​
Director Stock Ownership Guideline

During the Company’s 2013 fiscal year, the Board resolved that after a reasonable period of time each director should own approximately 1,000 or more shares of Common Stock. All of the directors satisfy such guideline.


10


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NAMED EXECUTIVE OFFICER COMPENSATION

Compensation Discussion and Analysis

General.The Company’s compensation of its named executive officers is composed of annual base salary, annual discretionary cash bonus, annual stock option grant, the profit sharing portion of the Company’s Employees’ Profit Sharing and 401(k) Retirement Savings Plan (the “Profit Sharing Plan”) and modest perquisites. The Company does not have employment agreements or employment termination or severance agreements or change-of-control agreements with any of its executive officers or any of its other employees, other than (i) an employment agreement which the Company had with the Managing Director of the Company’s wholly owned subsidiary in Singapore prior to the sale of the Company’s electronics business in December 2018, (ii) Retention Bonus Agreements which the Company had with Christopher T. Mastrogiacomo, the former President and Chief Operating Officer of the Company prior to the sale of the Company’s electronics business, who is also one of the executive officers named in the “Summary Compensation Table” elsewhere in this Proxy Statement, and with one other former officer of the Company prior to such sale, (iii) a provision in the Company’s 2002 Stock Option Plan that in the event of a “Change in Control”, as defined in such Plan, any outstanding options will become fully exercisable and (iv) a provision in the Company’s 2018 Stock option Plan that in the event of “Change of Control”, as defined in such Plan, the Stock Option Committee may take such actions as it deems appropriate to provide for accelerated vesting of outstanding unvested options unless the successor or acquirer company assumes or substitutes the options outstanding under the Plan with successor or acquirer options equal in value to options outstanding at the time of the “Change of Control” in which case accelerated vesting will occur only upon involuntary termination of employment without “Cause”, as defined in such Plan, or voluntary termination of employment for “Good Reason”, as defined in such Plan, within one year after the “Change of Control”, all as described under “Executive Officer Compensation—Compensation — Employment, Severance and Change-in-Control Agreements” elsewhere in this Proxy Statement. The employment of the Managing Director of the Company’s subsidiary in Singapore and the employment of Mr. Mastrogiacomo and the aforementioned other former officer of the Company were transferred to the purchaser of the Company’s electronics business in December 2018. The Compensation Committee of the Board fully supports and endorses this compensation structure, which is designed to provide fair current income to the Company’s named executive officers, a discretionary cash award for individual and enterprise performance, equity participation in the Company’s long-term performance as assessed by the capital markets in which the Company’s common stock is traded and participation in the Company’s profits through discretionary awards to the Profit Sharing Plan.

The Chief Executive Officer has declined to accept the Compensation Committee’s offer of a bonus and a salary increase each year since the Company’s 2001 fiscal year, except for bonuses for the 2008 through 2014 fiscal years, which he donated in their entirety to charity. In addition, as disclosed elsewhere in this Proxy Statement and as previously reported by the Company, the Chief Executive Officer voluntarily reduced his annual salary from $357,760 to $250,000 for the 2019 fiscal year, and such reduction has continued in the 2020 fiscal year.

It is difficult for the Company to ascertain meaningful comparisons because the Company has few, if any, peer-group companies which disclose compensation information since most of its competitors are privately owned or are divisions or business units or subsidiaries of larger publicly owned companies which do not disclose compensation information about the officers of the divisions, business units or subsidiaries of the companies that would serve as a basis for comparison. The Company’s compensation of its senior management is also intended to align management’s incentives with the long-term interests of the Company’s shareholders and to be fair and equitable to the individual and to the Company’s employees and shareholders.

The Compensation and Stock Option Committees determine specific amounts of salary increases, if any, bonuses, if any, and stock option awards, if any, based generally on the Chief Executive Officer’s and the Committees’ subjective view of the Company’s results of operations, the overall performance of


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each individual, any changes in functional responsibility, promotions, the significance of the individual’s position to the Company, the individual’s experience and expertise, information gathered informally as to compensation levels of comparable companies in the same geographic location as the Company and the Company’s overall results of operations.

The Compensation Committee does not consider specific items of corporate or individual performance, other than the Company’s overall results of operations, in setting compensation policies and making compensation decisions. Consequently, specific forms of compensation are not structured and implemented to reflect any specific performance items. In addition, there are no target levels with respect to certain performance-related factors, and the Committee does not utilize or consider any pre-determined or other objective criteria.

The Company and the Compensation Committee informally gather information as to compensation levels of comparable companies in the same geographic location as the Company, but the Company does not engage in benchmarking total compensation or any element of compensation. The Company’s conduct in informally gathering information consists primarily of the Committee members’ and the Chief Executive Officer’s receipt of anecdotal information, proxy statements of other companies, which they receive

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because of their personal investments or otherwise, and information in newspapers, magazines and other publications. The Committee and the Chief Executive Officer consider this information in an informal way to assist them in understanding the state of the market for executive talent generally and in their deliberations and efforts to provide fair and equitable compensation to the Company’s executive officers and other employees.

The amounts of compensation awarded for each element of the Company’s compensation program (i.e., salary increases, bonuses and stock options) are subjective and not based on any formula or any pre-determined or other objective criteria. The Compensation Committee’s subjective assessments of the Company’s overall results of operations include the Company’s gross operating margins, operating income, net income and net income.earnings before interest, taxes, depreciation and amortization. The Committee’s assessment of an executive’s overall performance may include such performance factors as leadership qualities, intensity of efforts, cost containment efforts and the success of product promotions. These qualitative inputs are not translated into objective pay determinations for the amounts of salary increases, bonuses or stock option grants.

Base Salaries.   Salaries of executive officers are determined based on the significance of the position to the Company, individual experience and expertise, individual performance and information gathered informally as to compensation levels of comparable companies in the same geographic location as the Company, except the salary of the Chief Executive Officer, who has declined to accept the Compensation Committee’s offer of a salary increase each year since the Company’s 2001 fiscal year.year and has voluntarily reduced his salary for the 2021 fiscal year, as described below. The Compensation Committee reviews the salary of each executive officer annually and makes adjustments as appropriate, taking into account the recommendations of the Chief Executive Officer.

The Compensation Committee generally provides annual increases in base salaries to compensate for general inflation and cost-of-living increases and occasional, special increases as a result of changes in functional responsibility, promotions, extraordinary efforts, or special accomplishments and the other factors described elsewhere in this “Compensation Discussion and Analysis”. However, no salary increases were provided to the named executive officers in the 2018 or 2019 fiscal years, except for increases for Mark A. Esquivel who is a named executive officer in this Proxy Statement and one other executive officer,Benjamin W. Shore in connection with their respective promotions.

As disclosed elsewhere in this Proxy Statement and as previously reported by the Company, the Chairman of the Board and Chief Executive Officer, Brian E. Shore, voluntarily reduced his annual salary from $250,000 to $220,000 for the 2021 fiscal year, after voluntarily reducing his annual salary from $357,760 to $250,000 for the 2019 fiscal year February 26, 2018 to March 3, 2019, and each of the other directors of the Company voluntarily reduced the director’s annual fee by $10,000 for the Company’s 2019 fiscal year, not as costhe continued this voluntary salary reduction measures but as indications and symbols of their unified and enthusiastic commitment


12

to, and support of, the Company’s strategic evaluation of its electronics business and the other matters announced by the Company in its news release on January 4, 2018. Each non-employee director’s annual fee was restored to $22,000 for the 2020 fiscal year, but the Chief Executive Officer’s voluntary salary reduction has continuedyear. As stated in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 10, 2020, Mr. Shore’s voluntary reduction of his annual salary in the 2021 fiscal year.

year was intended to pay for the portion of the increase, in such fiscal year, to the cost of the Company’s medical insurance plan which otherwise would need to be paid for by the Company’s employees through increases to their weekly medical insurance plan contributions. Mr. Shore did not want the Company’s employees to pay more for their medical insurance coverage.

Discretionary Annual Bonuses.   Decisions as to the award of cash bonuses to executive officers with respect to each fiscal year are made after the close of the fiscal year. The amount awarded to each executive officer is based on the Company’s overall performance, individual performance, base salary level, bonuses paid in prior years and overall equity and fairness, except the Chief Executive Officer, who has declined to accept the Compensation Committee’s offer of a bonus each year since the Company’s 2001 fiscal year, except for bonuses for the 2008 through 2014 fiscal years, which he donated in their entirety to charity.

The amounts of bonuses for other named executive officers are based on the Chief Executive Officer’s subjective assessments of the individual’s overall performance and the other factors described elsewhere in this “Compensation Discussion and Analysis” and his recommendations to the Compensation Committee, which the Committee then reviews with the Chief Executive Officer and approves as appropriate. In addition to annual discretionary bonuses for the 2019 fiscal year, special bonuses were awarded to four of the executive officers named in the “Summary Compensation Table” elsewhere in this Proxy Statement for their roles in the Company’s sale of its electronics business in December 2018. The Chief Executive Officer declined to accept a bonus in connection with such sale.


12
​

Equity Compensation.   The only form of equity compensation that the Company has awarded consists of incentive stock options and non-qualified stock options under the Company’s stock option plans.

The Stock Option Committee determines the number of options that it considers appropriate for each executive officer and other key employees of the Company. With the exception of significant promotions and significant new hires, the Stock Option Committee generally grants stock options under the Company’s plan once each year following the availability to the Stock Option Committee of the financial results of operations of the Company and its subsidiaries for the prior fiscal year, the business plans of the Company’s subsidiariesCompany for the current fiscal year the option grant recommendations of the presidents of the Company’s subsidiaries and the evaluation of such recommendations by the senior management of the Company and the recommendations of the Chief Executive Officer of the Company. The Stock Option Committee provides annual stock option grants based generally on the individual’s position in the Company, the individual’s salary level, the amounts of grants in the past and the total amount expected to be expensed by the Company in the fiscal year for stock option grants and, onfor named executive officers other than the Chief Executive Officer, the Chief Executive Officer’s subjective view of the individual’s overall performance, and the other factors described elsewhere in this “Compensation Discussion and Analysis” and his recommendations to the Committee, which the Committee then reviews with the Chief Executive Officer. In granting stock options, the Stock Option Committee generally does not consider the equity ownership levels of the recipients. The Stock Option Committee did not grant any stock options for the 2017 or 2018 fiscal yearsyear to the named executive officers or to any other employees except one option for 1,250 shares to a new employee in the 2017 fiscal year.employees. The Stock Option Committee has the sole authority to grant stock options and has not delegated any authority to grant stock options.

