-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LAyQhBC/Py+9bZGPsXEi01QQIjKchs8uMMLXPHhSWG+Uk/15QU4PA2sbokDbJO61 +5jh09p4Tu2rxCeyxhSTfA== 0001009881-96-000033.txt : 19960731 0001009881-96-000033.hdr.sgml : 19960731 ACCESSION NUMBER: 0001009881-96-000033 CONFORMED SUBMISSION TYPE: PRRN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960730 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TEKTRONIX INC CENTRAL INDEX KEY: 0000096879 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 930343990 STATE OF INCORPORATION: OR FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: PRRN14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-04837 FILM NUMBER: 96600905 BUSINESS ADDRESS: STREET 1: 2660 SW PKWY CITY: WILSONVILLE STATE: OR ZIP: 97070 BUSINESS PHONE: 5036277111 MAIL ADDRESS: STREET 1: P O BOX 100 CITY: WILSONVILLE STATE: OR ZIP: 97070-1000 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: UNITED FOOD & COMMERCIAL WORKERS UNION LOCAL 99R CENTRAL INDEX KEY: 0001009881 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: PRRN14A BUSINESS ADDRESS: STREET 1: C/O DAVIS COWELL & BOWE STREET 2: 100 VAN NESS AVENUE 20TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94102 BUSINESS PHONE: 4156261880 MAIL ADDRESS: STREET 1: C/O DAVIS COWELL & BOWE STREET 2: 100 VAN NESS AVENUE 20TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94102 PRRN14A 1 SCHEDULE 14A SCHEDULE 14 INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant [ ] Filed by a Party other than the Registrant [ X ] Check the appropriate box: [ X ] Preliminary Proxy Statement [ ] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 Name of Registrant as Specified in Its Charter: Tektronix, Inc. Name of Person(s) Filing Proxy Statement: United Food & Commercial Workers Union, Local 99R 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: ____________________________________________________________ 2) Aggregate number of securities to which transaction applies: _____________________________________________________________ 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: (1) _____________________________________________________________ 4) Proposed maximum aggregate value of transaction: _____________________________________________________________ (1) 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: ____________________________ 2) Form, Schedule or Registration Statement No: ______________________________ 3) Filing Party: _________________________ Date Filed: _______________________________ Date first mailed: August 6, 1996 UFCW 99R 2501 W. Dunlap Ave. Phoenix AZ 85021 (602) 572-2149 INDEPENDENT SHAREHOLDER SOLICITATION FOR SHAREHOLDER PROPOSALS re: EMPLOYEE SEVERANCE POLICY , BOARD DECLASSIFICATION AND POISON PILL at TEKTRONIX, INC. Annual Stockholders Meeting September 26 , 1996, 10:00 a.m. Portland Hilton Hotel 921 S.W. 6th Portland, OR Dear Fellow Tektronix Shareholder: UFCW 99R urges you to vote FOR our shareholder proposals for (1) equal treatment of top executives and other employees as to severance arrangements, (2) annual election of all directors (declassifying the board), and (3) rescinding the poison pill. A. EQUAL JOB SECURITY FOR TOP MANAGEMENT AND REGULAR EMPLOYEES Tektronix top management enjoys written employment agreements guaranteeing them three years' salary plus benefits if terminated within two years of any change in control of the company (unless the executive engages in serious willful misconduct). The officers also have another severance plan for situations other than change-in-control: if terminated for anything less than serious willful misconduct, they will receive one years' pay and benefits and outplacement assistance (for Mr. Meyer, it is two years' worth). We believe regular employees of Tektronix should receive no less protection from job loss than top management receives. In our view, this is the best way for the company to ensure high employee morale and productivity: to keep employees focused on doing a good job, not looking for a better job. We urge your vote for the following proposal: RESOLVED, that shareholders recommend that the Company provide senior executives with no greater protection from discharge than is provided all long-term employees of the Company. "Protection from discharge" means the number of months of severance pay and contractual commitments as to just cause for termination or as to duration of employment. "Long-term employees" here means all employees with more than two years' service to the company. When we asked management to tell us what severance protection is currently provided employees other than top officers, all it said was that severance for "layoff, downsizing or the like" for the rank-and-file was "very competitive". Note that management's package goes beyond downsizing: severance is paid for discharges for all sorts of