<PAGE> 1
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or
Section 240.14a-12
LACLEDE GAS COMPANY
----------------------------------------------------
(Name of Registrant as Specified In Its Charter)
LACLEDE GAS COMPANY
----------------------------------------------------
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j)(2).
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
1) Title of each class of securities to which transaction applies:
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2) Aggregate number of securities to which transaction applies:
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3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:<F1>
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4) Proposed maximum aggregate value of transaction:
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[FN]
<F1>Set forth the amount on which the filing fee is calculated and state how
it was determined.
/ / Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing.
1) Amount Previously Paid:
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4) Date Filed:
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<PAGE> 2
LACLEDE GAS COMPANY
720 OLIVE STREET
ST. LOUIS, MISSOURI 63101
------------------------
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
------------------------
The Annual Meeting of Stockholders of Laclede Gas Company will be held at
Marriott's Pavilion Hotel, One Broadway, St. Louis, Missouri, beginning at 10:00
a.m., Central Standard Time, on Thursday, January 25, 1996, for the following
purposes:
1. To elect three Directors, each to serve for a term of three years and
until the respective successor shall be duly elected and qualified (see
Proposal 1 on page 3).
2. To ratify the appointment by the Board of Directors of Deloitte & Touche
as the firm of independent public accountants to audit the accounts of
the Company for the fiscal year ending September 30, 1996 (see Proposal 2
on page 18).
3. To transact such other business as may properly come before said meeting,
or any adjournment or adjournments thereof.
By order of the Board of Directors,
DONALD L. GODINER,
Secretary.
St. Louis, Missouri
December 26, 1995
I M P O R T A N T
We hope you will attend the Annual Meeting. If you are unable to be present,
please sign, date and return the enclosed proxy as soon as possible. A return
envelope, which does not require postage if mailed in the United States, is
enclosed for your convenience.
Stockholders representing a majority of Common Stock issued and outstanding
must be present or represented by proxy in order to constitute a quorum. To
ensure the presence of a quorum at this meeting, an early return of your proxy
is solicited by the Board of Directors.
<PAGE> 3
L A C L E D E G A S C O M P A N Y
720 OLIVE STREET
ST. LOUIS, MISSOURI 63101
-------------------------
P R O X Y S T A T E M E N T
This statement is furnished in connection with a solicitation of proxies by
the Board of Directors of Laclede Gas Company (hereinafter called the Company)
to be used at the Annual Meeting of Stockholders of the Company to be held on
January 25, 1996, for the purposes set forth in the accompanying Notice of
Annual Meeting of Stockholders. The Company's Annual Report for 1995, including
financial statements, has been mailed to stockholders. The Company's proxy
statement and form of proxy are being released to stockholders on approximately
December 26, 1995. Execution of the enclosed proxy given in response to this
solicitation will not affect a stockholder's right to attend the meeting and to
vote in person. Presence at the meeting of a stockholder who has signed a proxy
does not in itself revoke a proxy. Any stockholder giving a proxy may revoke it
any time before it is exercised by giving notice thereof to the Company in
writing or in open meeting. Unless so revoked, the shares represented thereby
will be voted in accordance with the specifications thereon.
The Company has authorized 50 million shares of $1.00 Par Value Common Stock
and on October 31, 1995, there were outstanding 17,466,380 shares. Only holders
of Common Stock at the close of business on December 11, 1995, are entitled to
notice of, and to vote at, the meeting. Generally, each share of Common Stock
represents one vote; but in the election of Directors, stockholders have
cumulative voting rights. If cumulative voting rights are exercised by any
stockholder, he or she shall have the right to cast as many votes in the
aggregate as shall equal the number of Common Stock shares so held by him or her
in the Company, multiplied by the number of Directors to be elected. Each
stockholder may cast the whole number of votes, either in person or by proxy,
for one nominee, or distribute them among two or more nominees. To exercise
cumulative voting rights, please indicate appropriate instructions on the face
of the proxy. Unless directions on cumulative voting are specified in the proxy,
the persons named in the form of proxy reserve the right to vote each proxy
cumulatively and for the election of less than all the nominees, but they do not
presently intend to do so unless candidates other than those named herein for
Directors are duly proposed at the meeting other than by management of the
Company.
Stockholders representing a majority of the Common Stock issued and
outstanding must be present or represented by proxy to constitute a quorum. With
regard to the election of Directors, since three Directors are to be elected,
the three nominees receiving the greatest number of affirmative votes will be
deemed elected; therefore, shares represented by proxies which are marked
``WITHHOLD AUTHORITY'' will have no effect. If a stockholder excepts from the
proxy one or more Director
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<PAGE> 4
nominees, all votes represented by the shares held by such stockholder shall,
unless otherwise specifically stated, be allocated as evenly as possible for and
among the remaining nominees. With regard to Proposal 2, or any other matters
properly brought before this meeting, approval requires the affirmative vote of
a majority of the shares entitled to vote and represented in person or by proxy
at this meeting (unless a greater affirmative vote is required by the Company's
Articles of Incorporation or by state law). Shares represented by proxies which
are marked ``ABSTAIN'' or which deny discretionary authority on any other
matters will be counted as shares present for purposes of determining quorum;
such shares will also be treated as shares present and entitled to vote on
Proposal 2 and any such other matters, which will have the same effect as a vote
against Proposal 2 and any such other matters. Proxies relating to ``street
name'' shares which are not voted by brokers on one or more, but less than all,
matters will be considered present at the Annual Meeting for purposes of
determining quorum, but will not be treated as shares represented at the meeting
as to such matter(s) not voted on, and therefore will not have the effect of
either an affirmative or negative vote, except where the vote of the holders of
a majority of outstanding Common Stock is required.
When a stockholder participates in the Company's Dividend Reinvestment and
Stock Purchase Plan, the proxy to vote shares registered in the stockholder's
own name will include those shares held for the stockholder in the Dividend
Reinvestment and Stock Purchase Plan. If the stockholder does not send any proxy
to vote the shares registered in his or her own name, the shares held for the
stockholder in the Dividend Reinvestment and Stock Purchase Plan will, unless
such stockholder attends the meeting and votes in person, not be voted or
counted for the purpose of determining a quorum.