The Company has not had, and does not have, a program, plan or practice to select the dates of grants of stock options to executive officers or to any employee or director of the Company in coordination with the release of material non-public information. The Company does not plan to time, and it has not previously timed, its release of material non-public information for the purpose of affecting the value of executive compensation. In addition, the Company does not have a program, plan or practice of granting stock options and setting the exercise price or prices of such options based on the fair market


13

value of the Company’s Common Stock on a date other than the grant date. Pursuant to the terms of the Company’s 2002 Stock Option Plan, which was approved by the shareholders of the Company at the Annual Meeting of Shareholders held on July 17, 2002 and which terminated on May 21, 2018, and the 2018 Stock Option Plan, which was approved by the shareholders of the Company at the Annual Meeting of Shareholders held on July 24, 2018, the purchase price of the Common Stock under each stock option granted by the Company is no less than the fair market value of the Common Stock at the time of grant, which, pursuant to the terms of such Plans, is the reported closing price of the Common Stock on the New York Stock Exchange on the date preceding the date the option is granted.

Severance Benefits.   The Company does not have a policy to provide specified severance benefits to employees whose employment is terminated by the Company and does not providehave employment, termination or severance agreements or change-in-control agreements forin place with any of its employees,named executive officers, except for (i) an employment agreement which the Company had with the Managing Director of the Company’s wholly owned subsidiary in Singapore prior to the sale of the Company’s electronics business in December 2018, (ii) Retention Bonus Agreements which the Company had with Christopher T. Mastrogiacomo, the former President and Chief Operating Officer of the Company prior to the sale of the Company’s electronics business, who is also one of the named executive officers included in the “Summary Compensation Table” elsewhere in this Proxy Statement, and with one other former officer of the Company prior to such sale, (iii) a provision in the Company’s 2002 Stock Option Plan that in the event of a “Change in Control”, as defined in such Plan, any outstanding options will become fully exercisable, and (iv) a provision in the Company’s 2018 Stock Option Plan that in the event of “Change of Control”, as defined in such Plan, the Stock Option Committee may take such actions as it deems appropriate to provide for accelerated vesting of outstanding unvested options unless the successor or acquirer company assumes or substitutes the options outstanding under the Plan with successor or acquirer options equal in value to options outstanding at the time of the “Change of Control” in which case accelerated vesting will occur only upon involuntary termination of employment without “Cause”, as defined in such Plan, or voluntary termination of employment for “Good Reason”, as defined in such Plan, within one year after the “Change of Control”, all as described under “Employment, Severance and Change-in-Control Agreements” elsewhere in this Proxy Statement. The employment of the Managing Director of the Company’s subsidiary in Singapore and the employment of Mr. Mastrogiacomothe former President and former Chief Operating Officer of the Company and the aforementioned other former officer of the Company were transferred to the purchaser of the Company’s electronics business in December 2018.


13
​

Pension Benefits.   The Board decides annually the amount of the Company’s contribution to the Profit Sharing Plan, which is described elsewhere in this Proxy Statement under the caption “Summary Compensation Table”. The amount of such contribution is discretionary, but may not exceed 25% of the total remuneration paid to eligible employees or such other amount as is allowed under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to this limit, the Board determines the amount to be contributed for each year based on the Company’s overall performance, the amounts contributed in prior years, the amounts of prior contributions recently forfeited by eligible employees due to termination of employment prior to vesting and recommendations from the Company’s Chief Executive Officer. The Board determined that no profit sharing contributions would be made for the executive officers or other employees of the Company for the 2017 or 2018 fiscal years,year, although contributions were made for the employees of one business unit of the Company for the 2017 and 2018 fiscal years.year. The Summary Compensation Table sets forth the profit sharing contributions made for the benefit named executive officers for the 2019 fiscal year. The percentages of compensation to be contributed to the Profit Sharing Plan for the 20192020 fiscal year have not yet been determined.

When the Company calculates overall compensation for its senior management, it considers the benefits expected to be received under the Profit Sharing Plan.


14

Perquisites and Other Benefits.   The only perquisites for senior managers are the provision of automobiles leased or owned by the Company to certain executive officers and other members of management.

Senior management also participates in the Company’s other employee benefit plans on the same terms as other employees. These plans include medical and dental insurance and life insurance.

Board Process.   The Compensation Committee of the Board approves all salary and bonus compensation and the Stock Option Committee of the Board approves all grants of stock options for executive officers. Executive officers include the Chief Executive Officer, the Chief Financial Officer and the other executive officers named in the “Summary Compensation Table” elsewhere in this Proxy Statement and the Senior Vice President – Sales, Marketing and Business Development of the Company.Statement. The Compensation Committee and the Stock Option Committee review the performance and compensation of the Chief Executive Officer and, following discussions with him, establish his compensation level. As he has in the past since the Company’s 2001 fiscal year, the Chief Executive Officer declined to accept the Compensation Committee’s offer of a salary increase and, as disclosed elsewhere in this Proxy Statement and as previously reported by the Company, the Chief Executive Officer voluntarily reduced his annual salary from $250,000 to $220,000 for the 2021 fiscal year, after voluntarily reducing his annual salary from $357,760 to $250,000 for the 2019 fiscal year, February 26, 2018 to March 3, 2019, whichand he continued this voluntary salary reduction has continued infor the 2020 fiscal year. For the remaining executive officers, the Chief Executive Officer makes recommendations to the Compensation Committee and to the Stock Option Committee. The amount of discretionary contributions to the Profit Sharing Plan for each fiscal year is determined by the Board taking into account the recommendations of the Chief Executive Officer.

The Board, the Compensation Committee and the Stock Option Committee, as the case may be, use no set formulas in making their determinations and may ascribe different weight to different factors for each executive officer. The weight ascribed to each factor may vary from year to year.

The actions generally taken by the Compensation and Stock Option Committees described above with respect to base salaries and equity compensation were not taken during the 2018 and 2019 fiscal years because no base salary adjustments or equity compensation awards were proposed by management or any director of the Company, except for increases for Mark A. Esquivel and Benjamin W. Shore who is aare named executive officerofficers in this Proxy Statement, and one other executive officer, in connection with their respective promotions.

Deductibility of Executive Compensation. The Board and the Compensation Committee have reviewed the impact of   Section 162(m) of the Code which limitsprohibits the deductibilitydeduction of certain otherwise deductible compensation in excess of $1 million per year paid to the Chief Executive Officer and the other executive officers named in the “Summary Compensation Table”Table for 2020, 2019 and 2018 Fiscal Years” elsewhere in this Proxy Statement. It is the Company’s policy to attempt to design its executive compensation plans and arrangements to be treated as tax deductible compensation wherever, in the judgment of the Board or the Compensation Committee, as the case may be, to do so would be consistent with the objectives of that compensation plan or arrangement. Accordingly, the Board and the Compensation Committee from time to time may consider whether changes in the Company’s compensation plans and arrangements may be appropriate to continue to fulfill the requirements for treatment as tax deductible compensation under the Code.

Nonqualified Deferred Compensation.Section 409A of the Code provides that amounts deferred under nonqualified deferred compensation arrangements will be included in an employee’s income when

14
​

vested, as well as be subject to additional taxes, penalties and interest, unless certain requirements are complied with. The Company believes that its compensation arrangements satisfy, or are exempt from, the requirements of Section 409A.


15

Shareholder Vote on Executive Compensation.   The Company has considered the results of the most recent shareholder advisory vote on executive compensation required by the Securities and Exchange Commission’s proxy rules in determining its compensation policies and decisions. In light of the high level of support the proposal to approve the compensation of the named executive officers received at the July 24, 201816, 2019 Annual Meeting and at prior Annual Meetings, the Company’s compensation policies and decisions, explained in detail in this “Compensation Discussion and Analysis”, continue to be designed to focus on pay for performance and to align the long-term interests of the Company’s executive officers with the long-term interests of the Company’s shareholders. The Company will include a shareholder vote on executive compensation in its proxy materials each year until the next required vote on the frequency of shareholder votes on executive compensation or until the Company’s Board of Directors otherwise determines that a different frequency is in the best interests of the Company and its shareholders.

Compensation Committee Report

The Compensation Committee has reviewed and discussed the foregoing Compensation Discussion and Analysis with management of the Company; and based on such review and discussion, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement.

Compensation Committee

Dale Blanchfield, Chairman

Carl W. Smith

Steven T. Warshaw

Compensation Committee
Dale Blanchfield, Chairman
Carl W. Smith
Steven T. Warshaw
Compensation Committee Interlocks and Insider Participation

All members of the Compensation Committee were independent directors during the 20192020 fiscal year, and none of them is, or has been, an employee or officer of the Company, except that Carl Smith was an employee of the Company prior to 2007 and a consultant of the Company prior to 2012. During the 20192020 fiscal year, none of the Company’s executive officers served on the compensation committee (or equivalent) or the board of directors of another entity whose executive officers served on the Board or the Compensation Committee of the Board.

Summary Compensation Table for 2020, 2019 2018 and 20172018 Fiscal Years

The following table shows all the compensation paid by the Company for the last three completed fiscal years for the Company’s Chief Executive Officer, the Company’s Chief Financial Officer, the three other most highly compensated executive officers who were serving in such capacities at the end of the Company’s last completed fiscal year, which was March 3, 2019, and Christopher T. Mastrogiacomo who resigned as President and Chief Operating Officer of the Company on December 4, 2018 and who would have been one of the three most highly compensated executive officers but for the fact that he was not serving as an executive officer of the Company at the end of the 2019 fiscal year.


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1, 2020.