reasons so long as these do not amount to the "willful engaging by executive in illegal conduct which is materially and demonstrably injurious to Tektronix" or "the willful and continued failure by Executive to perform substantially Executive's reasonably assigned duties... after a demand for substantial performance is delivered to the Executive." Even "willful" is narrowly defined by these executive agreements: "no act, or failure to act, on Executive's part shall be considered 'willful' unless done, or omitted to be done, by Executive in knowing bad faith and without reasonable belief that Executive's action or omission was in, or not opposed to, the best interests of Tektronix." Some company boards defend superior severance benefits for executives by claiming these executives are more valuable than other employees. If that is true, this is more than amply recognized through higher salary, bonuses and other benefits, in our view. For example, CEO Meyer received $1______ in cash compensation in 1996. In 1995 he received $1,583, 138, plus another $ 1,220,174 in long-term compensation (increased value of restricted stock awarded in 1993). We feel all employees are essential to the Company's profitability, given that research and development are important elements in the Company's business. We believe that as a matter of human dignity, no employee deserves to live in fear of tomorrow being plunged into poverty by being fired without warning. The job security we call for is not radical: nearly all collective bargaining agreements negotiated by unions in this country require just cause for discharge. Many provide severance pay in downsizing situations. We obviously are not proposing that every employee receive the same amount of money promised executives in severance pay. We simply believe long-term employees should not be left with a few weeks' pay when top executives receive 3 years' worth. Also, we feel company severance policy should consistently discourage terminations for less than serious offenses, regardless of whether the person terminated is an officer. Some shareholders may want their company to be able to fire anyone at any time without having to show a good reason or pay severance. If so, this could still be the rule under our proposal. Our proposal simply says the rule should be the same for top management as for the rest of the workforce. In our view, employee morale would benefit simply from having the same standard applied to all employees, top to bottom. B. PROPOSAL FOR ANNUAL ELECTION OF ALL DIRECTORS (BOARD DECLASSIFICATION) Until a decade ago, the Company elected all its directors annually. Then the Company switched to a "classified" board, meaning only one-third of the directors are up for election each year. Several companies recently abandoned classified boards under pressure from large shareholder votes in favor of declassification: Yellow Freight, Ameritech, Mead Paper and Union Pacific. A majority of shareholders in at least 8 companies voted in favor of board declassification in 1995-96. The Investor Responsibility Research Center reports that shareholder declassification proposals in 1995 came to a vote at 65 companies and received an average 39.1 percent support despite management opposition. We propose as follows: RESOLVED, that the shareholders hereby amend the Company's bylaws to have annual election of all directors instead of the current staggered board elections. Article II, section 2 of the bylaws shall be amended to read: "The number of directors of the corporation shall be eleven, who shall be elected at each annual meeting of shareholders and serve one-year terms and until their successors are elected and qualified. This provision of the bylaws may not be amended by the board without a vote of the shareholders." In our view, a classified board is unfair to shareholders: even if all shareholders agree that the current directors must go, it might take three annual meetings (and three proxy contests) to vote them out. We feel board declassification will make directors more responsive to shareholder interests. C. PROPOSAL TO ELIMINATE THE POISON PILL ABSENT SHAREHOLDER APPROVAL Tektronix has a poison pill which allows management to dilute the value of a large block of stock acquired by someone without management's blessing. The Board adopted this pill without a shareholder vote. In our opinion, a shareholder's right to sell his stock should include the right to sell it to whomever he wishes without interference from management in the form of a pill. Oregon corporation law might allow instant replacement if shareholders voted to declassify the board at the same time as they voted for a whole new board, and the incumbent directors could not prevail on a claim their 3-year terms were contractual and irrevocable, nor on a claim that there must first be a