Rli Corp PRE 14A, filed Mar 10, 2023

Rli Corp (RLI)

PRE 14A 2023-03-10

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⌧	Preliminary Proxy Statement
◻	Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)
◻	Definitive Proxy Statement
◻	Definitive Additional Materials
◻	Soliciting Material Pursuant to Section 24 0.14a-12


Payment of Filing Fee (Check the appropriate box):
⌧	No fee required

◻	Fee paid previously with preliminary materials.

◻	Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11


PROXY SUMMARY	4
GENERAL INFORMATION	10
Voting and Quorum	10
Shareholders Entitled to Vote	11
Votes Required to Approve the Proposals	11
Attending the Virtual Annual Meeting	11
Proxy Solicitation	12
Electronic Access to Proxy Materials and Annual Report to Shareholders	12
SHARE OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT	13
Principal Shareholders	13
Directors and Officers	14
PROPOSAL ONE: ELECTION OF DIRECTORS	15
General	15
Nominees	15
Director Nominee Information	16
CORPORATE GOVERNANCE AND BOARD MATTERS	21
Corporate Governance Principles	21
Director Orientation and Continuing Education	21
Director Independence	21
Board Independence Status	23
Director Evaluation Process	23
Director Nominations	24
Code of Conduct	24
Hedging and Pledging Policy	24
Shareholder and Interested Parties Communications	25
Company Policy on Related Party Transactions	25
Certain Relationships and Related Party Transactions	25
BOARD’S ROLE IN RISK OVERSIGHT	26
Cybersecurity Risk Management	26
COMMITTEES OF THE BOARD OF DIRECTORS	27
Committee Membership	27
Audit Committee	28
Human Capital & Compensation Committee	28
Finance & Investment Committee	29
Nominating & Corporate Governance Committee	29
Strategy & Risk Committee	29
BOARD MEETINGS AND COMPENSATION	30
Meetings	30
2022 Director Compensation	30
Nonemployee Director Deferred Compensation Plan	31
Director Share Ownership	32
Board Leadership Structure	32
Delinquent Section 16(a) Reports	32
PROPOSAL TWO: NON-BINDING, ADVISORY VOTE TO APPROVE THE COMPENSATION OF THE COMPANY’S NAMED EXECUTIVE OFFICERS	33
EXECUTIVE MANAGEMENT	34
Information About Our Executive Officers	34
HUMAN CAPITAL & COMPENSATION COMMITTEE REPORT	34
Members of the Human Capital & Compensation Committee	34
COMPENSATION DISCUSSION & ANALYSIS	35
Introduction	35

Executive Summary	35
Key Attributes of RLI Executive Compensation	36
HOW THE HCCC OPERATES	36
HCCC Responsibilities	36
HCCC Meetings	36
Response to 2022 Say-on-Pay Vote	36
Input from Management	37
Compensation Consultant	37
Market Data	37
OVERVIEW OF RLI EXECUTIVE COMPENSATION	38
Objectives	38
Elements of Company Executive Compensation	38
Balance of Short-Term and Long-Term Compensation	38
Market Value Potential Incentive Program — General	39
ANNUAL COMPENSATION	41
Base Salary	41
Market Value Potential Executive Incentive Program — Annual Incentive Compensation Component	41
Management Incentive Program	42
Underwriter Profit-Sharing Program – Annual Incentive Compensation Component	43
LONG-TERM COMPENSATION	43
Market Value Potential Executive Incentive Program — Long-Term Incentive Compensation Component and Forfeiture Provisions (Clawback)	43
Underwriter Profit-Sharing Program – Long-Term Incentive Compensation Component	44
Long-Term Incentive Plan	45
Employee Stock Ownership Plan	45
401(k) Plan	46
Deferred Compensation Plan	46
Stock Ownership/Retention Guideline	46
EXECUTIVE COMPENSATION	47
2022 Summary Compensation Table	47
2022 Grants of Plan-Based Awards	48
Outstanding Equity Awards at 2021 Fiscal Year-End	50
2022 Option Exercises and Stock Vested	50
2022 Non-Qualified Deferred Compensation	51
Elements of Post-Termination Compensation and Benefits	52
RATIO OF CEO TO MEDIAN EMPLOYEE TOTAL COMPENSATION	53
PAY FOR PERFORMANCE	54
SAFEGUARDS AGAINST UNNECESSARY OR EXCESSIVE COMPENSATION RISK	57
Senior Management Compensation	57
Underwriting Compensation	58
Investment Practices	58
Employee and Executive Equity Ownership	58