Name and Principal Position Year(a) Salary  Bonus(b)  Option
Awards(c)		  All Other
Compensation(d),(e)		  Total 

Brian E. Shore
Chairman of the Board and Chief Executive Officer

 2019 $254,808  $0  $100,750  $—  $355,558 
 2018  357,760   0   0   0   357,760 
 2017  357,760   0   0   0   357,760 

P. Matthew Farabaugh
Senior Vice President and Chief Financial Officer

 2019  203,846   72,500   32,240   —   308,586 
 2018  200,000   0   0   0   200,000 
 2017  200,000   0   0   0   200,000 

Christopher T. Mastrogiacomo
President and Chief Operating Officer(f)

 2019  280,557   365,730   0   —   646,287 
 2018  365,730   0   0   0   365,730 
 2017  365,626   0   0   0   365,626 

Mark A. Esquivel
Executive Vice President and Chief Operating Officer(g)

 2019  194,970   90,000   60,450   —   345,420 
 2018  177,265   0   0   0   177,265 
 2017  177,265   10,000   0   0   187,265 

Stephen E. Gilhuley
Executive Vice President-Administration and Secretary

 2019  237,958   72,500   0   —   310,458 
 2018  233,468   0   0   0   233,468 
 2017  233,402   0   0   0   233,402 

Constantine Petropoulos
Senior Vice President and General Counsel

 2019  313,549   85,000   40,300   —   438,849 
 2018  307,545   0   0   0   307,545 
 2017  307,457   0   0   0   307,457 

 

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​

Name and Principal Position​​
Year(a)
​​Salary​​
Bonus(b)
​​
Option
Awards(c)
​​
All Other
Compensation(d)(e)
​​Total​
Brian E. Shore
Chairman of the Board and Chief Executive Officer
​​​​2020​​​​$250,000​​​​$0​​​​$65,700​​​​$—​​​​$315,700​​
​​​2019​​​​​254,808​​​​​0​​​​​100,750​​​​​7,007​​​​​362,565​​
​​​2018​​​​​357,760​​​​​0​​​​​0​​​​​0​​​​​357,760​​
P. Matthew Farabaugh
Senior Vice President and Chief Financial Officer
​​​​2020​​​​​206,000​​​​​15,750​​​​​17,520​​​​​—​​​​​239,270​​
​​​2019​​​​​203,846​​​​​72,500​​​​​32,240​​​​​7,600​​​​​316,186​​
​​​2018​​​​​200,000​​​​​0​​​​​0​​​​​0​​​​​200,000​​
Mark A. Esquivel
Executive Vice President and Chief Operating Officer(f)
​​​​2020​​​​​220,000​​​​​31,500​​​​​54,750​​​​​—​​​​​306,250​​
​​​2019​​​​​194,970​​​​​90,000​​​​​60,450​​​​​7,844​​​​​353,264​​
​​​2018​​​​​177,265​​​​​0​​​​​0​​​​​0​​​​​177,265​​
Benjamin W. Shore
Senior Vice President for Sales, Marketing and Business Development
​​​​2020​​​​​206,000​​​​​18,000​​​​​32,850​​​​​—​​​​​256,850​​
​​​2019​​​​​185,241​​​​​85,000​​​​​60,450​​​​​7,436​​​​​338,127​​
​​​2018​​​​​69,195​​​​​0​​​​​0​​​​​0​​​​​69,195​​
Constantine Petropoulos
Senior Vice President and General Counsel
​​​​2020​​​​​316,771​​​​​13,500​​​​​17,520​​​​​—​​​​​347,791​​
​​​2019​​​​​313,549​​​​​85,000​​​​​40,300​​​​​10,958​​​​​449,717​​
​​​2018​​​​​307,545​​​​​0​​​​​0​​​​​0​​​​​307,545​​
​
The salary amount for Mr. Shore for the 2019 fiscal year is more than $250,000, not because of any increase above the $250,000 amount to which he has voluntarily reduced his annual salary, but because the 2019 fiscal year consisted of 53 weeks. Mr. Shore has declined to accept the Compensation Committee’s offer of a salary increase and a bonus each year since the Company’s 2001 fiscal year, except for the bonuses for the 2008 through 2014 fiscal years, which he donated in their entirety to charity.

As disclosed elsewhere in this Proxy Statement and as previously reported by the Company, the Chief Executive Officer voluntarily reduced his annual salary from $250,000 to $220,000 for the 2021 fiscal year, after voluntarily reducing his annual salary from $357,760 to $250,000 for the 2019 fiscal year, February 26, 2018 to March 3, 2019.and he continued this voluntary salary reduction for the 2020 fiscal year. He volunteered such reduction without any consideration of the requirement to determine and disclose the Chief Executive Officer pay ratio disclosed elsewhere in this Proxy Statement and, therefore, not in anticipation of the requirement to disclose such ratio and with no intention to affect such ratio. As statedMr. Shore’s voluntary reduction of his annual salary in the Current Report on Form 8-K filed by2021 fiscal year was intended to pay for the Company withportion of the Securities and Exchange Commission on January 10, 2018, he volunteeredincrease, in such reduction not as afiscal year, to the cost reduction measure but as an indication and symbol of his commitment to, and support of the Company’s strategic evaluationmedical insurance plan which otherwise would need to be paid for by the Company’s employees through increases to their weekly medical insurance plan contributions. Mr. Shore did not want the Company’s employees to pay more for their medical insurance coverage.
(a)
Information is provided for the Company’s fiscal years ended March 1, 2020, March 3, 2019 and February 25, 2018.
​
(b)
The amounts of bonuses for the 2020 fiscal year consist of discretionary annual bonuses. The amounts of bonuses for the 2019 fiscal year consisted of discretionary annual bonuses and special performance bonuses for the roles of Messrs. Farabaugh, Esquivel, Benjamin Shore and Petropoulos in the Company’s sale of its electronics business in December 2018, as shown below. The special performance bonuses were included in the Company’s discontinued operations. Therefore, the special performance bonuses did not impact the Company’s operating results from continuing operations in the 2019 fiscal year. Mr. Shore declined to accept the Compensation Committee’s offer of a bonus in connection with such sale.
​

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​

Named Executive Officer​​
Discretionary
Annual Bonus
​​
Special
Performance
Bonus
​​
Aggregate
Bonus
​
M. Farabaugh​​​$17,500​​​​$55,000​​​​$72,500​​
M. Esquivel​​​$35,000​​​​$55,000​​​​$90,000​​
B. Shore​​​$20,000​​​​$65,000​​​​$85,000​​
C. Petropoulos​​​$20,000​​​​$65,000​​​​$85,000​​
​
(c)
The amounts in this column are the grant date fair values of stock options granted to each of the named executive officers for or during such fiscal years, estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 0.42%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of grant; expected volatility of 27.2%, based on historical volatility of the Company’s common stock; expected dividend yield of 3.18%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 7.6 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the other matters announcedexercise price of $12.58 of the option granted. These amounts do not correspond to the actual value that will be realized by the named officers if and when they exercise the options. The Company did not grant options to any of the named executive officers for the 2018 fiscal year.
​
(d)
The Company may make contributions to the Company’s Profit Sharing Plan, which vest in accordance with a graduated scale based on years of service of the employee with the Company. Substantially all full-time employees of the Company and its subsidiaries in the United States, including the Company’s executive officers, participate in the profit sharing portion of the Profit Sharing Plan, which is intended to provide retirement benefits to such employees and which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). The amounts of profit sharing contributions, if any, by the Company and its subsidiaries to the accounts of participating employees are percentages of the eligible compensation of the participating employees up to a maximum amount of compensation for each employee established under the Code, which was $285,000 for the Company’s most recent fiscal year. The Board decides annually the amount of the Company’s profit sharing contribution, which is discretionary, but may not exceed 25% of the total remuneration paid to eligible employees or such other amount as is allowed under the Code. Subject to this limit, the Board determines the amount to be contributed for each year based on the Company’s overall performance, the amounts contributed in its news release on January 4, 2018. Such salary reduction has continuedprior years, the amounts of prior contributions recently forfeited by eligible employees due to termination of employment prior to vesting and recommendations from the Company’s Chief Executive Officer. The percentages of compensation contributed to the Plan may vary between the Company and each subsidiary, but the percentage must be the same for each participating employee of the Company or the subsidiary, as the case may be. No contributions were made for the executive officers or other employees of the Company for the 2018 fiscal year, although contributions were made for the employees of one subsidiary of the Company for the 2018 fiscal year. The amounts in this column are the contributions made for the benefit named executive officers for the 2019 fiscal year. Whether contributions will be made and, if so, the percentages of compensation to be contributed to the Plan for the 2020 fiscal year.

(a)

Information is provided for the Company’s fiscal years ended March 3, 2019, February 25, 2018 and February 26, 2017.


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year have not yet been determined.

(b)

The amounts of bonuses for the 2019 fiscal year consist of discretionary annual bonuses and special performance bonuses for the roles of Messrs. Farabaugh, Esquivel, Gilhuley and Petropoulos in the Company’s sale of its electronics business in December 2018, as shown below. The special performance bonuses were included in the Company’s discontinued operations. Therefore, the special performance bonuses did not impact the Company’s operating results from continuing operations in the 2019 fiscal year. Mr. Shore declined to accept the Compensation Committee’s offer of a bonus in connection with such sale.

Named Executive Officer

 

Discretionary
Annual Bonus

  

Special
Performance
Bonus

  

Aggregate
Bonus

 

M. Farabaugh

 $17,500  $55,000  $72,500 

M. Esquivel

 $35,000  $55,000  $90,000 

S. Gilhuley

 $17,500  $55,000  $72,500 

C. Petropoulos

 $20,000  $65,000  $85,000 

The amount of bonus for Mr. Mastrogiacomo was paid to him pursuant to a Retention Bonus Agreement, dated February 2, 2018, which provided that he would earn a one-time lump sum cash bonus of $365,730 (which was the equivalent of his current annual salary) on the date of the first transaction in which the Company consummated the sale of its electronics business to a non-affiliated third party if such sale occurred on or before April 30, 2019, and if Mr. Mastrogiacomo (i) was continuously employed by the Company from the date of the Retention Bonus Agreement through the date of such sale (the “Retention Period”), (ii) was terminated by the Company without “Cause” (as defined in the Retention Bonus Agreement) or (iii) effectuated a voluntary termination of employment for “Good Reason” (as defined in the Retention Bonus Agreement) during the Retention Period, all as described under “Executive Officer Compensation—Employment, Severance and Change-in-Control Agreements” elsewhere in this Proxy Statement. The employment of Mr. Mastrogiacomo was transferred to the purchaser of the Company’s electronics business in December 2018.

(c)

The amounts in this column are the grant date fair values of stock options granted to each of the named executive officers for or during such fiscal years, estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 2.26%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of grant; expected volatility of 30.4%, based on historical volatility of the Company’s common stock; expected dividend yield of 2.43%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 5.8 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the exercise price of $16.44 of the option granted. These amounts do not correspond to the actual value that will be realized by the named officers if and when they exercise the options. The Company did not grant options to any of the named executive officers for the 2018 or 2017 fiscal years.

(d)

The Company may make contributions to the Company’s Profit Sharing Plan, which vest in accordance with a graduated scale based on years of service of the employee with the Company.