STOCKHOLDERS' PROPOSALS
Stockholders' proposals to be considered for inclusion in the Company's
proxy statement must be submitted on a timely basis. Proposals for the 1997
Annual Stockholders' Meeting must be received by the Company no later than
August 29, 1996. Any such proposals, as well as any questions related thereto,
should be directed to the Secretary of the Company.
PROPOSAL 1. ELECTION OF DIRECTORS
It is the intention of the persons named in the enclosed form of proxy to
vote such proxy FOR the election of the three nominees listed below for
Directors for terms expiring in 1999. If any nominee becomes unavailable for any
reason before the meeting (which is not anticipated), the proxies will be voted
for a person to be selected by the Board of Directors of the Company.
INFORMATION ABOUT NOMINEES AND DIRECTORS
The following information with respect to principal occupation or employment
for the past five years, name and principal business of the corporation or other
organization in which such occupation
3
<PAGE> 5
or employment is carried on, and in regard to other affiliations, and to
beneficial ownership of securities at September 30, 1995, has been furnished to
the Company by the respective nominees and Directors continuing in office. Mr.
Boyd F. Schenk will not stand for reelection this year since he is retiring from
the Board of Directors, such retirement to be effective following the Annual
Meeting. The Board has selected Richard E. Beumer as the Company's nominee to
fill the directorship vacancy created by Mr. Schenk's retirement, and Messrs.
Robert C. Jaudes and Robert P. Stupp, the two other Directors whose terms will
expire on January 25, 1996, will stand for reelection.
NOMINEES FOR NEW TERM (TO EXPIRE AT ANNUAL MEETING, 1999):
RICHARD E. BEUMER, 57, is, and since July 1, 1994 has been, President and Chief
Executive Officer of Sverdrup Corporation. Sverdrup Corporation provides
complete capabilities for the development, design, construction and operation of
capital facilities and technical systems. Prior to that he served as President
of Sverdrup Corporation from January 1, 1993 to June 30, 1994. Previously, he
served as an Executive Vice President of Sverdrup Corporation from January 1,
1991 to December 31, 1992. He is a director of Roosevelt Financial Group, Inc.
ROBERT C. JAUDES, 61, has been Chairman of the Board, President and Chief
Executive Officer since January 27, 1994 and prior to that served as President
and Chief Executive Officer of Laclede Gas Company since August 1, 1991. From
October 1, 1990, to August 1, 1991, he served as President. Mr. Jaudes has been
with Laclede Gas Company since 1955. He is a Director of The Boatmen's National
Bank of St. Louis.
Year first elected a Director: 1983<Fa>
ROBERT P. STUPP, 65, is, and since December 31, 1990, has been, the President of
Stupp Bros., Inc., established on December 31, 1990, which has four operating
divisions: Stupp Bros. Bridge & Iron Co. of St. Louis, Missouri, fabricator of
iron and steel; Stupp Corporation of Baton Rouge, Louisiana, a steel pipe
manufacturer; Builders Engineering Company of St. Louis, Missouri; and Stupp
Metals of St. Louis, Missouri, a steel service center. Mr. Stupp currently
serves in senior executive positions in these operating divisions. He has served
as a senior executive officer of one or more of those entities since 1960. He is
a Director of Stupp Bros., Inc.
Year first elected a Director: 1990
YOUR BOARD OF DIRECTORS RECOMMENDS THAT THE FOREGOING NOMINEES
EACH BE ELECTED FOR A THREE-YEAR TERM EXPIRING IN 1999 AND UNTIL
THE RESPECTIVE SUCCESSOR SHALL BE DULY ELECTED AND QUALIFIED.
[FN]
- --------
<Fa> ``Control Person''--defined as one who, other than solely as a Director of
Laclede Gas Company, possesses the power to direct the management and
policies of Laclede Gas Company.
4
<PAGE> 6
TERM EXPIRING AT ANNUAL MEETING, 1997:
ANDREW B. CRAIG, III, 64, is Chairman of the Board and Chief Executive Officer
of Boatmen's Bancshares, Inc. He has been Chairman since 1989, Chief Executive
Officer since 1988 and was President from 1985 to 1994. He was Chairman of the
Board of The Boatmen's National Bank of St. Louis from 1985 until January 1992.
In addition to being a Director of Boatmen's Bancshares, Inc., he is a Director
of Petrolite Corporation and Anheuser-Busch Companies, Inc.
Year first elected a Director: 1994
C. RAY HOLMAN, 53, is Chairman of the Board, President and Chief Executive
Officer of Mallinckrodt Group Inc. (formerly IMCERA Group Inc.). He has been
Chairman since October 1994 and President and Chief Executive Officer since
December 1992. He served both as Corporate Vice President of Mallinckrodt Group
Inc. from 1990 and President and Chief Executive Officer of Mallinckrodt
Medical, Inc., a subsidiary of Mallinckrodt Group Inc., from 1989 to December
1992. In addition to being a Director of Mallinckrodt Group, Inc., Mr. Holman is
a Director of Boatmen's Bancshares, Inc.
Year first elected a Director: 1994
WILLIAM E. NASSER, 56, retired in November 1995 as Chairman of the Board, Chief
Executive Officer and President of Petrolite Corporation. He had served in that
capacity since February 1992, and prior to February 1992 he had served as
President of Petrolite Corporation since June 1988. Mr. Nasser had been with
Petrolite Corporation since 1962, serving previously as Vice President and
General Manager of Petrolite's Polymers Division. In addition to being a
Director of Petrolite Corporation, he is a Director of The Boatmen's National
Bank of St. Louis and Energy BioSystems Corporation.
Year first elected a Director: 1994
TERM EXPIRING AT ANNUAL MEETING, 1998:
DR. HENRY GIVENS, JR., 62, has been President of Harris-Stowe State College for
the last 16 years. He is a Director of Mark Twain Bancshares, Inc.