declassification vote before there can be a valid vote for all seats. Also, if another corporation acquired over 90 percent of Tektronix stock, it could merge Tektronix into itself and thereby gain control over the board immediately. Proposals against poison pills in 1996 received majority shareholder support at Weyerhauser, Fleming, Supervalu, and Ryder (despite management opposition). Consolidated Freight ended its pill in the face of likely shareholder approval of a similar proposal. We urge your vote for the following proposal: RESOLVED, that shareholders recommend the Company not use a "poison pill" (its current "shareholder rights" plan, or any replacement thereof) unless the pill has first been submitted to shareholders and approved by a majority of shares voted. The pill here is a "right" attached to each common share. It is triggered by a person or group commencing a tender offer to acquire more than 20 percent of the stock, or more than 10% without board support. Each "right" allows its holder (other than the tender offeror) to purchase company stock or other property having a value of twice the right's exercise price. Most European companies do not have such pills. In Canada, shareholder approval is sought before such a pill is put in place. We feel shareholders should be allowed to decide for themselves whether an offer for their stock is fair or not. VOTING PROCEDURE AND VOTING RIGHTS OPTION A: You can vote on these proposals using the card you already received from management, or by using the enclosed card. __________________________ OPTION B: Management has not included these proposals on the card it previously sent you. If you return that card, management may claim the right to vote your shares as it sees fit on these proposals. In order to vote your shares directly, you need to use the enclosed card, vote at the meeting, or use a revised card from management (if it chooses to revise to allow you to direct its vote on these proposals). _______________________________ If you have already voted, you can change your vote simply by executing a new proxy card: only the latest-dated card counts. Executing our card grants us no discretionary authority: if matters not listed therein come before the meeting (which is not anticipated; advance notice is required by the bylaws), we will not vote your shares on such matters. If you sign the card but do not tell us how to vote, we will vote for the proposals and not vote in the directors election. You may revoke a proxy vote any time before the tally by (1) executing a later proxy card; (2) appearing at the meeting to vote, or (3) delivering the proxyholder or the Company's secretary written notice of revocation prior to the date of the meeting. The company headquarters is 26600 S.W. Parkway, Wilsonville, OR 97070, Tel. (503) 627-7111. Employees who own stock through the 401K Plan are entitled to give confidential directions to the Plan Trustee as to how to vote the stock allocated to the employee's account. Our counsel advises that retaliation against any employee based on their vote would be a serious violation of federal law. We will keep the content of all cards we receive confidential from everyone except our staff, except that at the meeting the cards received from record owners must be presented to the company's tabulator in order to be counted. Our staff will keep confidential any information on cards or surveys which identify you (this information will be used solely to confirm the validity of the card/survey and to communicate regarding shareholder voting issues). Approval of the proposals requires a vote of the majority of the shares represented at the meeting. All holders of common stock as of ____1996 will be entitled to vote. The proposals on poison pills and severance pay are recommendations and would not bind the company; the declassification proposal would be a binding bylaw amendment. SOLICITATION The costs of this solicitation are being borne by United Food & Commercial Workers Local 99R, which owns 25 shares of company common stock. We expect to spend about $1000. We represent employees in the retail food industry, including one Albertson's store, and are organizing other Albertson's stores over management opposition in what we feel are improper forms. Tektronix director Gary Ames is also a director of Albertson's. We have made shareholders proposals at other companies connected to Albertsons through their boards. Regardless of the outcome of this labor situation, we will present the proposals and your proxy cards at the Tektronix meeting. PROPOSALS FOR FUTURE MEETINGS Shareholders who have owned more than $1000 worth of the company's stock more than one year have the right under SEC Rule 14a-8 to have the company's proxy statement include a shareholder proposal and supporting statement. The deadline for submitting such