Substantially all full-time employees of the Company and its subsidiaries in the United States, including the Company’s executive officers, participate in the profit sharing portion of the Profit Sharing Plan, which is intended to provide retirement benefits to such employees and which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). The amounts of profit sharing contributions, if any, by the Company and its subsidiaries to the accounts of participating employees are percentages of the eligible compensation of the participating employees up to a maximum amount of compensation for each employee established under the Code, which was $270,000 for the Company’s most recent fiscal year. The Board decides annually the amount of the Company’s profit sharing contribution, which is discretionary, but may not exceed 25% of the total remuneration paid to eligible employees or such other amount as is allowed under the Code. Subject to this limit, the Board determines the amount to be contributed for each year based on the Company’s overall performance, the amounts contributed in prior years, the amounts of prior contributions recently forfeited by eligible employees due to termination of employment prior to vesting and recommendations from the Company’s Chief Executive Officer. The percentages of compensation contributed to the Plan may vary between the Company and each subsidiary, but the percentage must be the same for each participating employee of the Company or the subsidiary, as the case may be. No contributions were made for the executive officers or other employees of the Company for the 2017 or 2018 fiscal years, although contributions were made for the employees of one subsidiary of the Company for the 2017 and 2018 fiscal years. Whether contributions will be made and, if so, the percentages of compensation to be contributed to the Plan for the 2019 fiscal year have not yet been determined.

(e)

The Company provides no personal benefits to its executive officers other than automobiles for certain officers, the incremental cost to the Company of which is less than $10,000 per year and is not included in the Summary Compensation Table.

(f)

Mr. Mastrogiacomo was transferred to the purchaser of the Company’s electronics business in December 2018.

(g)

Mr. Esquivel has held various positions since he joined the Company in 1994 and was appointed Vice President-Aerospace of the Company in April 2015 and was elected Senior Vice President-Aerospace of the Company in October 2017 and Senior Vice President and Chief Operating Officer of the Company on December 5, 2018. He was promoted to Executive Vice President and Chief Operating Officer on May 7, 2019.


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​

(e)

The Company provides no personal benefits to its executive officers other than automobiles for certain officers, the incremental cost to the Company of which is less than $10,000 per year and is not included in the Summary Compensation Table.
​
(f)
Mr. Esquivel has held various positions since he joined the Company in 1994 and was appointed Vice President-Aerospace of the Company in April 2015 and was elected Senior Vice President-Aerospace of the Company in October 2017 and Senior Vice President and Chief Operating Officer of the Company on December 5, 2018. He was promoted to Executive Vice President and Chief Operating Officer on May 7, 2019.
​
Grants of Plan-Based Awards for 20192020 Fiscal Year

The only plans pursuant to which the Company has granted equity awards to its executive officers or other employees were the 2002 Stock Option Plan, which terminated on May 21, 2018, and its 2018 Stock

17
​

Option Plan, which was approved by the shareholders of the Company at the Annual Meeting of Shareholders on July 24, 2018. Both the 2002 Stock Option Plan and the 2018 Stock Option Plan were approved by the Company’s shareholders and provide for the grant of stock options to directors, and key employees of the Company and consultants to the Company. Both the 2002 Stock Option Plan and the 2018 Stock Option Plan provide for the grant of both options which qualify as incentive stock options under the Code and non-qualified stock options. All options granted under both the 2002 Stock Option Plan and the 2018 Stock Option Plan have exercise prices equal to the fair market value of the underlying Common Stock of the Company on the dates of grant, which, in accordance with the terms of the Plan, is the reported closing price of the Common Stock on the New York Stock Exchange on the date preceding the date the option was granted. Options granted under the Plans become exercisable 25% one year from the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire 10 years from the date of grant. The 2002 Stock Option Plan and the 2018 Stock Option Plan are each administered by the Stock Option Committee.

The following table provides information with respect to options to purchase shares of Common Stock granted pursuant to the 2018 Stock Option Plan to the named executive officers during or for the Company’s last fiscal year. No options were granted pursuant to the 2002 Stock Option Plan during or for the Company’s last fiscal year. The table provides no information regarding non-equity incentive plan awards or equity incentive plan awards or stock awards because the Company does not haveany non-equity or equity incentive plan and does not award stock to any of its executive officers or to any of its other employees.

Name

 

Grant
Date(a)

  

All Option Awards:
Number of Securities
Underlying Options

  

Exercise or Base
Price of Option
Awards ($/Sh)(b)

  

Grant Date
Closing Market
Price(b)

  

Grant Date Fair
Value of Option
Awards(c)

 

Brian E. Shore

  May 7, 2019   25,000  $16.44  $16.16  $100,750 

P. Matthew Farabaugh

  May 7, 2019   8,000   16.44   16.16  $32,240 

Mark A. Esquivel

  May 7, 2019   15,000   16.44   16.16  $60,450 

Constantine Petropoulos

  May 7, 2019   10,000   16.44   16.16  $40,500 

Name​​
Grant Date(a)
​​
All Option Awards:
Number of Securities
Underlying Options
​​
Exercise or
Base Price of
Option Awards
$(/Sh)(b)
​​
Grant Date
Closing
Market Price(b)
​​
Grant Date
Fair Value of
Option
Awards(c)
​​
Brian E. Shore​​04/09/20​​​​30,000​​​​$12.58​​​​$13.23​​​​$65,700​​​​​
P. Matthew Farabaugh​​04/09/20​​​​8,000​​​​​12.58​​​​​13.23​​​​​17,520​​​​​
Mark A. Esquivel​​04/09/20​​​​25,000​​​​​12.58​​​​​13.23​​​​​54,750​​​
Benjamin W. Shore​​04/09/20​​​​15,000​​​​​12.58​​​​​13.23​​​​​32,850​​​
Constantine Petropoulos​​04/09/20​​​​8,000​​​​​12.58​​​​​13.23​​​​​17,520​​​​​
​

(a)

Grant date is the date on which stock options were granted to the named executive officers under the Company’s 2018 Stock Option Plan.

(b)

All options granted under the 2018 Stock Option Plan have exercise prices equal to the fair market value of the underlying Common Stock of the Company on the dates of grant, which, in accordance with the terms of such Plan, is the reported closing price of the Common Stock on the New York Stock Exchange on the date preceding the date the option is granted. The reported closing price of the Common Stock on the New York Stock Exchange on May 7, 2019, the date of grant, was $16.16.

(c)

The value for options was estimated at the dates of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 2.26%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of the grant; expected volatility of 30.4%, based on historical volatility of the Company’s common stock; expected dividend yield of 2.43%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 5.8 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the exercise price of $16.44 of the option granted. These amounts do not correspond to the actual value that will be realized by the named officers if and when they exercise the options.

(a)
19

Grant date is the date on which stock options were granted to the named executive officers under the Company’s 2018 Stock Option Plan.

​
(b)
All options granted under the 2018 Stock Option Plan have exercise prices equal to the fair market value of the underlying Common Stock of the Company on the dates of grant, which, in accordance with the terms of such Plan, is the reported closing price of the Common Stock on the New York Stock Exchange on the date preceding the date the option is granted. The reported closing price of the Common Stock on the New York Stock Exchange on April 9, 2020, the date of grant, was $13.23.
​
(c)
The value for options was estimated at the dates of grant using the Black-Scholes option-pricing model with the following assumptions: a risk-free interest rate of 0.42%, based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated term of the options at the date of the grant; expected volatility of 27.2%, based on historical volatility of the Company’s Common Stock; expected dividend yield of 3.18%, based on the regular quarterly cash dividend per share most recently declared by the Company; an estimated 7.6 year term of the options, based on evaluations of the historical and expected future employee exercise behavior; and on the exercise price of $12.58 of the option granted. These amounts do not correspond to the actual value that will be realized by the named officers if and when they exercise the options.
​
Outstanding Equity Awards at 20192020 Fiscal Year-End

The following table provides information regarding unexercised stock options held by the named executive officers as of the end of the Company’s last fiscal year. The table provides no information regarding equity incentive plan awards or stock awards because the Company does not have any equity incentive plan and does not award stock to any of its executive officers or to any of its other employees.


18
​

All stock options held by the named executive officers and by all other employees of the Company as of March 3, 20191, 2020 were granted under the Company’s 2002 Stock Option Plan, which terminated on May 21, 2018, and the 2018 Stock Option Plan. The Board adopted the 2018 Stock Option Plan and the shareholders of the Company approved the 2018 Stock Option Plan at the Annual Meeting of Shareholders on July 24, 2018. The Plans provide for the grant of stock options to directors and key employees of the Company and consultants to the Company. All options granted under such Plans have exercise prices equal to the market value of the underlying common stock of the Company on the dates of grant which, in accordance with such Plan, is the reported closing price of the Common Stock on the New York Stock Exchange on the date preceding the date the option was granted. Options granted under the Plans become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire ten years after the date of grant.


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Outstanding Equity Awards at 20192020 Fiscal Year-End

 

Option Awards

Name

Option Grant
Date

 

Number of
Securities
Underlying
Unexercised
Options
Exercisable(a)

  

Number of
Securities
Underlying
Unexercised
Options
Unexercisable(a)

  

Option
Exercise
Price(b)

  

Option
Expiration
Date(c)

 