Year first elected a Director: 1992
MARY ANN KREY, 48, has been Chairman and Chief Executive Officer of Krey
Distributing Co., an Anheuser-Busch wholesaler, since December 1986. She is a
Director of Commerce Bank of St. Louis and CPI Corporation.
Year first elected a Director: 1992
H. EDWIN TRUSHEIM, 68, retired on January 26, 1995 as Chairman of the Board of
General American Life Insurance Company, a mutually owned company serving both
individuals and groups with life and
5
<PAGE> 7
health insurance as well as pension plans and pension administrative services.
Previously, he was Chairman of the Board and Chief Executive Officer of General
American Life Insurance Company from January 1986 to May 15, 1992, at which time
he relinquished the title of Chief Executive Officer, but remained as Chairman
of the Board until January 26, 1995. He is a Director of Angelica Corporation,
Venture Stores, Inc., RehabCare Corporation, and Reinsurance Group of America.
Year first elected a Director: 1986
The standing committees of the Board of Directors for the fiscal year ended
September 30, 1995, included the Audit Committee, the Compensation Committee and
the Nominating Committee.
The Audit Committee, comprised of five members, now consisting of: Messrs.
Craig, Givens, Holman, Schenk, and Trusheim, Chairman, met three times during
the 1995 fiscal year. It is the duty of the Committee to recommend to the Board
independent auditors to perform audit and non-audit services, review the scope
and results of such services, review with management and the independent
auditors any recommendations of the auditors regarding changes and improvements
in the Company's accounting procedures and controls and management's response
thereto, and report to the Board after each Audit Committee meeting.
The Compensation Committee, comprised of four members, now consisting of:
Messrs. Nasser, Stupp, Trusheim, and Schenk, Chairman, met three times during
the 1995 fiscal year. It is the duty of the Committee to review and recommend to
the Board the salaries and all other forms of compensation of the Company's
Officers.
The Nominating Committee, comprised of five members, now consisting of:
Messrs. Nasser, Schenk, Stupp, Trusheim, and Jaudes, Chairman, met once during
the 1995 fiscal year. It is the duty of the Nominating Committee to recommend
new Director nominees to the Board of Directors. Stockholders may recommend
Director nominees to the Committee in writing, giving pertinent background
information, and such person will be given the same consideration as any other
person reviewed as a possible nominee.
During the 1995 fiscal year, there were 14 meetings of the Board of
Directors. All Directors attended 75% or more of the aggregate number of
meetings of the Board and applicable committee meetings.
BENEFICIAL OWNERSHIP OF COMPANY COMMON STOCK
The following table sets forth as of September 30, 1995 the beneficial
ownership of the Company's Common Stock by (i) Stupp Bros., Inc., the only
person or entity who as of September 30, 1995, is known to be the beneficial
owner of 5% or more of the Company's Common Stock, (ii) each of the Directors
and Director nominees, (iii) each of the Company's current and former Executive
Officers listed in the Summary Compensation Table, and (iv) all Directors,
Director nominees, and Executive Officers as a group.
6
<PAGE> 8
<TABLE>
AMOUNT AND NATURE OF OWNERSHIP
<CAPTION>
SOLE VOTING SHARED VOTING
AND/OR AND/OR
NAME OF INVESTMENT INVESTMENT PERCENT
BENEFICIAL OWNER POWER POWER TOTAL OF CLASS
---------------- ----------- ------------- ----- --------
<S> <C> <C> <C> <C>
R. E. Beumer............................................. -0- -0- -0- -0-
R. J. Carroll............................................ -0- -0- -0- -0-
A. B. Craig, III......................................... 2,000<F1> -0- 2,000 <F*>
H. Givens, Jr............................................ 1,400<F1> -0- 1,400 <F*>
D. L. Godiner............................................ 980 -0- 980 <F*>
C. R. Holman............................................. 2,000<F1> -0- 2,000 <F*>
R. C. Jaudes............................................. 6,024 4,000 10,024 <F*>
M. A. Krey............................................... 2,400<F1> -0- 2,400 <F*>
R. M. Lee................................................ 2,567 -0- 2,567 <F*>
W. E. Nasser............................................. 1,000<F1> -0- 1,000 <F*>
K. J. Neises............................................. 113 -0- 113 <F*>
B. F. Schenk............................................. 6,000 -0- 6,000 <F*>
R. P. Stupp.............................................. 2,432<F1><F2> -0- 2,432 <F*>
H. E. Trusheim........................................... 2,474<F1> -0- 2,474 <F*>
D. H. Yaeger............................................. 1,424 -0- 1,424 <F*>
Stupp Bros., Inc.........................................1,155,000<F3> -0- 1,155,000 6.6%
All Directors, Director Nominees and
Executive Officers as a Group ......................... 41,743<F4> <F*>
<FN>
- --------
<F1> Includes restricted, nonvested shares granted under the Restricted Stock
Plan for Non-Employee Directors, as described in more detail on page 17.
<F2> Does not include the shares owned by Stupp Bros., Inc., which are set forth
separately in the table and of which shares Mr. Stupp is a beneficial owner
with shared voting and investment power.
<F3> Mr. Stupp is a Director and Executive Officer of Stupp Bros., Inc. and has
a one-third interest in a voting trust which controls 100% of the stock of
Stupp Bros., Inc.
<F4> This amount does not include the shares owned by Stupp Bros., Inc.
<F*> Less than one percent.
</TABLE>
7
<PAGE> 9
COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS
Set forth below is certain information as to amounts paid, earned or awarded
by the Company for the fiscal year ended September 30, 1995, and for the
immediately preceding two fiscal years for services in all capacities by the
Chief Executive Officer, the four other most highly compensated Executive
Officers, and one recently retired Executive Officer.