EQUITY COMPENSATION PLAN INFORMATION	59
PROPOSAL THREE: APPROVAL OF THE AMENDMENT TO THE COMPANY’S CERTIFICATE OF INCORPORATION TO INCLUDE THE EXCULPATION OF OFFICERS	59
PROPOSAL FOUR: APPROVAL OF THE 2023 RLI LONG-TERM INCENTIVE PLAN	61
Equity Grant Practices	61
Dilution	61
Burn Rate	61
Certain Features of the 2023 LTIP	61
Purposes of the 2023 LTIP	62
Description of the 2023 LTIP	62
Administration	62
Available Shares	63
Change in Control	63
No Repricing	64
Clawback of Awards	64
Effective Date, Termination and Amendment	64
Eligibility	64
Non-Employee Director Compensation Limit	64
Minimum Vesting Conditions	64
Stock Options and SARS	64
Stock Awards	65
Performance Awards	68
Performance Measures	66
New Plan Benefits	67
Federal Income Tax Consequences	67
Section 162(m) of the Internal Revenue Code	67
Stock Options	67
SARS	68
Stock Awards	68
Performance Awards	68
PROPOSAL FIVE: RATIFICATION OF THE SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	69
AUDIT COMMITTEE REPORT	69
Members of the Audit Committee	70
FEES PAID TO THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	71
SHAREHOLDER PROPOSALS	71
OTHER BUSINESS	71
INVESTOR INFORMATION	72
Annual Shareholders Meeting	72
Internet Voting	72
Shareholder Inquiries	72
Requests for Additional Information	72
Multiple Shareholders Having the Same Address	72
Contacting RLI	72
RLI on the Web	72
EXHIBIT A: AMENDED AND RESTATED CERTIFICATE OF INCORPORATION	73
EXHIBIT B: 2023 RLI CORP. LONG-TERM INCENTIVE PLAN	75

	By Order of the Board of Directors


	Jeffrey D. Fick
	Chief Legal Officer & Corporate Secretary


	Board
	Recommendation	Page

PROPOSAL 1: Election of Directors	FOR	15

PROPOSAL 2: Non-Binding, Advisory Vote to Approve the Compensation of the Company’s Named Executive Officers	FOR	33

PROPOSAL 3: Approval of Amendment to the Company’s Certificate of Incorporation to Include the Exculpation of Officers	FOR	56

PROPOSAL 4: Approval of the 2023 RLI Corp. Long-Term Incentive Plan	FOR	61

PROPOSAL 5: Ratification of the Selection of Independent Registered Public Accounting Firm	FOR	69

	Kaj Ahlmann	Michael Angelina	David Duclos	Susan Fleming	Jordan Graham	Paul Medini	Jonathan Michael	Craig Kliethermes	Robert Restrepo	Debbie Roberts	Michael Stone
Legal, Regulatory, or Government		●						●	●		●
Strategy formulation and planning	●	●	●	●	●		●	●	●	●	●
Accounting	●					●	●			●
Audit	●	●				●	●			●
Private equity/venture capital	●			●	●
Brand & Marketing	●		●							●
M&A / Corporate Development	●		●	●	●	●			●		●
Investments & Capital Markets				●	●		●				●
Internet / Digital & Social Media					●
Insurance Industry Expertise	●	●	●	●	●	●	●	●	●		●
Information technology					●
Human Resources / Compensation			●	●				●	●
C-Suite / Executive Management	●	●	●		●	●	●	●	●	●	●
Risk Management	●	●	●				●	●	●		●
Academia & Education		●		●
Actuarial	●	●						●
Demographics
Race/Ethnicity
African American										●
White / Caucasian	●	●	●	●	●	●	●	●	●		●
Gender
Male	●	●	●		●	●	●	●	●		●
Female				●						●
Board Tenure
Years	13	9	5	4	18	0	25	2	6	4	10

OUR BUSINESS MODEL:
RLI is a domestic, specialty insurance company that does its own underwriting.