Brian E. Shore

10/14/09

  35,000   0  $13.69   10/14/19 
 

10/05/11

  35,000   0   10.94   10/05/21 
 

10/24/12

  35,000   0   13.00   10/24/22 
 

2/26/14

  35,000   0   18.63   2/26/24 
 

3/02/15

  30,000   0   14.46   3/02/25 
 

1/12/16

  26,250   8,750   7.23   1/12/26 
 

5/7/19

  0   25,000   16.44   5/7/29 
                  

P. Matthew Farabaugh

10/14/09

  3,000   0   13.69   10/14/19 
 

10/05/11

  5,000   0   10.94   10/05/21 
 

9/04/12

  10,000   0   14.73   9/04/22 
 

2/26/14

  8,000   0   18.63   2/26/24 
 

3/02/15

  9,000   0   14.46   3/02/25 
 

1/12/16

  7,500   2,500   7.23   1/12/26 
 

5/7/19

  0   8,000   16.44   5/7/29 
                  

Mark A. Esquivel

10/5/11

  2,500   0   10.94   10/5/2021 
 

9/4/12

  2,625   0   14.73   9/4/2022 
 

2/26/14

  3,500   0   18.63   2/26/2024 
 

3/2/15

  4,500   0   14.46   3/2/2025 
 

1/12/16

  11,250   3,750   7.23   1/12/2026 
 

5/7/19

  0   15,000   16.44   5/7/29 
                  

Stephen E. Gilhuley

10/14/09

  8,000   0   13.69   10/14/19 
 

10/05/11

  3,000   0   10.94   10/05/21 
 

9/04/12

  8,000   0   14.73   9/04/22 
 

2/26/14

  11,000   0   18.63   2/26/24 
 

3/02/15

  9,000   0   14.46   3/02/25 
 

1/12/16

  7,500   2,500   7.23   1/12/26 
                  

Constantine Petropoulos

10/15/14

  10,000   0   13.91   10/15/24 
 

1/12/16

  9,000   3,000   7.23   1/12/26 
 

5/7/19

  0   10,000   16.44   5/7/29 

Name​​
Option Grant
Date
​​
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable(a)
​​
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable(a)
​​
Option
Exercise
Price
($)(b)
​​
Option
Expiration
Date(c)
​
Brian E. Shore​​​​10/05/11​​​​​35,000​​​​​0​​​​​9.94​​​​​10/05/21​​
​​​​​10/24/12​​​​​35,000​​​​​0​​​​​12.00​​​​​10/24/22​​
​​​​​02/26/14​​​​​35,000​​​​​0​​​​​17.63​​​​​02/26/24​​
​​​​​03/02/15​​​​​30,000​​​​​0​​​​​13.46​​​​​03/02/25​​
​​​​​01/12/16​​​​​35,000​​​​​0​​​​​6.23​​​​​01/12/26​​
​​​​​05/07/19​​​​​6,250​​​​​18,750​​​​​15.44​​​​​05/07/29​​
​​​​​04/09/20​​​​​0​​​​​30,000​​​​​12.58​​​​​04/09/30​​
P. Matthew Farabaugh​​​​09/04/12​​​​​10,000​​​​​0​​​​​13.73​​​​​09/04/22​​
​​​​​02/26/14​​​​​8,000​​​​​0​​​​​17.63​​​​​02/26/24​​
​​​​​03/02/15​​​​​9,000​​​​​0​​​​​13.46​​​​​03/02/25​​
​​​​​01/12/16​​​​​10,000​​​​​0​​​​​6.23​​​​​01/12/26​​
​​​​​05/07/19​​​​​2,000​​​​​6,000​​​​​15.44​​​​​05/07/29​​
​​​​​04/09/20​​​​​0​​​​​8,000​​​​​12.58​​​​​04/09/30​​
Mark A. Esquivel​​​​10/05/11​​​​​2,500​​​​​0​​​​​9.94​​​​​10/05/21​​
​​​​​09/04/12​​​​​2,625​​​​​0​​​​​13.73​​​​​09/04/22​​
​​​​​02/26/14​​​​​3,500​​​​​0​​​​​17.63​​​​​02/26/24​​
​​​​​03/02/15​​​​​4,500​​​​​0​​​​​13.46​​​​​03/02/25​​
​​​​​01/12/16​​​​​15,000​​​​​0​​​​​6.23​​​​​01/12/26​​
​​​​​05/07/19​​​​​3,750​​​​​11,250​​​​​15.44​​​​​05/07/29​​
​​​​​04/09/20​​​​​0​​​​​25,000​​​​​12.58​​​​​04/09/30​​
Benjamin W. Shore​​​​05/07/19​​​​​3,750​​​​​11,250​​​​​15.44​​​​​05/07/19​​
​​​​​04/09/20​​​​​0​​​​​15,000​​​​​12.58​​​​​04/09/30​​
Constantine Petropoulos​​​​10/15/14​​​​​10,000​​​​​0​​​​​12.91​​​​​10/15/24​​
​​​​​01/12/16​​​​​12,000​​​​​0​​​​​6.23​​​​​01/12/26​​
​​​​​05/07/19​​​​​2,500​​​​​7,500​​​​​15.44​​​​​05/07/29​​
​​​​​04/09/20​​​​​0​​​​​8,000​​​​​12.58​​​​​04/09/30​​
​
(a)
All options become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant.
​
 

(a)

All options become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant.

(b)

Option exercise prices have been adjusted for the special cash dividends of $2.50 per share paid on February 25, 2014, $1.50 per share paid on February 24, 2015, $3.00 per share paid on February 13, 2018 and $4.25 per share paid on February 5, 2019.

(c)

All options expire ten years after the date of grant.

19
21

​


(b)
Option exercise prices have been adjusted for the special cash dividends of $2.50 per share paid on February 25, 2014, $1.50 per share paid on February 24, 2015, $3.00 per share paid on February 13, 2018, $4.25 per share paid on February 5, 2019 and $1.00 per share paid on February 20, 2020.
​
(c)
All options expire ten years after the date of grant.
​
Option Exercises in 20192020 Fiscal Year

The named executive officers did not exercise any stock options during the Company’s last completed fiscal year, except Christopher T. Mastrogiacomo

Matt Farabaugh acquired 75,0008,000 shares upon the exercise of stock options during the Company’s last completed fiscal year, and the value realized on such exercise was $502,500$45,590 (with value realized equal to market value of the underlying shares of Common Stock on the date of exercise, which is the reported closing price of the Common Stock on the New York Stock Exchange on such date, less the exercise price, times the number of shares acquired, without deducting any taxes paid by Mr. Mastrogiacomo)Farabaugh). No other named executive officer exercised any stock options during the Company’s last completed fiscal year. The Company does not award stock to any of its executive officers or to any of its other employees, and the Company has not granted any stock appreciation rights.

Pension Benefits and Non-Qualified Defined Contribution and Other Non-Qualified Deferred Compensation Plans

The Company does not have a defined benefit pension plan and does not provide pension benefits for its executive officers or for any of its other employees, and the Company does not have any non-qualified supplemental pension, defined contribution or other deferred compensation plan for its executive officers or for any of its other employees.

Employment, Severance and Change-in-Control Agreements

All of the Company’s executive officers and other employees are employees-at-will, meaning that either the employee or the Company may terminate the employee’s employment at any time for any reason or for no stated reason and with or without an explanation. The Company does not have employment agreements or employment termination or severance agreements or change-in-control agreements with any of its executive officers or any of its other employees, other than (i) an employment agreement which the Company had with the Managing Director of the Company’s wholly owned subsidiary in Singapore prior to the sale of the Company’s electronics business in December 2018, (ii) Retention Bonus Agreements which the Company had with Christopher T. Mastrogiacomo, the former President and Chief Operating Officer of the Company prior to the sale of the Company’s electronics business, who is also one of the executive officers named in the “Summary Compensation Table” elsewhere in this Proxy Statement, and with one other former officer of the Company prior to such sale and (iii) a provision in its 2002 Stock Option Plan that in the event of a “Change of Control” (as defined in such Plan) any outstanding options will become fully exercisable. The 2018 Stock Option Plan does not provide for the acceleration of the exercisability of outstanding options in the event of a “Change of Control” (as defined in the 2018 Stock Option Plan), if the successor/acquirer company assumes or substitutes the options outstanding under the Plan with successor/acquirer options equal in value to options outstanding at the time of the “Change of Control”. If the successor/acquirer assumes or substitutes the options outstanding under the Plan, accelerated vesting will occur only upon involuntary termination of employment without “Cause” (as defined in the 2018 Stock Option Plan) or voluntary termination of employment for “Good Reason” (as defined in the 2018 Stock Option Plan) within one year after the “Change of Control”. All of the Company’s executive officers and other employees are employees-at-will, meaning that either the employee or the Company may terminate the employee’s employment at any time for any reason or for no stated reason and with or without an explanation.

The Retention Bonus Agreement with Mr. Mastrogiacomothe former President and Chief Operating Officer was dated February 2, 2018 and provided that he would earn a one-time lump sum cash bonus of $365,730 (which was the equivalent of Mr. Mastrogiacomo’s currenthis annual salary)salary at the time) on the date of the first transaction in which the Company consummated the sale or other disposition of all or a majority of the Company’s electronics business to a non-affiliated third party if such closing occurred on or before April 30, 2019, and if Mr. Mastrogiacomohe (i) was continuously employed by the Company from the date of the Retention Bonus Agreement through the date of such closing (the “Retention Period”), (ii) was terminated by the Company without “Cause” (as defined in the Retention Bonus Agreement) during the Retention Period or (iii) effectuated a voluntary termination of employment for “Good Reason” (as defined in the Retention Bonus Agreement) during the Retention Period. Mr. MastrogiacomoThe former President and Chief Operating Officer also was requested to


22

execute a general release for the benefit of the Company and other specified persons, which became effective prior to any payment under the Retention Bonus Agreement. The Retention Bonus Agreement with the other officer was the same as the Agreement


20
​

with Mr. Mastrogiacomothe former President and Chief Operating Officer but with a cash bonus of $225,000. The Retention Bonus Agreements were executed by the Company in connection with the Company’s strategic evaluation of its electronics business announced by the Company in January 2018. The Company paid $365,730 to Mr. Mastrogiacomothe former President and Chief Operating Officer and $225,000 to the other officer in December 2018 after the Company completed the sale of its electronics business to AGC Inc. as announced by the Company in its news release on December 4, 2018, and Mr. Mastrogiacomothe former President and Chief Operating Officer and the other officer were transferred to the purchaser of the Company’s electronics business in December 2018.

If a “Change of Control”, as defined in the 2002 Stock Option Plan, had occurred on March 1, 2019,2020, the last business day of the Company’s last completed fiscal year, the named executive officers couldwould not have realized the following valuesany value from the unexercisable stock options listed in the table elsewhere in this Proxy Statement under the caption “Outstanding Equity Awards at 20192020 Fiscal Year–End”Year-End” (with value realized equaling the market value of the underlying shares of Common Stock on March 1, 2019,2020, which is the reported closing price of the Common Stock on the New York Stock Exchange on such date, which was $17.40,$13.91, less the exercise price, times the number of shares that could be acquired at that date, without deducting any taxes): Mr. Shore — $88,987; Mr. Farabaugh — $25,425; Mr. Esquivel — $38,138; Mr. Gilhuley — $25,425; and Mr. Petropoulos — $30,510.

because the exercise prices of the options are greater than the fair market values on such date.

Chief Executive Officer Pay Ratio

Pursuant to a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Securities and Exchange Commission (the “SEC”) adopted a rule in August 2015 requiring annual disclosure of the ratio of the annual total compensation of a company’s median employee to the annual total compensation of a company’s principal executive officer. The Company is providing the following information in accordance with this requirement.