<TABLE>
SUMMARY COMPENSATION TABLE
<CAPTION>
ANNUAL COMPENSATION
---------------------------
NAME AND OTHER ANNUAL ALL OTHER
PRINCIPAL POSITION<F1> YEAR SALARY COMPENSATION<F2> COMPENSATION<F3>
---------------------- ---- ------ ---------------- ----------------
<S> <C> <C> <C> <C>
R. C. Jaudes 1995 $460,455 $ 129,310 $16,372
Chairman of the Board, 1994 $429,714 $ 121,480 $12,423
President and CEO 1993 $398,238 $ 121,160 $10,071
D. H. Yaeger 1995 $184,894 $ 7,440 $ 4,381
Executive Vice President-- 1994 $175,179 -- $ 4,245
Operations and Marketing 1993 $162,560 -- $ 4,115
D. L. Godiner 1995 $162,333 $ 7,440 $ 9,252
Senior Vice President, General 1994 $159,089 -- $ 6,162
Counsel and Secretary 1993 $151,885 -- $ 5,731
K. J. Neises 1995 $151,269 $ 4,650 $ 4,896
Senior Vice President--Gas Supply 1994 $144,286 -- $ 3,686
and Regulatory Affairs 1993 $135,059 -- $ 3,867
R. J. Carroll 1995 $138,444 $ 4,960 $ 4,101
Retired Senior Vice President-- 1994 $146,786 -- $ 4,058
Finance and Chief Financial Officer 1993 $135,119 -- $ 3,770
R. M. Lee 1995 $137,746 $ 4,650 $ 4,338
Senior Vice President-- 1994 $131,464 -- $ 3,525
Administrative Services 1993 $120,746 -- $ 3,491
<FN>
- --------
<F1> The ``Salary'' amount indicated for Mr. Carroll for the last fiscal year
does not include any compensation for September 1995, since he retired
prior to that month. Also, effective September 1, 1995, Mr. Yaeger was
promoted to Executive Vice President--Operations and Marketing; Mr. Lee was
named Senior Vice President--Administrative Services and Mr. Neises was
named Senior Vice President--Gas Supply and Regulatory Affairs.
<F2> The amounts in this column reflect dividend equivalents paid under the
Incentive Compensation Plan to the named Executive Officer during the three
most recent fiscal years together, in the case of Mr. Jaudes, with Mr.
Jaudes' Board of Directors' and Board committee fees for those three
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<PAGE> 10
years. For a more detailed discussion of the Incentive Compensation Plan,
see the Long-Term Incentive Plan Table and discussion thereof on page 9.
<F3> For 1995 this column includes (a) above-market interest on deferrals under
the Company's Deferred Income Plan described on page 12 (Mr. Jaudes,
$5,628; Mr. Yaeger, $-0-; Mr. Godiner, $2,873; Mr. Neises, $266; Mr.
Carroll, $391; and Mr. Lee, $266); (b) above-market interest on deferrals
under the Company's Deferred Income Plan II described on page 13 (Mr.
Jaudes, $6,571; Mr. Yaeger, $406; Mr. Godiner, $2,394; Mr. Neises, $1,001;
Mr. Carroll, $179; and Mr. Lee, $591); (c) Company matching contributions
under the Company's Salary Deferral Savings Plan which was established
under Section 401(k) of the Internal Revenue Code (Mr. Jaudes, $4,173; Mr.
Yaeger, $3,975; Mr. Godiner, $3,985; Mr. Neises, $3,629; Mr. Carroll,
$3,531; and Mr. Lee, $3,481).
</TABLE>
INCENTIVE COMPENSATION PLAN
The following table discloses certain information about the Company's
Incentive Compensation Plan, which is considered a type of long-term incentive
plan under the proxy disclosure rules of the Securities and Exchange Commission.
<TABLE>
LONG TERM INCENTIVE PLANS--AWARDS IN LAST FISCAL YEAR
<CAPTION>
PERIOD
NUMBER UNTIL
NAME OF UNITS MATURATION<F1>
---- -------- --------------
<S> <C> <C>
Robert C. Jaudes.............................................. 5,000 2 years
Douglas H. Yaeger............................................. 8,000 5 years
Donald L. Godiner............................................. 8,000 2 years
Kenneth J. Neises............................................. 5,000 5 years
Robert J. Carroll............................................. 8,000<F2> 4 years
Robert M. Lee................................................. 5,000 5 years
<FN>
- --------
<F1> Prior to January 26, 1995, Dividend Equivalents (equal to the cash dividend
paid on each share of the Company's Common Stock) were paid on each of the
Share Units to the recipient until his death, and thereafter to a surviving
spouse, if any, for life. Effective for awards of Share Units made on and
after January 26, 1995, no post-retirement Dividend Equivalents and no
post-retirement Deferral Compensation amounts shall be paid to an awardee
who retires before attaining the age of 65 (other than by reason of death
or disability or following a hostile change of control) unless the awardee
remains employed by the Company for at least the following respective
periods (based on the Awardee's age at the date of the award of the Share
Units) subsequent to the date upon which the Share Units are awarded:
9
<PAGE> 11
<CAPTION>
NUMBER OF YEARS SERVICE
AGE AT REQUIRED FOLLOWING THE
DATE OF AWARD DATE OF SUCH AWARD
- ------------- ------------------------
<S> <C>
61 and older.............................. 2
55-60..................................... 4
54 and under.............................. 5
The amount of Dividend Equivalents paid to any named Executive during the
last fiscal year is disclosed in the ``Other Annual Compensation'' column in
the Summary Compensation Table.
<F2> Because Mr. Carroll retired before the Share Units awarded to him in fiscal
1995 matured, he will receive no post-retirement benefits from these 8,000
Share Units.