● We hire experienced, entrepreneurial underwriters	● Underwriting leadership compensation is tied directly to underwriting profit	● Our products are run like stand-alone businesses	● Organic product growth

● We focus on difficult markets that require unique expertise		● Diversification reduces corporate risk	● Talent acquisition & start-ups

● Strong feedback loop between underwriting and claims	● 91% Institutions & other public investors ● 9% Insiders & Employee Stock Ownership Plan “(ESOP”)	● Many products are convenient and tailored to fill a void in the market	● Acquisitions



OUR STRATEGY:
From our niche product offerings to our business model, our culture to our results — we’re different.

We aspire to:
● Be a premier specialty underwriting company that achieves long-term industry leading combined ratios and book value growth. ● Remain a destination for talented, entrepreneurial underwriters with ‘narrow & deep’ expertise. ● Seek out difficult markets while maintaining a highly diverse product portfolio. ● Emphasize profit maximization and enhance our ability to grow over the long term, with a focus on organic opportunities and acquisitions that preserve the unique culture that has made RLI successful.



Gross Premiums Written (in millions) $1,565 Compared to $1,347 million in the previous year		Comprehensive Earnings (in millions) $304.5 Compared to $220.5 million in the previous year



Combined Ratio 84.4 27^th consecutive year below 100		Net Cash Flow from Operations (in millions) $250.4 Compared to $384.9 million in the previous year



Regular / Special Dividend Per Share Paid in 2022 $1.03 / $7.00 47 years of paying and increasing regular dividends		Book Value per Share at December 31 $25.89 25% increase from year-end 2021, inclusive of dividends


AM Best A+ (Superior)		Standard & Poor’s A (Strong)



Moody’s A2		Ward’s 50® Top P&C Performer 32 Consecutive Years One of two companies named every year since inception

Proposal	Voting Options	Vote Required to Approve the Proposal	Effect of Abstentions	Effect of “Broker Non-Votes”
Election of Directors	For, against, or abstain on each nominee	Majority of votes cast	No effect.	No effect. No broker discretion to vote.
Say-on-Pay	For, against, or abstain	Majority of votes cast	No effect	No effect. No broker discretion to vote.
Approve Amendment to the Company’s Certificate of Incorporation to Include Exculpation of Officers	For, against, or abstain	Majority of shares outstanding	Counted as vote. Same effect as votes against.	Same effect as a vote against. No broker discretion to vote.
Approve 2023 Long-Tern Incentive Plan	For, against, or abstain	Majority of votes cast	No effect.	No effect. No broker discretion to vote.
Ratify selection of Deloitte & Touche LLP	For, against, or abstain	Majority of votes cast	No effect.	Brokers have discretion to vote.



Name and Address	Number of Shares	Percent of Outstanding
of Beneficial Owner	Beneficially Owned	Common Stock
The Vanguard Group, Inc.⁽¹⁾	4,781,024	10.54%
100 Vanguard Boulevard
Malvern, Pennsylvania 19355

BlackRock, Inc.⁽²⁾	4,771,661	10.50%
55 East 52nd Street
New York, New York 10055

State Street Corporation ⁽³⁾	4,639,518	10.22%
State Street Financial Center
One Lincoln Street
Boston, Massachusetts 02111

Kayne Anderson Rudnick Investment Management LLC ⁽⁴⁾	2,846,623	6.27%
1800 Avenue of the Stars
2nd Floor
Los Angeles, CA 90067