In the 20192020 fiscal year, the annual total compensation of Brian E. Shore, the Company’s Chief Executive Officer, was $254,808,$315,700, and the annual total compensation of the Company’s median employee was $41,507.$45,343. Consequently, the ratio of the annual total compensation of the Company’s Chief Executive Officer to the annual total compensation of the Company’s median employee was 6.17.0 to 1.

For the 2019 fiscal year, the Company re-identified its median employee because it believed that the change in its employee population resulting from the sale of its electronics business in December 2018 could result in a significant change to its pay ratio disclosure.

The employee population used to identify the Company’s median employee for the 20192020 fiscal year included all employees of the Company, not including Mr. Shore, whether employed on a full-time, part-time, seasonal or temporary basis, as of March 3, 2019,1, 2020, the last day of the Company’s 20192020 fiscal year. As of such date, the Company had 112136 total employees, all of which were in the U.S.

The Company used total cash compensation, including base salary or wages plus overtime pay for the 20192020 fiscal year and annual wage supplements and bonuses paid and accrued for the 20192020 fiscal year, as the consistently-applied compensation measure to identify the Company’s median employee. The Company annualized the total cash compensation for permanent employees who commenced work or were on leave during the 20192020 fiscal year. No cost-of-living adjustments were made when identifying the median employee. The Company otherwise did not make any assumptions, adjustments, or estimates with respect to the employee population or the compensation measure.

After identifying the median employee, the Company calculated the annual total compensation for the median employee using the same methodology used for the named executive officers as set forth in the “Summary Compensation Table” in this Proxy Statement. As described in such “Summary Compensation Table”, Mr. Shore’s percentages of compensation to be contributed to the Profit Sharing


23

Plan have not been determined for the 20192020 fiscal year as of the date of this Proxy Statement. With respect to the Profit Sharing Plan contribution, the annual total compensation amounts for Mr. Shore and for the median employee assume no Profit Sharing Plan contributions for the 20192020 fiscal year since no such contributions were made for the 20192020 fiscal year. If a Profit Sharing Plan contribution is made for Mr. Shore for the 20192020 fiscal year, and if such contribution has a material impact on the pay ratio, the Company will include a revised pay ratio in a Current Report on Form 8-K filed pursuant to Item 5.02(f) of such Form.

SEC rules provide flexibility in the method of determining the median employee and calculating the pay ratio, and therefore the pay ratio reported may not be comparable to the pay ratio reported by other companies, including peer companies.


21
​

TRANSACTIONS WITH RELATED PERSONS

The Company’s written Related Person Transactions Policy provides that any transaction between the Company and any director or executive officer of the Company or any beneficial owner of more than 5% of any class of the Company’s voting securities or any immediate family member of a director or executive officer of the Company or such beneficial owner, in which the amount involved exceeds $120,000, requires the approval of the Company’s General Counsel or Chief Executive Officer, and the Board. The Policy, together with the Company’s Code of Ethics and Code of Business Conduct and Ethics, provides that related person transactions generally are prohibited unless the Board determines in advance that any such transaction is conducted on terms that are fair to the Company and in the best interests of the Company and its shareholders. The Company’s Related Person Transactions Policy is available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders –— Charters and Codes”.

During the last two fiscal year,years, Brian E. Shore, the Company’s Chief Executive Officer, from time to time used an aircraft owned by him to conduct business on behalf of the Company. The Company paid Mr. Shore an aggregate of $76,350 in the 2020 fiscal year and $76,200 in the 2019 fiscal year as reimbursement for a portion of the costs associated with the use of this aircraft for Company business. The Board believes that the amounts paid by the Company to Mr. Shore as reimbursement for use of this aircraft for Company business were substantially less than the amounts that the Company would have paid for the use of a similar aircraft owned by an independent third-party. The Board also believes that such amounts reimbursed to Mr. Shore were substantially less than the costs incurred by Mr. Shore and attributable to such use of this aircraft and substantially less than the costs associated with the type of aircraft owned by Mr. Shore provided by an independent aircraft expert and that the use of Mr. Shore’s aircraft for Company business inured to the benefit of the Company.


22
​

PROPOSAL NO. 2 -— ADVISORY (NON-BINDING) RESOLUTION RELATING TO COMPENSATION OF THE NAMED EXECUTIVE OFFICERS

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which was signed into law by President Obama on July 21, 2010, requires public companies to provide their shareholders with a non-binding vote to approve executive compensation at least once every three years. The Company is providing this shareholder advisory vote on its executive compensation in accordance with Section 14A of the Exchange Act and Exchange Act Rule 14a-21(a), which the Securities and Exchange Commission (the “SEC”) adopted on January 25, 2011 in order to implement the Dodd-Frank Act’s requirement. See “Executive Officer Compensation – Compensation Discussion and Analysis – Shareholder VoteThe Company will include a shareholder vote on Executive Compensation” for information regardingexecutive compensation in its proxy materials each year until the next required vote on the frequency of shareholder votes on executive officer compensation.


24

compensation, which must be held no later than 2023, or until the Company’s Board of Directors otherwise determines that a different frequency is in the best interests of the Company and its shareholders.

As described in the “Compensation Discussion and Analysis” elsewhere in this Proxy Statement, the Compensation and Stock Option Committees have developed an executive officer compensation program designed to pay for performance and to align the long-term interests of the Company’s executive officers with the long-term interests of the Company’s shareholders. The Company’s disclosure in the Compensation Discussion and Analysis and the disclosure included elsewhere in this Proxy Statement under the caption “Executive Officer Compensation” have been provided in response to the requirements of Item 402 of Regulation S-K of the SEC and explain the compensation policies under which the Company paid its named executive officers for the 20192020 fiscal year.

Under the Dodd-Frank Act and the related SEC rules, the Company’s shareholders’ vote on this resolution is an advisory or “non-binding” vote. This means that the purpose of the vote is to provide shareholders with a method to give their opinion to the Board and the Compensation and Stock Option Committees about the Company’s executive officer compensation. The Board is not required by law to take any action in response to the shareholder vote. As an advisory vote, the outcome of this vote is not binding on the Company or on the Board. However, the Board and the Compensation and Stock Option Committees will consider the voting outcome in connection with their ongoing evaluation of the Company’s compensation programs and arrangements.

Shareholders are being asked to approve the Company’s named executive officer compensation as described in this Proxy Statement. This approval vote is not intended to address any specific element of compensation but rather the overall compensation of the Company’s named executive officers and the philosophy, policies and practices described in this Proxy Statement.

The Board recommends that shareholders approve the following resolution:

RESOLVED, that the shareholders approve the compensation of the named executive officers, as disclosed in this Proxy Statement pursuant to Item 402 of Regulation S-K of the Securities and Exchange Commission (including the Compensation Discussion and Analysis, the compensation tables and other narrative executive compensation disclosures).

Vote Required

Approval of the compensation of the Company’s named executive officers, on an advisory basis, requires the affirmative vote of the holders of a majority of the shares casting votes in persononline or by proxy on this proposal at the Meeting. Abstentions and broker non-votes will have no effect on the outcome of the vote.

The Board recommends that shareholders vote “FOR” approval of the compensation of named executive officers, as disclosed in this Proxy Statement pursuant to Item 402 of Regulation S-K of the Securities and Exchange Commission.Proxies will be voted in accordance with their terms and, in the absence of contrary instructions, for the approval, on an advisory basis, of the Company’s named executive officer compensation.


23
​

PROPOSAL NO. 3 - APPROVAL OF AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION TO CHANGE THE NAME OF THE COMPANY FROM PARK ELECTROCHEMICAL CORP. TO PARK AEROSPACE CORP.

The Board has approved and now recommends for shareholders’ approval of an amendment of the Company’s Restated Certificate of Incorporation, dated March 28, 1989, filed with the Secretary of State of the State of New York on April 10, 1989, as amended by the Certificate of Amendment of the Certificate of Incorporation, dated July 12, 1995, filed with the Secretary of State of the State of New York on July 17, 1995, as amended by the Certificate of Amendment of the Certificate of Incorporation, dated October 10, 2000, filed with the Secretary of State of the State of New York on October 11, 2000,


25

as amended by the Certificate of Change, dated October 27, 2005, filed with the Secretary of State of the State of New York on November 4, 2005 (as so amended, the “Certificate of Incorporation”), be further amended to change the name of the Company from “Park Electrochemical Corp.” to “Park Aerospace Corp.” (the “Name Change”). The text of the proposed amendment of the Company’s Certificate of Incorporation is set forth in Appendix A to this Proxy Statement.

On December 4, 2018, the Company completed the previously announced sale (the “Sale”) of its digital and radio frequency/microwave printed circuit materials business (the “Electronics Business”), including manufacturing facilities in Singapore, France, Arizona and California and R&D facilities in Arizona and Singapore, to AGC Inc., a Japanese corporation (the “Buyer”) for an aggregate purchase price of $145 million in cash. As a result of the Sale, the Company no longer operates an Electronics Business, and is now an Aerospace Company which develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. As a result, the current name of Park Electrochemical Corp. no longer accurately reflects the operations of the Company, whereas the proposed name change better reflects such operations.

The Name Change proposal, if approved by the Company’s shareholders, would have the effect of changing the legal name of the Company. If the Name Change is not approved, the Company’s legal name will continue to be Park Electrochemical Corp.

The Name Change will not affect the status of the Company or the rights of any shareholder in any respect, or the transferability of stock certificates presently outstanding. The currently outstanding share certificates evidencing shares of the Company’s securities bearing the name Park Electrochemical Corp. will continue to be valid and represent shares of Park Aerospace Corp. following the name change. In the future, new share certificates will be issued bearing the new name, but this in no way will affect the validity of shareholders’ current share certificates.

If the Name Change proposal is approved by the shareholders, the Name Change will become effective upon the filing of the Certificate of Amendment of the Certificate of Incorporation with the State of New York Department of State. The Company intends to file the Certificate of Amendment promptly after the shareholders approve the Name Change.

The text of the proposed Certificate of Amendment of the Certificate of Incorporation is attached as Appendix A to this Proxy Statement.

Vote Required

Approval of the Name Change requires the affirmative vote of the holders of a majority of all outstanding shares entitled to vote in person or by proxy on this proposal at the Meeting.