</TABLE>
Each year, the Company credits or debits an amount (Deferred Compensation
Amount) to each Share Unit outstanding at the end of a fiscal year equal,
subject to certain adjustments, to the per common share net increase or decrease
in Consolidated Retained Earnings for that fiscal year. The aggregate of annual
Deferred Compensation Amounts are payable in ten equal annual installments to
the recipient or, if he is no longer living, his designated beneficiaries or
estate beginning on the fifth month following the month in which the earlier of
the following occurs: retirement, death, disability or the recipient's election
to terminate employment with the Company following a hostile change in control
(as defined in the Plan). No Deferred Compensation Amounts accrue on Share Units
held by a recipient after the fiscal year in which his employment has terminated
due to retirement, disability, death or the recipient's election to terminate
following a hostile change in control. Furthermore, if a participant's
employment with the Company ceases other than by reason of retirement,
disability, death or termination of employment following a hostile change in
control, then all Share Units are forfeited and all rights to Deferred
Compensation Amounts and Dividend Equivalents on account of such Share Units
lapse. Similarly, if a participant retires before age 65 (other than by reason
of death or disability or following a hostile change in control), without
providing the required additional years of service as discussed in footnote 1 to
the table above, then no post-retirement benefits will be payable to such
participant for such Share Units. During the fiscal year ended September 30,
1995, $.03 was credited as a Deferred Compensation Amount on account of each
Share Unit. Interest accrues on the Deferred Compensation Amounts on Share Units
(for which the required additional years of service have been provided) only
after the date of retirement, disability, death or election of recipient to
terminate employment following a hostile change in control.
PENSION PLAN
The table below shows estimated annual benefits payable at a normal
retirement date under the Employees' Retirement Plan of Laclede Gas
Company--Management Employees and the Laclede Gas Company Supplemental
Retirement Benefit Plan.
10
<PAGE> 12
<TABLE>
PENSION PLAN TABLE
ESTIMATED ANNUAL BENEFITS UPON RETIREMENT
<CAPTION>
AVERAGE YEARS OF SERVICE
FINAL --------------------------------------------------------------------------
COMPENSATION<F1> 15 20 25 30 35 40
- ---------------- -- -- -- -- -- --
<S> <C> <C> <C> <C> <C> <C>
$ 75,000...................... $ 21,334 $ 28,445 $ 35,556 $ 42,667 $ 49,778 $ 56,890
100,000...................... 28,834 38,445 48,056 57,667 67,278 76,890
125,000...................... 36,677 48,903 61,129 73,355 85,580 97,806
150,000...................... 44,552 59,403 74,254 89,105 103,955 118,806
200,000...................... 60,302 80,403 100,504 120,605 140,705 160,806
250,000...................... 76,052 101,403 126,754 152,105 177,455 202,806
300,000...................... 91,802 122,403 153,004 183,605 214,205 244,806
350,000...................... 107,552 143,403 179,254 215,105 250,955 286,806
400,000...................... 123,302 164,403 205,504 246,605 287,705 328,806
450,000...................... 139,052 185,403 231,754 278,105 324,455 370,806
500,000...................... 154,802 206,403 258,004 309,605 361,205 412,806
550,000...................... 170,552 227,403 284,254 341,105 397,955 454,806
<FN>
- --------
<F1> ``Average Final Compensation'' is the higher of: (a) the annual average of
the highest 36 consecutive calendar months' compensation for the
participant's last 120 months of service; or (b) the annual average of the
highest three consecutive calendar years' compensation for the
participant's last ten calendar Years of Service. Compensation used for
pension formula purposes is the type of compensation included as ``Salary''
in the Summary Compensation Table.
</TABLE>
Benefits shown in the table (the calculation of which, in some cases, takes
into account the portion of Average Final Compensation in excess of Social
Security covered compensation, and, in other cases, is calculated after the
deduction of Social Security offset amounts) assume retirement at age 65, the
Years of Service shown, continued existence of the current plans without
substantial change and payment in the form of a single life annuity. Years of
Service as of September 30, 1995 for the persons named in the Summary
Compensation Table are as follows: R. C. Jaudes, 40 years; D. H. Yaeger, 4
years; D. L. Godiner, 15 years; K. J. Neises, 11 years; R. J. Carroll, 39 years;
and R. M. Lee, 17 years.
OTHER PLANS
An Executive Salary Protection Program for Executive Officers provides that
if a participating Executive Officer dies while an active employee of the
Company his or her beneficiaries will receive his or her annual salary for one
year, and one-half of his or her annual salary for the next nine years or
11
<PAGE> 13
until the Executive Officer would have been 65 years old, whichever period is
longer. When an Executive Officer dies after retiring from the Company, his or
her beneficiaries will receive an amount equal to twice his or her annual salary
if he or she dies prior to age 70, or one times his or her annual salary if he
or she dies after age 70. The annual cost to the Company of this program is
approximately $69,000.
The Company provides supplemental travel and accident insurance covering
Officers and certain key employees. The supplemental insurance provides coverage
for accidental death or dismemberment in an amount up to $250,000. Premiums
expensed on behalf of the Officers during fiscal 1995 amounted to $1,688.
The Company, as of January 25, 1990, adopted a Management Continuity
Protection Plan pursuant to which the Company has entered into Management
Continuity Protection Agreements (the ``Agreements'') with all of its Officers.
The Agreements provide that if the Officer's employment terminates for any
reason (other than death, disability or for actions involving moral turpitude)
within 54 months, in the case of Mr. Jaudes, or 42 months, in the case of all
other Officers, after a change in control of the Company, the Officer will
receive a non-discounted lump sum payment. The lump sum payment will be in an
amount equal to the Officer's average annual compensation for the five-year
period preceding termination multiplied by 2.99, in the case of Mr. Jaudes, or
2.00 for all other Officers. If the Officer remains employed by the Company for
more than six months after a change in control, the above benefit shall be
reduced, in the case of Mr. Jaudes, by one forty-eighth, or, in the case of all
other Officers, by one thirty-sixth for each month beyond such six-month period.
In no event, however, will the benefit be greater than the product of the
Officer's average monthly compensation for the five-year period preceding
termination and the number of months remaining from such termination until the
date the Officer will reach the age of 65. The Agreements expire upon the
earlier of (a) the effective date of the Officer's termination, if prior to a
change in control; or (b) 54 months, in the case of Mr. Jaudes, or 42 months, in
the case of all other Officers, after a change in control. Under the Agreements,
a ``change in control'' occurs when any person becomes a beneficial owner,
directly or indirectly, of the Company's securities representing (a) more than
50 percent of the voting power of the Company's outstanding securities or (b) at
least 30 percent but no more than 50 percent of such securities and a majority
of the outside members of the Company's Board of Directors decides that a change
in control has occurred.