Name of Individual or	Number of Shares	Percent of Outstanding
Number of Persons in Group	Beneficially Owned ⁽¹⁾	Common Stock
Kaj Ahlmann ^{(2) (3)}	13,372	*
Michael E. Angelina^{(2) (3)}	19,753	*
John T. Baily^{(2) (3) (4)}	88,130	*
Todd W. Bryant ^{(5) (8)}	81,360	*
Aaron P. Diefenthaler ^{(5) (6) (7)}	76,699	*
David B. Duclos ^{(2) (3)}	8,098	*
Jeffrey D. Fick^{(5) (7)}	102,980	*
Susan S. Fleming ^{(2) (3)}	8,322	*
Jordan W. Graham^{(2) (3)}	58,581	*
Craig W. Kliethermes^{(5) (6) (7)}	122,711	*
Jennifer L. Klobnak ^{(5) (7)}	108,159	*
Paul B. Medini ^{(2) (8)}	594	*
Jonathan E. Michael^{(5) (6) (7) (9)}	1,294,559	2.8%
Robert P. Restrepo, Jr. ⁽³⁾	12,338	*
Debbie S. Roberts ^{(2) (3)}	8,371	*
Michael J. Stone^{(3) (10)}	222,243	*

Directors and executive officers as a group (17 persons) ^{(5) (6) (7) (8)}	2,288,686	5.00%

Director	Independent	Management
Kaj Ahlmann	●
Michael E. Angelina	●
John T. Baily ⁽¹⁾	●
Calvin G. Butler, Jr. ⁽²⁾	●
David B. Duclos	●
Susan S. Fleming	●
Jordan W. Graham	●
Craig W. Kliethermes		●
Paul B. Medini	●
Jonathan E. Michael		●
Robert P. Restrepo, Jr.	●
Debbie S. Roberts	●
Michael J. Stone	●

Board Committee	Areas of ERM oversight
Strategy & Risk	Overall ERM oversight Underwriting Information Technology Growth Insurance markets
Human Capital & Compensation	Talent development Management succession Culture Compensation and benefits
Finance & Investment	Investment Capital
Nominating & Corporate Governance	Environmental, social and governance matters Regulatory and legislative
Audit	Catastrophe exposure – including climate change Reserving Reinsurance Business Continuity Cybersecurity Third Party Management



Annual Board Retainer:	$	80,000
Restricted Stock Units:	$	75,000
Annual Committee Retainer:
Audit	$	15,000
All Other Committees	$	10,000
Lead Director Retainer:	$	20,000
Additional Annual Committee Chair Retainer:
Audit	$	20,000
Human Capital & Compensation	$	20,000
All Other Committees	$	10,000



					Change in
					Pension
					Value and
				Non-Equity	Nonqualified
	Fees Earned			Incentive Plan	Deferred	All Other
	or Paid in	Stock	Option	Compensation	Compensation	Compensation
Name	Cash ($)⁽¹⁾	Awards ($)⁽²⁾	Awards ($)	($)	Earnings	($)	Total ($)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)
Kaj Ahlmann	105,000	74,974					179,974
Michael E. Angelina	125,000	74,974					199,974
John T. Baily	135,000	74,974					209,974
Calvin G. Butler, Jr.	105,000	74,974					179,974
David B. Duclos	120,000	74,974					194,974
Susan S. Fleming	100,000	74,974					174,974
Jordan W. Graham	110,000	74,974					184,974
Paul B. Medini ⁽³⁾	17,500	74,868					92,368
Robert P. Restrepo, Jr.	100,000	74,974					174,974
Debbie S. Roberts	100,000	74,974					174,974
Michael J. Stone	110,000	74,974					184,974


Name	Age	Position with Company	Executive Officer Since
Craig W. Kliethermes ⁽¹⁾	58	President & Chief Executive Officer	2007
Todd W. Bryant ⁽²⁾	54	Chief Financial Officer	2009
Jennifer L. Klobnak ⁽³⁾	51	Chief Operating Officer	2016
Aaron P. Diefenthaler	49	Chief Investment Officer & Treasurer	2012
Jeffrey D. Fick ⁽⁴⁾	62	Chief Legal Officer & Corporate Secretary	2016
Seth A. Davis ⁽⁵⁾	51	Vice President, Controller	2019



Our Results in 2022:	2022	2021
Gross Premiums Written:	$1.57 billion	$1.35 billion
Operating Earnings*	$233.7 million	$177.1 million
(Net Earnings minus Realized Gains and Unrealized Gains (Losses) on Equity Securities Net of Tax)
Combined Ratio	84.4	86.8
(Net Loss and Operating Expense/Net Premiums Earned)
Operating Return on Equity	19.2%	15.6%
(Operating Earnings/Shareholders' Equity)
Market Value Potential (MVP)	$61.1 million	$240.6 million
(After Tax Returns Above Cost of Capital)
Five-Year Growth in Book Value: Rank Among Peer Companies	3/14	2/13