The Board recommends that shareholders vote “FOR” approval of the Name Change, as disclosed in this Proxy Statement. Proxies will be voted in accordance with their terms and, in the absence of contrary instructions, for the approval of the Name Change.

PROPOSAL NO. 4 -— RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 20202021 FISCAL YEAR

The Audit Committee has appointed CohnReznick LLP as the Company’s independent registered public accounting firm for the current fiscal year, which ends March 1, 2020,February 28, 2021, to audit the consolidated financial statements of the Company and its subsidiaries for the 20202021 fiscal year and the Company’s internal control over financial reporting;year; and the Board is requesting ratification of such appointment by the shareholders at the Meeting. If this appointment is not ratified by the holders of a majority of the shares voting in person oronlineor by proxy at the Meeting, the Audit Committee will consider appointing another independent registered public accounting firm. The Audit Committee may terminate the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm


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without the approval or ratification of the Company’s shareholders whenever the Audit Committee considers such termination to be appropriate. A representative of CohnReznick LLP is expected to be virtually present at the Meeting and will have an opportunity to make a statement if such representative so desires and will be available to respond to appropriate questions.

Vote Required

Ratification of CohnReznick LLP as the Company’s independent registered public accounting firm requires the affirmative vote of the holders of a majority of the shares casting votes in persononline or by proxy on this proposal at the Meeting. Abstentions will have no effect on the outcome of the vote.

The Board recommends that shareholders vote “FOR” the ratification of the appointment of CohnReznick LLP as the Company’s independent registered public accounting firm.Proxies will be voted in accordance with their terms and, in the absence of contrary instructions, for the ratification of such appointment.

Independent Registered Public Accounting Firm Fees

The following table shows the fees paid or accrued for audit, audit-related, tax and all other services rendered by CohnReznick LLP for the last two fiscal years ended March 1, 2020 and March 3, 2019, respectively:
​​​2020​​2019​
Audit Fees(a)
​​​$281,752​​​​$484,000​​
Audit-Related Fees(b)
​​​​14,000​​​​​14,000​​
Tax Fees​​​​0​​​​​0​​
All Other Fees​​​​0​​​​​0​​
​​​​$295,752​​​​$498,000​​
​
(a)
Audit fees include fees for the audit of the Company’s consolidated financial statements, interim reviews of the Company’s quarterly financial statements and February 25, 2018, respectively:

  

2019

  

2018

 

Audit Fees(a)

 $484,000  $484,000 

Audit-Related Fees(b)

  14,000   14,000 

Tax Fees

  0   0 

All Other Fees

  0   0 
  $498,000  $498,000 

the audit of the Company’s internal control over financial reporting and include out-of-pocket expenses.
​
(b)
Audit-Related fees consist of fees for the audit of the Company’s Employees’ Profit Sharing and 401(k) Retirement Savings Plan.

(a)

Audit fees include fees for the audit of the Company’s consolidated financial statements, interim reviews of the Company’s quarterly financial statements and the audit of the Company’s internal control over financial reporting and include out-of-pocket expenses.

(b)

Audit-Related fees consist of fees for the audit of the Company’s Employees’ Profit Sharing and 401(k) Retirement Savings Plan.

​
The services performed by CohnReznick LLP were pre-approved in accordance with the pre-approval policy adopted by the Audit Committee.

Audit Committee Pre-Approval Policy

The policy of the Audit Committee is to require that all services to be provided to the Company by the Company’s independent registered public accounting firm must be approved by the Audit Committee before such services are provided by the independent registered public accounting firm.


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​

DELINQUENT SECTION 16(a) REPORTS
Section 16(a) of the Exchange Act requires the Company’s officers and directors, and persons who own more than 10 percent of a registered class of the Company’s equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission and the New York Stock Exchange. Officers, directors and greater than 10 percent shareholders are required by regulations of the Securities and Exchange Commission to furnish the Company with copies of all Section 16(a) reports they file. Based solely on a review of the copies of such reports furnished to the Company, or written representations that no such reports were required, the Company believes that all Section 16(a) filing requirements applicable to its officers, directors and greater than 10 percent beneficial owners were complied with during the 2020 fiscal year.
SHAREHOLDER PROPOSALS

Shareholder proposals intended to be presented at the 20202021 Annual Meeting of Shareholders pursuant to Rule 14a-8 under the Exchange Act must be received by the Company at the Company’s principal executive offices for inclusion in the Proxy Statement and form of Proxy relating to that meeting by February 15, 2020.18, 2021. In order for shareholder proposals made outside of Rule 14a-8 under the Exchange Act to be considered “timely” within the meaning of Rule 14a-4(c) under the Exchange Act, such proposals must be received by the Company at the Company’s principal executive offices


27

by April 17, 2020.May 1, 2021. The Company’s By-Laws require that proposals of shareholders made outside of Rule 14a-8 under the Exchange Act must be submitted, in accordance with the requirements of the By-Laws, not later than April 17, 202022, 2021 and not earlier than March 18, 2020.

23, 2021.

OTHER MATTERS

Audit Committee Report

The Audit Committee assists the Board in fulfilling its oversight responsibilities with respect to the accounting, auditing, financial reporting, internal control and legal compliance functions of the Company and its subsidiaries. The Board of Directors has determined that all members of the Audit Committee are “independent”, as required by the current rules of the New York Stock Exchange. The Committee functions pursuant to a Charter that has been adopted by the Board, as required by rules of the New York Stock Exchange.

Management of the Company is responsible for the preparation, presentation and integrity of the Company’s financial statements, and for maintaining appropriate accounting and financial reporting principles and policies and internal controls and procedures designed to provide reasonable assurance of compliance with accounting standards and applicable laws and regulations. The independent registered public accounting firm is responsible for planning and carrying out an audit in accordance with the standards of the Public Company Accounting Oversight Board and expressing an opinion as to the conformity of the financial statements with generally accepted accounting principles and as to the Company’s internal control over financial reporting.

In the performance of its oversight function, the Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended March 3, 20191, 2020 with management and with CohnReznick LLP, the Company’s independent registered public accounting firm for the 20192020 fiscal year. The Audit Committee has also discussed with the independent registered public accounting firm the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board and the Securities and Exchange Commission. This discussion included, among other things, the quality of the Company’s accounting principles, the reasonableness of significant estimates and judgments, and the clarity of disclosure in the Company’s financial statements, including the disclosures relating to critical accounting policies and practices used by the Company. The Audit Committee has reviewed permitted services under the rules of the Securities and Exchange Commission as currently in effect and discussed with CohnReznick LLP their independence from management and the Company, including the matters in the written disclosures and the letter from the independent registered public accounting firm required by the Public Company Accounting Oversight Board in Rule 3526, Communication with Audit Committees Concerning Independence, and the Audit Committee has considered whether the provision of non-audit services by the independent

25
​

registered public accounting firm to the Company is compatible with maintaining such firm’s independence and has discussed with CohnReznick LLP their independence.

The members of the Audit Committee are not professionally engaged in the practice of auditing or accounting. The Audit Committee’s considerations and discussions referred to above do not assure that the audit of the Company’s financial statements for the fiscal year ended March 3, 20191, 2020 has been carried out in accordance with the standards of the Public Company Accounting Oversight Board or that the financial statements are presented in accordance with generally accepted accounting principles.


28

Based upon the review and discussions described in this Report, and subject to the limitations on the role and responsibilities of the Audit Committee referred to above and in the Charter, the Audit Committee has recommended to the Board that the audited financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 3, 20191, 2020 for filing with the Securities and Exchange Commission.

Audit Committee

Steven T. Warshaw, Chairman

Dale Blanchfield

Carl W. Smith

Audit Committee
Steven T. Warshaw, Chairman
Dale Blanchfield
Carl W. Smith
Proxy Solicitation

The Company will bear the expense of proxy solicitation. Directors, officers and employees of the Company and its subsidiaries may solicit proxies by mail, telephone, electronic-mail, facsimile or in person (but will receive no additional compensation for such solicitation). The Company also has retained Morrow Sodali LLC, 470 West Avenue, Stamford, Connecticut 06902, to assist in the solicitation of proxies in the same manner at an anticipated fee of approximately $7,500,$5,750, plus reimbursement of certain out-of-pocket expenses. In addition, brokerage houses and other custodians, nominees and fiduciaries will be requested to forward the soliciting material to beneficial owners and to obtain authorizations for the execution of proxies, and if they in turn so request, the Company will reimburse such brokerage houses and other custodians, nominees and fiduciaries for their expenses in forwarding such material.

Director Candidates

The Nominating Committee will consider director candidates recommended by shareholders. In considering candidates submitted by shareholders, the Nominating Committee will take into consideration the needs of the Board and the qualifications of the candidate. The Committee may also consider the number of shares held by the recommending shareholder and the length of time that such shares have been held. To have a candidate considered by the Nominating Committee, a shareholder must submit the recommendation in writing and must include the name of the shareholder and evidence of the shareholder’s ownership of Company stock, including the number of shares owned and the length of time of ownership, and the name of the candidate, the candidate’s resume or a listing of his or her qualifications to be a director of the Company and the candidate’s consent to be named as a director if selected by the Nominating Committee and nominated by the Board.

The shareholder recommendation and information described above must be sent to the Corporate SecretaryGeneral Counsel at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 1174711590 and must be received by the Corporate Secretary not less than 120 days prior toGeneral Counsel in accordance with the anniversary daterequirements of the Company’s most recent annual meeting of shareholders, which will beBy-Laws, not later than April 22, 2021 and not earlier than March 18, 2020.

23, 2021.

The Nominating Committee believes that the minimum qualifications for serving as a director of the Company are that a nominee demonstrate, by significant accomplishment in his or her field, an ability to make a meaningful contribution to the Board’s oversight of the business and affairs of the Company and have an impeccable record and reputation for honest and ethical conduct in both his or her professional and personal activities. In addition, the Nominating Committeeconsiders a candidate’s experiences, skills, expertise, diversity, character, business judgment, dedication, time availability in light of other commitments, potential conflicts of interest and such other relevant factors that the Committee considers appropriate in

26
​

the context of the needs of the Board. While the Nominating


29

Committee does not have a diversity policy, it considers diversity of knowledge, skills, professional experience, education and background in industries relevant to the Company as factors as it evaluates director candidates.

The Nominating Committee identifies potential nominees by asking current directors and executive officers to notify the Committee if they become aware of persons, meeting the criteria described above, who have had a change in circumstances that might make them available to serve on the Board –— for example, retirement as a CEO or CFO of a public company. As described above, the Nominating Committee will also consider candidates recommended by shareholders.