Previously, the Company established a Deferred Income Plan for: (i)
non-employee Directors, and (ii) employee Directors, Officers and certain other
employees who are deemed by the Compensation Committee of the Board of Directors
to be key executives who contribute materially to the prosperity of the Company.
The plan permitted deferral through April 30, 1990 for each of four consecutive
years of up to 100% of fees and retainers for non-employee Directors and up to
15% of salary (excluding incentive compensation) for other participants. Such
deferrals, along with applicable income growth factors (at rates not to exceed
the greater of (i) twelve percent per annum, and (ii) the
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<PAGE> 14
annual corporate bond rates specified in Moody's Investors Service plus four
percent per annum), form the basis for certain benefits payable to the
participant upon retirement; death or permanent and total disability before
retirement; or termination of a participant's status as a Director or employee
before age 55. The amount of such benefit depends on the type of triggering
event, the amount deferred by a participant, the ages at which deferrals are
made and the participant's age at the time of the triggering event. In the event
a participant, following a change in control of the Company, terminates his or
her status as a Director or employee for good reason, or is terminated by the
Company without cause, such participant is entitled to receive a lump sum
benefit in the amount equal to the greater of: (i) the present value of the
account balance under the Deferred Income Plan to which the participant would be
entitled if he or she had continued to make deferrals during the remainder of
the annual deferral period and if he or she had terminated his or her status as
a Director or employee after reaching normal retirement age (for this purpose,
age 70 for all Directors, and age 65 for all other participants); or (ii) the
amount of the participant's account balance. At the Board of Director's meeting
on September 23, 1993, the Board approved a separate Deferred Income Plan II.
Deferred Income Plan II provides that the Board of Directors may from time to
time determine to open up the Deferred Income Plan II to allow deferrals during
one or more succeeding annual periods and to allow new participants in the
Deferred Income Plan. Participants were allowed to make deferrals during the
1995 calendar year and will also be allowed to make deferrals during the 1996
calendar year. During each deferral period a non-employee Director participant
may defer up to 100% of fees and retainers and an employee participant may defer
up to 15% of his or her annual salary (excluding incentive compensation). In
addition, under Deferred Income Plan II the minimum applicable income growth
factor for deferrals on and after October 1, 1993 shall not exceed the greater
of: (i) nine percent per annum; and (ii) the annual corporate bond rates
specified in Moody's Investors Services plus three percent per annum. The
remainder of the terms of the Deferred Income Plan II are similar to those of
the original Deferred Income Plan discussed above.
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN ANY OF THE COMPANY'S
FILINGS UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED, THAT MIGHT INCORPORATE THIS PROXY STATEMENT, IN WHOLE
OR IN PART, THE FOLLOWING COMPENSATION COMMITTEE REPORT REGARDING EXECUTIVE
COMPENSATION AND THE PERFORMANCE GRAPH ON PAGE 16 SHALL NOT BE INCORPORATED BY
REFERENCE INTO ANY SUCH FILINGS.
COMPENSATION COMMITTEE REPORT REGARDING EXECUTIVE COMPENSATION
The Compensation Committee of the Board of Directors, composed of four
independent non-employee Directors, administers the Company's executive
compensation program. None of such members is or has been an Officer or employee
of the Company or any of its subsidiaries. After review and approval by the
Committee, all material issues relating to executive compensation are submitted
to the Board for consideration and approval.
13
<PAGE> 15
The philosophy of the Committee as it relates to executive compensation is
that the Chief Executive Officer (CEO) and other Executive Officers should be
compensated at levels designed to attract, motivate, and retain talented
Executives who are capable of leading the Company in achieving its business
objectives in an industry facing increasing complexity, competition, and change;
to encourage and reward excellent performance; and to encourage individual
growth as a part of the Company's management development program. Annual
compensation for the Company's senior management consists of salary, and for
certain key Executives, a long-term Incentive Compensation Plan.
Salary levels of Company Executives are reviewed and may be adjusted
annually. Salaries are also increased to recognize promotions and assignment of
increased responsibilities to the Company. In determining appropriate salaries,
the Committee considers: (1) the CEO's recommendations as to compensation for
all other Executive Officers; (2) the scope of responsibility, experience, time
in position, and individual performance for all Officers including the CEO; (3)
internal fairness and equity among positions held by each Executive Officer; (4)
special factors such as each individual's willingness and ability to accept
special assignments and responsibilities; (5) general cognizance of pay
practices of major companies within the St. Louis region as well as within the
utility industry generally relating to Executives of comparable responsibility;
and (6) corporate performance. Evaluation of corporate performance takes into
account the significant effects which weather variations as well as other
unusual events may have on the Company's earnings per share and other financial
and operating results as compared to corporate budgeted levels. The Committee's
analysis is a subjective process which utilizes no specific weighting or formula
of the aforementioned factors in determining Executives' base salaries.
Awards under the Company's long-term Incentive Compensation Plan are granted
by Committee recommendation and Board approval to certain key Executives
(including the CEO) who have, in the judgment of the Committee, demonstrated
great ability and who the Company seeks to retain in positions which can affect
the long-term success of the Company, including both the establishment and
execution of the Company's business strategies. Under this Plan, upon the
recommendation of the Compensation Committee, the Board of Directors, exclusive
of any employee Director who is eligible to participate in the Plan, may award
Share Units to these key Executives. The Executives are paid quarterly dividend
equivalents on these Share Units at the same rate that dividends are paid to
stockholders. Share Units also have a deferred compensation component based on
changes in the Company's retained earnings over the course of a year. Such
deferred compensation is payable upon the Executive's retirement. Current
compensation under this Plan is limited to 25% of the Executive's current annual
salary. In January 1995, the Board amended the Plan to add a requirement that an
Executive provide a certain number of additional years of service after the date
of an award of Share Units in order for post-retirement dividend equivalents and
deferred compensation amounts associated with that award to be paid. The
Committee expects that such amendment will encourage the continued employment of
these talented executives. This Plan provides compensation which is directly
14
<PAGE> 16
linked with earnings per share achievement, a critical factor in creating
increased shareholder value. Determination of the number of Share Units to award
to a key Executive is a subjective process which considers an individual's
current salary level, the number of Share Units previously awarded, as well as
expectations for the Executive's performance relative to maintaining the
long-term financial and operational integrity of the Company.