Performance Metric	Price/Book	Return on Equity	Combined Ratio	One-Year TSR	Three-Year TSR	Five-Year TSR
RLI Rank	2	2	2	8	3	3



	Short-Term as % of Total Compensation	Long-Term as % of Total Compensation
	(Salary and Annual Incentive Earned	(Payment from Bonus Bank for Prior Years and
Name	and Paid in 2023)	Grant Date Fair Value of Stock Options Awarded)
Craig W. Kliethermes	27%	73%
Todd W. Bryant	31%	69%
Jennifer L. Klobnak	30%	70%
Aaron P. Diefenthaler ^{(1) (2)}	50%	50%
Jeffrey D. Fick ⁽¹⁾	68%	32%



	(A)		(B)	(C = A x B)		(D = C x 20%)		(E = % Achieved)	(F = D x E)
	2022 MVP		Percentage	2022 Preliminary		20% Annual Component		Achievement	2022 Annual
Participant	Created		Award	MVP Award		Based on Strategic Goals		Rating	Incentive Award
C. Kliethermes	$	61,080,000	2.0%	$	1,221,600	$	244,320	97%	$	236,990
T. Bryant	$	61,080,000	1.0%	$	610,800	$	122,160	97%	$	118,495
J. Klobnak	$	61,080,000	1.15%	$	702,420	$	140,484	97%	$	136,269



	Payout Range
Management Incentive Plan Goals	0% Payout	100% Payout	Bonus Opportunity
STRATEGIC GOALS
Annual Objectives	0% achievement	100% achievement	22.50%
FINANCIAL GOALS
Operating Return on Equity (ROE)	7%	16%	22.50%
Market Value Potential (MVP)	$0	$100M	22.50%
Combined Ratio	100%	85%	22.50%
			MAXIMUM BONUS
			90.00%



									Actual
	MIP						Actual		Strategy			Total
	Level	Actual	Bonus	Actual			Combined		Scorecard		Total	MIP
Participant	%	ROE %	%	MVP		Bonus %	Ratio	Bonus %	%	Bonus %	MIP %	Bonus
Aaron P. Diefenthaler	90	19.2	22.5	$	61,080,000	13.748	84.4	22.5	97	21.825	80.573	$	273,948
Jeffrey D. Fick	90	19.2	22.5	$	61,080,000	13.748	84.4	22.5	97	21.825	80.573	$	290,063



Relative Performance		Adjustment
90^th percentile of peers or greater		125% (maximum)
60^th percentile of peers		100% (target)
33^rd percentile of peers or less		80% (minimum)
Results between the stated values for relative performance will be interpolated to determine the achievement rating.


2022 MVP Program Incentive Awards and Payouts
Annual Objectives Achieved		97.0	%
Peer Company Adjustment Factor		120.51	%
		(A)
2022 MVP Achieved (after tax)	$	61,080,000



Formula for
2022 MVP Award:	(B)		(C = A x B)	(D = C x 20%)	(E = D x % Achieved)	(F = C x 80%)	(G = F x Peer Factor)
				Annual	Annual		Financial
			Preliminary	Objectives	Objectives	Financial	Award
Participant	MVP %		MVP Award ($)	Component ($)	Award ($)	Component ($)	($)
Craig W. Kliethermes	2.0	%	1,221,600	244,320	236,990	977,280	1,177,720
Todd W. Bryant	1.0	%	610,800	122,160	118,495	488,640	588,860
Jennifer L. Klobnak	1.15	%	702,420	140,484	136,269	561,936	677,189