When a person has been identified by the Nominating Committee as a potential candidate, the Committee may collect and review publicly available information regarding the person to assess whether the person should be considered further. If the Nominating Committee determines that the candidate warrants further consideration, the Chairman or another member of the Committee contacts the person. Generally, if the person expresses a willingness to be considered and to serve on the Board, the Nominating Committee requests information from the candidate, reviews the candidate’s accomplishments and qualifications, including in light of any other candidates whom the Committee might be considering, and conducts one or more interviews with the candidate. In certain instances, Nominating Committee members may contact one or more references provided by the candidate or may contact other members of the business community or other persons who may have greater first-hand knowledge of the candidate’s accomplishments. The Nominating Committee’s evaluation process does not vary based on whether or not a candidate is recommended by a shareholder, although, as stated above, the Committee may take into consideration the number of shares held by the recommending shareholder and the length of time that such shares have been held.

Communications with Directors

The Board has established a process to receive communications from shareholders and other interested parties. Shareholders and other interested parties may contact any member (or all members) of the Board, including the non-management directors as a group, by mail. To communicate with the Board of Directors, any individual director or the non-management directors, correspondence should be addressed to the Board of Directors or any such individual director or the non-management directors by either name or title. All such correspondence should be sent “c/o Corporate Secretary”General Counsel” at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 11747.

11590.

All communications received as set forth in the preceding paragraph will be opened by the office of the Company’s Corporate SecretaryGeneral Counsel for the sole purpose of determining whether the contents represent a message to the directors of the Company. Any contents that are not in the nature of advertising, promotions of a product or service, or patently offensive material will be forwarded promptly to the addressee. In the case of communications to the Board or the non-management directors, the Corporate Secretary’sGeneral Counsel’s office will make sufficient copies of the contents to send to each director who is a member of the group to which the communication is addressed.

Code of Ethics and Business Conduct

For more than forty-five years, the Company has maintained basic corporate rules and guidelines agreed to in writing by its Chief Executive Officer, and prior to the sale of the electronics business, its business unit presidents and controllers. Such rules and guidelines cover such matters as personnel guidelines, transactions with suppliers, conflicts of interest and business ethics, transactions with relatives and friends, cash control and consolidations, capital expenditures, disposal of property, plant, equipment and inventory, insurance programs, legal matters and contracts, credit and collections, unusual business transactions and special charges and transfer charges, inventory levels, weekly and monthly financial reports and annual business plans, employee safety and environmental matters.


30

The Board has adopted a Code of Ethics for the Company’s Chief Executive Officer, Chief Financial Officer and Controller and, as required by rules of the New York Stock Exchange, a Code of Business Conduct and Ethics for the Company’s directors, officers and employees. Substantially all of the matters required to be addressed in the Code of Ethics and Code of Business Conduct and Ethics have been addressed


27
​

in the corporate rules and guidelines which the Company has maintained since 1967, although the Code of Business Conduct and Ethics applies to all directors, officers and employees of the Company and its subsidiaries.

The Company’s Code of Ethics and the Company’s Code of Business Conduct and Ethics are available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders -— Charters and Codes” as required by rules of the New York Stock Exchange and the Securities and Exchange Commission. In addition, copies of the Company’s Code of Ethics and Code of Business Conduct and Ethics are available in print to any shareholder upon request submitted to the Corporate SecretaryGeneral Counsel at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 11747.11590. The Company intends to satisfy any disclosure requirements regarding an amendment to, or waiver from, the Code of Ethics by posting such information on the Company’s web site at the above internet address.

Corporate Governance Guidelines

The Board has adopted Corporate Governance Guidelines, which are available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders -— Charters and Codes” as required by rules of the New York Stock Exchange and are available in print to any shareholder upon request submitted to the Corporate SecretaryGeneral Counsel at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 11747.

11590.

Equity Compensation Plan Information
Plan Category​​
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
(1)
​​
Weighted-
average
exercise
price of
outstanding
options,
warrants
and rights
(2)
​​
Number of
securities remaining
available for
future issuance
under equity
compensation
plans (excluding
securities
reflected in
column (1))(b)
(3)
​
Equity compensation plans approved by security holders(a)
​​​​510,634​​​​$12.45​​​​​692,100​​
Equity compensation plans not approved by security holders(a)
​​​​-0-​​​​​-0-​​​​​-0-​​
Total​​​​510,634​​​​$12.45​​​​​692,100​​
​
(a)
As of the end of the 2020 fiscal year, the Company’s only equity compensation plan was its 2018 Stock Option Plan, which was approved by the Company’s shareholders in July 2018. Prior to the 2018 Stock Option Plan, the Company had the 2002 Stock Option Plan which had been approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company.
​
(b)
As of the date of this Proxy Statement, 564,500 securities remain available for future issuance under the 2018 Stock Option Plan.
​
Other Matters to be Presented to the Meeting

The Board does not know of any other matters to be brought before the Meeting. If any other matters not mentioned in this Proxy Statement are properly brought before the Meeting, including matters incident to the conduct of the Meeting or relating to any adjournment of the meeting, the persons named in the enclosed proxy intend to vote such proxy in accordance with their best judgment on any other matters properly presented at the Meeting.


28
​

Annual Report

The Annual Report on Form 10-K, including financial statements, of the Company for the fiscal year ended March 3, 20191, 2020 is enclosed herewith but is not a part of the proxy soliciting material.herewith. Additional copies of the Annual Report on Form 10-K are available to shareholders at no charge upon written request to the Corporate SecretaryGeneral Counsel of the Company at the Company’s office at 48 South Service1400 Old Country Road, Melville,Westbury, New York 1174711590 or are available on the Company’s web site at www.parkelectro.comwww.parkaerospace.com under the caption “Shareholders –— SEC Filings”.

By Order of the Board of Directors,

Stephen E. Gilhuley

Executive Vice President–Administration

and Secretary

Dated: June 14, 2019


31

Appendix A

CERTIFICATE OF AMENDMENT

of the

CERTIFICATE OF INCORPORATION

of

PARK ELECTROCHEMICAL CORP.

(Under Section 805 of the Business Corporation Law)

FIRST.Board of Directors,
Constantine Petropoulos
Senior Vice President & General Counsel

Dated: June 18, 2020

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​
[MISSING IMAGE: tm2022568-1_proxycard1.jpg]
PARK AEROSPACE CORP.Your vote matters – here’s how to vote!You may vote online or by phone instead of mailing this card.OnlineGo to www.investorvote.com/PKE or scan the QR code — login details are located in the shaded bar below.Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas.PhoneCall toll free 1-800-652-VOTE (8683) within the USA, US territories and CanadaSave paper, time and money!Sign up for electronic delivery at www.investorvote.com/PKEAnnual Meeting Proxy Cardq IF VOTING BY MAIL, SIGN, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. qA Proposals — The current nameBoard of Directors recommends a vote “FOR” proposals 1, 2 and 3.For Against Abstain For Against Abstain For Against Abstain +1. Election of Directors:1a - Dale Blanchfield1d - Carl W. Smith1b - Emily J. Groehl1e - Steven T. Warshaw1c - Brian E. Shore2. Approval, on an advisory (non-binding) basis, of the corporation is PARK ELECTROCHEMICAL CORP. The name under which it was originally formed is: Park Name Plate Inc.

SECOND. The date of filingcompensation of the certificatenamed executive officers.For Against Abstain3. Ratification of incorporation withappointment of CohnReznick LLP as the DepartmentCompany’s independent registered public accounting firm for the fiscal year ending February 28, 2021.For Against Abstain4. The transaction of State is: March 31, 1954.

THIRD. The amendment effectedsuch other business as may properly come before the meeting.B Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign BelowPlease date and sign exactly as name appears hereon. Executors, administrators, trustees, etc. should so indicate when signing. If shares are held jointly, both owners should sign.Date (mm/dd/yyyy) — Please print date below.Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box.039VGC1 U P X +

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[MISSING IMAGE: tm2022568-1_proxycard2.jpg]
2020 Annual Meeting2020 Annual Meeting of Park Aerospace Corp. ShareholdersJuly 21, 2020, 11:00 am EDT Virtually via the internet at www.meetingcenter.io/254901410To access the virtual meeting, you must have the information that is printed in the shaded bar located on the reverse side of this form.The password for this meeting is — PKE2020.Small steps make an impact.Help the environment by this certificateconsenting to receive electronic delivery, sign up at www.investorvote.com/PKEq IF VOTING BY MAIL, SIGN, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. qPROXY CARD — PARK AEROSPACE CORP. +PROXY FOR ANNUAL MEETING OF SHAREHOLDERS JULY 21, 2020THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORSThe undersigned hereby constitutes and appoints P. MATTHEW FARABAUGH and CONSTANTINE PETROPOULOS, and each of amendment is as follows:

Paragraph Firstthem, the attorneys and proxies of the Certificateundersigned, with full power of Incorporation relatingsubstitution, to attend the nameAnnual Meeting of Shareholders of PARK AEROSPACE CORP. (the “Company”) to be held virtually on July 21, 2020 at 11:00 A.M., EDT, and any adjournments or postponements thereof, to vote all the shares of Common Stock of the corporation is amended in its entirety as follows:

“First: The name ofCompany which the corporation is Park Aerospace Corp.”

FOURTH. The certificate of amendment was authorized by:

X The vote of the board of directors followed by a vote of a majority of all outstanding sharesundersigned would be entitled to vote thereon at a meetingif personally present upon the proposals described

on the reverse side of shareholders.

__ The votethis proxy card.The validity of this proxy is governed by the New York Business Corporation Law.The undersigned hereby acknowledges receipt of the boardCompany’s Annual Report on Form 10-K for the fiscal year ended March 1, 2020 and the accompanying Notice of directors followed by the unanimous written consentMeeting and Proxy Statement and hereby revokes any proxy or proxies heretofore given.EACH PROPERLY EXECUTED PROXY WILL BE VOTED IN ACCORDANCE WITH SPECIFICATIONS MADE HEREON. IF NO SPECIFICATION IS MADE, THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED “FOR” PROPOSALS 1, 2 AND 3, AND IN THE DISCRETION OF THE PROXIES ON ANY OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING.C Non-Voting ItemsPLEASE ACT PROMPTLYSIGN, DATE & MAIL PROXY CARD TODAYChange of the holders of all outstanding shares.


A-1

Address — Please print new address below. Comments — Please print your comments below.+

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