The compensation of all Executive Officers was considered and adjusted in
January 1995. Also, the Board of Directors, in recognition of the prior
performance and high level of responsibility of the CEO and five of the
Company's other Senior Officers, awarded new Share Units to them, as set forth
in greater detail elsewhere in this proxy statement. Such share unit awards are
intended, among other things, to relate a portion of executive compensation more
directly with the long-term interests of shareholders.
On September 1, 1995, certain Officers assumed substantially increased
responsibilities as part of a realignment of management assignments related to
the retirement of two Senior Officers. These further significant
responsibilities were recognized by additional salary increases which also
became effective on September 1, 1995.
In determining the total compensation package of the CEO for 1995, the
Compensation Committee considered all of the matters discussed above. The
Committee also considered the attainment of corporate-wide budgeted goals,
giving recognition to factors such as weather, interest rates and regulatory
policies which can significantly impact operating results of gas utilities but
are generally outside the control of management. Further, the Committee
considered subjective factors related to individual performance and
responsibility for the long-term strategic direction of the Company. Noted was
the CEO's leadership in: (1) the successful transition to the new gas supply
system mandated by the Federal Energy Regulatory Commission's restructuring of
the interstate pipeline industry; (2) the beneficial results of the settlement
reached in late 1994 of the rate proceeding before the Missouri Public Service
Commission; and (3) the early and successful conclusion of negotiations for a
new, three-year labor agreement between the Company and the Oil, Chemical and
Atomic Workers International Union, which represents almost three-fourths of the
Company's employees. In January 1995, the Board of Directors, in addition to
granting the CEO an increase in base salary, awarded the CEO 5,000 additional
Share Units under the Incentive Compensation Plan to recognize the factors and
accomplishments referred to above.
Compensation Committee
Boyd F. Schenk, Chairman
William E. Nasser
Robert P. Stupp
H. Edwin Trusheim
15
<PAGE> 17
PERFORMANCE GRAPH
The following Performance Graph compares the performance of the Company's
Common Stock to the Standard & Poor's 500 Stock Index and to the Standard &
Poor's Utilities Index for the Company's last five fiscal years. The graph
assumes that the value of the investment in the Company's Common Stock and each
index was $100 at September 30, 1990 and that all dividends were reinvested. The
information contained in this graph is not necessarily indicative of future
Company performance.
COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN
LACLEDE GAS COMPANY, S&P 500, AND S&P UTILITIES
[PERFORMANCE GRAPH]
FISCAL YEAR ENDED SEPTEMBER 30
<TABLE>
<CAPTION>
1990 1991 1992 1993 1994 1995
<S> <C> <C> <C> <C> <C> <C>
Laclede $100.00 $126.83 $143.58 $201.40 $180.66 $187.79
S&P 500 $100.00 $131.17 $145.66 $164.60 $170.66 $221.43
S&P Utilities $100.00 $115.87 $132.52 $164.89 $143.29 $182.82
</TABLE>
16
<PAGE> 18
COMPENSATION OF DIRECTORS
Directors who were not employees of the Company received a monthly retainer
fee of $1,250 per month during fiscal year 1995. Also, all Directors received a
fee of $1,000 for each Board meeting attended personally; and $500 for each
Board meeting attended via telephone conference call. Directors received fees of
$500 for each committee meeting attended personally; and $250 for each committee
meeting attended via telephone conference call. Each Chairman of a Committee of
the Board except for the Nominating Committee Chairman received an additional
$1,000 annual fee. All non-employee Directors are permitted to elect to defer
all or any part of their compensation under arrangements which apply equally to
all such non-employee Directors.
The Company has also established a retirement plan for each of its
non-employee Directors who serves at least five years as a Director or who dies
while serving as a Director. Pursuant to this plan, the eligible Director (the
``Participant''), or the Participant's designated beneficiary, would, following
the discontinuance of the Participant's service as a Director (or following the
Participant's attaining 65 years of age, if the Participant is not at least 65
years old at the time of such discontinuance of service), receive an annual
retirement payment amount equal to a percentage (the ``Applicable Percentage'')
of the annual Board retainer fee at the time of such Participant's
discontinuance of service. The Applicable Percentage shall be 10% for each of
the first ten years of service of such Participant as a Director. The annual
payments to the retired Participant shall continue until such Participant's
death, but if such Participant shall die before receiving at least ten annual
payments, then such Participant's designated beneficiary shall, during such
beneficiary's lifetime, receive the remainder of the first ten annual payments
which the deceased Participant would have received.
In 1990, the Company established the Restricted Stock Plan for Non-Employee
Directors, the term of which was extended to January 26, 2000. Under this Plan,
a grant of 800 restricted shares will be made on the date a person first begins
serving as a non-employee Director. Each non-employee
Director will receive an additional grant of 200 restricted shares on the date
of each subsequent Annual Meeting of Stockholders for services rendered by such
non-employee Director during the preceding year. Although a non-employee
Director is entitled to vote and may receive the dividends on the restricted
shares, the restricted shares are forfeitable until vested pursuant to a
schedule based upon the non-employee Director's years of participation in, and,
in some cases, age at time of entering, the Restricted Stock Plan. Under a Trust
Agreement between the Company and Boatmen's Trust Company, as Trustee, shares
granted pursuant to the Restricted Stock Plan are purchased on the open market
by the Trustee, and held in trust until vested in the non-employee Director. In
January 1995, Mr. Schenk received a grant of 200 vested shares; Ms. Krey and
Messrs. Craig, Givens, Holman, Nasser and Stupp each received a grant of 200
nonvested shares; and Mr. Trusheim received a grant of 100 vested and 100
non-vested shares.