proposals for inclusion in the Company's 1997 proxy statement is __________, 1997. EXECUTIVE COMPENSATION/SECURITY OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS/ELECTION OF DIRECTORS We incorporate herein the information on these subjects contained in management's proxy statement. We make no recommendation on the directors election. PLEASE VOTE FOR OUR PROPOSALS FOR BOARD DECLASSIFICATION, FOR PUTTING THE POISON PILL UNDER SHAREHOLDER CONTROL, AND FOR EQUAL TREATMENT OF COMPANY EMPLOYEES AS TO SEVERANCE POLICY Sincerely, William McDonough President UFCW 99R PLEASE RETURN THE ENCLOSED PROXY CARD AND SURVEY TO: UFCW 99R 2501 W. Dunlap Avenue Phoenix AZ 85021 UFCW 99R SURVEY OF TEKTRONIX SHAREHOLDER OPINION [this is a voluntary survey, not a proxy] 1. Should top management enjoy job security arrangements which are not extended to other employees in the company? * Yes [ ] No [ ] Undecided [ ] 2. Do you support the idea of annual election of all directors? Yes [ ] No [ ] Undecided [ ] * 3. Should the company have a poison pill plan without prior shareholder approval? * Yes [ ] No [ ] Undecided [ ] 4. What is your favorite thing about the Company? _________________________________________________________ 6. What is the worst thing about the Company? ____________________________________________________________ *(If you want to vote on the proposals concerning these issues , you need to use a separate proxy card or vote in person at the shareholders meeting.) 7. List anything you would like management to change: THE FOLLOWING INFORMATION WILL BE KEPT CONFIDENTIAL: Name ______________________________________ Title, if any _______________________________________________ Address _________________________________________________________________ _____________________________ Phone ______________________ Fax ____________________ # of Shares owned ____________________ Record Owner name and address (if not above): Return to: UFCW 99R, 2501 W. Dunlap Ave., Phoenix AZ 85021 PROXY SOLICITED BY UFCW 99R for ANNUAL MEETING OF SHAREHOLDERS of TEKTRONIX INC. Sept. 21, 1996 The undersigned shareholder hereby appoints William McDonough proxy with full power of substitution to vote for the undersigned at the Tektronix, Inc. annual meeting, and at any adjournments thereof, as directed below. The undersigned grants no discretionary authority. (1) ELECTION OF DIRECTORS Nominees: P. E. Bragdon, A.G. Ames, P.C. Ely, Jr. FOR all nominees: [ ] WITHHOLD from all nominees [ ] FOR all nominees except: ____________________________ (2) PROPOSAL RECOMMENDING OFFICERS RECEIVE NO MORE FAVORABLE SEVERANCE PROTECTION THAN OTHER LONG-TERM EMPLOYEES FOR [ ] AGAINST [ ] ABSTAIN [ ] (3) PROPOSAL TO DECLASSIFY THE BOARD OF DIRECTORS (annual election of all directors) FOR [ ] AGAINST [ ] ABSTAIN [ ] (4) PROPOSAL FOR SHAREHOLDER REVIEW OF POISON PILL PLAN FOR [ ] AGAINST [ ] ABSTAIN [ ] PLEASE DATE, SIGN AND PROMPTLY MAIL IN THE SELF-ADDRESSED ENVELOPE. PERSONS SIGNING IN REPRESENTATIVE CAPACITY SHOULD INDICATE AS SUCH. IF SHARES ARE HELD JOINTLY, BOTH OWNERS SHOULD SIGN. SIGNATURE[s] ___________________________________________ DATE __________ PRINT NAME/TITLE________________________________________ ADDRESS____________________________________________________ ________________________ ___________ ________________ ACCOUNT NO. # OF SHARES PHONE NO. FAX NO. IMPORTANT: IF YOUR STOCK IS HELD IN THE NAME OF A BANK, BROKER OR OTHER NOMINEE , PLEASE LIST THE NAME AND ADDRESS OF THE RECORD OWNER !!! CONFIDENTIAL VOTING DIRECTION TO THE 401(k) PLAN TRUSTEE: SOLICITED BY UFCW 99R for ANNUAL MEETING OF SHAREHOLDERS of TEKTRONIX INC. Sept. 21, 1996 The undersigned shareholder hereby directs the Tektronix 401(k) Plan Trustee and any proxies thereof to vote the shares of stock allocated to the undersigned's account with the 401K Plan as follows: (1) ELECTION OF DIRECTORS Nominees: P. E. Bragdon, A.G. Ames, P.C. Ely, Jr. FOR all nominees: [ ] WITHHOLD from all nominees [ ] FOR all nominees except: ____________________________ (2) PROPOSAL RECOMMENDING OFFICERS RECEIVE NO MORE FAVORABLE SEVERANCE PROTECTION THAN OTHER LONG-TERM EMPLOYEES FOR [ ] AGAINST [ ] ABSTAIN [ ] (3) PROPOSAL TO DECLASSIFY THE BOARD OF DIRECTORS (annual election of all directors) FOR [ ] AGAINST [ ] ABSTAIN [ ] (4) PROPOSAL FOR SHAREHOLDER REVIEW OF POISON PILL PLAN FOR [ ] AGAINST [ ] ABSTAIN [ ] PLEASE DATE, SIGN AND MAIL DIRECTLY TO PLAN TRUSTEE OR TO UFCW 99 (UFCW 99 MUST RECEIVE TWO DAYS BEFORE TRUSTEE'S DEADLINE). SIGNATURE[s] ___________________________________________ DATE __________ PRINT NAME______________________________ ADDRESS________________________________ TEL. NOS. (W_____________________(H)__________________ _______________________________ Account No. (or Soc. Sec. No. -- used solely to ensure your vote gets counted) -----END PRIVACY-ENHANCED MESSAGE-----