17
<PAGE> 19
COMPLIANCE WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934
Section 16(a) of the Securities Exchange Act of 1934 requires the Company's
directors and executive officers, and persons who own more than ten percent of a
registered class of the Company's equity securities, to file reports of
ownership and reports of changes in ownership with the Securities and Exchange
Commission. Based upon a review of copies of the Section 16(a) forms filed and
other information received from the persons subject to the reporting
requirements, the Company believes all such persons filed the required reports
on a timely basis, except that J. G. Hofer, an officer of the Company, did not
timely report in fiscal year 1994 exempt acquisitions pursuant to the Company's
Dividend Reinvestment and Stock Purchase Plan (which occurred with respect to
three quarterly dividend reinvestments), involving an aggregate amount of
approximately 13 common shares of the Company, in which he disclaims any
beneficial ownership. An amendment to Mr. Hofer's Form 5 for the fiscal 1994
year has recently been filed.
PROPOSAL 2. APPOINTMENT OF AUDITORS
The Board of Directors, upon recommendation of its Audit Committee,
recommends that the stockholders ratify the appointment of Deloitte & Touche
LLP, Certified Public Accountants, to audit the accounts of the Company and its
subsidiaries for the fiscal year ending September 30, 1996. The vote of a
majority of the outstanding shares entitled to vote and represented in person or
by proxy will be necessary to effect the ratification described above. Thus, in
this context, the effect of an abstention will be the same as a negative vote.
Deloitte & Touche LLP is the successor to the firm that has acted as auditors of
the Company since 1953. It is expected that a representative of Deloitte &
Touche LLP will be present at the Annual Meeting, will have an opportunity to
make a statement if he or she desires to do so, and will be available to respond
to appropriate questions.
During fiscal year 1995, Deloitte & Touche LLP performed audit services
primarily related to the limited review of quarterly reports and the examination
of annual consolidated financial statements submitted to stockholders and the
Securities and Exchange Commission and the audit of the various employee benefit
plans of the Company.
YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE RATIFICATION
---
OF THE APPOINTMENT OF DELOITTE & TOUCHE AS INDEPENDENT AUDITORS.
OTHER MATTERS
The Board of Directors does not know of any matters to be presented at the
meeting other than those stated in this proxy statement. However, if other
matters related to the purpose of the meeting properly come before the meeting,
it is the intention of the persons named in the accompanying proxy to vote said
proxies on such other matters in accordance with their judgment.
18
<PAGE> 20
SOLICITATION OF PROXIES
Proxies will be solicited by mail. They may also be solicited by Officers
and regular employees of the Company, personally or by telephone or telegraph,
but such persons will not be specially compensated for such services. The firm
of Morrow & Co., Inc. has been retained to assist with the solicitation of
proxies at a cost of approximately $5,000. It is contemplated that brokerage
houses, custodians, nominees and fiduciaries will be requested to forward the
soliciting material to the beneficial owners of stock held of record by such
persons, and will be reimbursed for expenses incurred therein. The entire cost
of solicitation will be borne by the Company.
LACLEDE GAS COMPANY
By DONALD L. GODINER, Secretary
St. Louis, Missouri
December 26, 1995
19
<PAGE> 21
LACLEDE GAS
COMPANY
NOTICE OF
ANNUAL MEETING
OF STOCKHOLDERS
AND
PROXY STATEMENT
JANUARY 25, 1996
<PAGE> 22
LACLEDE GAS COMPANY
720 OLIVE STREET, ST. LOUIS, MISSOURI 63101
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints Donald L. Godiner, Robert C.
Jaudes, Gerald T. McNeive, Jr. and each of them, with or without
any of the others, attorneys and proxies, with full power of
substitution, to vote all of the shares of common stock in Laclede
Gas Company which the undersigned is entitled to vote at the Annual
Meeting of Stockholders of said corporation to be held at
Marriott's Pavilion Hotel, on Thursday, January 25, 1996, at 10:00
a.m. local time, and at any adjournment thereof: (1) as hereinafter
specified upon the proposals listed below and as more particularly
described in the Company's proxy statement, receipt of which is
hereby acknowledged; and (2) in their discretion upon such other
matters as may properly come before the Annual Meeting of
Stockholders.
A VOTE FOR THE FOLLOWING PROPOSALS IS RECOMMENDED BY THE BOARD.
---
1. ELECTION OF DIRECTORS: Richard E. Beumer, Robert C. Jaudes and
Robert P.Stupp.
/ / FOR all nominees listed. / / FOR all nominees listed except
_________________________________
_________________________________
/ / WITHHOLD AUTHORITY to vote for all nominees listed.
2. RATIFICATION OF THE SELECTION OF DELOITTE & TOUCHE as
independent auditors.
/ / FOR / / AGAINST / / ABSTAIN
(Continued and to be signed on reverse side.)
<PAGE> 23
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER
DIRECTED HEREIN BY THE UNDERSIGNED STOCKHOLDER. IF NO DIRECTION IS
MADE, THE PROXY WILL BE VOTED FOR PROPOSALS 1 AND 2.
Dated____________________________________, 19________
_________________________________
_________________________________
IMPORTANT: PLEASE DATE THIS PROXY
AND SIGN EXACTLY AS YOUR NAME(S)
APPEARS THEREON. IF STOCK IS HELD
JOINTLY, SIGNATURE SHOULD INCLUDE
BOTH NAMES. EXECUTORS,
ADMINISTRATORS, TRUSTEES,
GUARDIANS, AND OTHERS SIGNING IN
A REPRESENTATIVE CAPACITY SHOULD
SO INDICATE.
PROXY MUST BE RETURNED BY JANUARY 25, 1996
<PAGE> 24
APPENDIX
The information in the Performance Graph on page 16 of the definitive
proxy statement of Laclede Gas Company is depicted in the table that
immediately follows the graph.