Formula for 2022
Payout from MVP Bank:	(H)	(G) (from above)	(I = G + H)	(J = I x 33%)	(K = I - J)
	Beginning Bank	2022 Award	Total Pre-payout	Payout	Remaining
Participant	Balance ($) ⁽¹⁾	Credited to Bank ($)	Balance ($)	of Bank ($)	At-Risk Bank
Craig W. Kliethermes	5,721,010	1,177,720	6,898,730	2,276,581	4,622,149
Todd W. Bryant	2,412,844	588,860	3,001,704	990,562	2,011,142
Jennifer L. Klobnak	3,074,831	677,189	3,752,020	1,238,167	2,513,853



Formula for Total
2022 MVP Payout:		(E) (from above)
	(J) (from above)	Payout of 2022	(L = J + E)
	Payout	Annual Objectives	Total 2022
Participant	of Bank ($)	Component ($)	Payout ($)
Craig W. Kliethermes	2,276,581	236,990	2,513,571
Todd W. Bryant	990,562	118,495	1,109,057
Jennifer L. Klobnak	1,238,167	136,269	1,374,436



Position		$Value of Shares
Chief Executive Officer		6.0 x Base Salary
Chief Operating Officer		4.0 x Base Salary
Chief Financial Officer		3.0 x Base Salary
Chief Legal Officer, Chief Investment Officer, Sr. VP		2.0 x Base Salary
Vice President		1.5 x Base Salary



							Change in Pension
							Value and
						Non-Equity	Nonqualified
				Stock	Option	Incentive Plan	Deferred	All Other
Name and			Bonus	Awards	Awards	Compensation	Compensation	Compensation
Principal Position	Year	Salary ($)	($)	($)	($) ⁽¹⁾	($) ⁽²⁾	Earnings ($)	($) ^(3)(4)(5)	Total ($)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)	(i)	(j)
Craig W. Kliethermes	2022	648,942	0	0	1,603,500	2,513,571	—	80,767	4,846,780
President & Chief Executive Officer	2021	538,000	0	0	499,240	3,704,994	—	61,197	4,803,431
	2020	525,000	0	0	527,600	2,235,030	—	48,092	3,335,722

Todd W. Bryant	2022	366,539	0	0	637,915	1,109,057	—	78,430	2,191,941
Chief Financial Officer	2021	344,500	0	0	228,130	1,634,125	—	61,197	2,267,952
	2020	330,000	0	0	183,400	816,742	—	48,092	1,378,234

Jennifer L. Klobnak	2022	474,539	0	0	919,340	1,374,436	—	69,840	2,838,155
Chief Operating Officer	2021	389,039	0	0	249,620	2,025,616	—	61,197	2,725,472
	2020	370,000	0	0	263,800	1,120,446	—	48,092	1,802,338

Aaron P. Diefenthaler	2022	336,616	0	0	406,220	500,790	—	69,840	1,313,466
Chief Investment Officer & Treasurer	2021	326,164	0	0	142,640	490,048	—	61,197	1,020,049
	2020	315,000	0	0	164,875	343,516	—	48,092	871,483

Jeffrey D. Fick	2022	356,616	0	0	293,123	290,063	—	69,840	1,009,642
Chief Legal Officer & Corporate Secretary



					All Other	Exercise
					Option Awards:	or Base	Grant Date
					Number of	Price of	Fair Value
		Estimated Possible Payouts Under			Securities	Option	of Stock
		Non-Equity Incentive Plan Awards			Underlying	Awards	and Option
Name	Grant Date	Threshold ($)⁽¹⁾	Target ($)⁽²⁾	Maximum ($)⁽³⁾	Options (#)⁽⁴⁾	($/Sh)⁽⁵⁾	Awards ($)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)
Craig W. Kliethermes	05/05/22				75,000	109.60	1,603,500
		0	3,704,994	7,500,000

Todd W. Bryant	02/01/22				3,000	97.85	51,840
	05/05/22				8,500	109.60	181,730
	08/01/22				8,500	103.56	172,380
	11/01/22				8,500	125.98	231,965
		0	1,634,125	7,500,000

Jennifer L. Klobnak	05/05/22				43,000	109.60	919,340
		0	2,025,616	7,500,000

Aaron P. Diefenthaler	05/05/22				19,000	109.60	406,220
		0	490,048	7,500,000

Jeffrey D. Fick	02/01/22				2,000	97.85	34,560
	05/05/22				3,750	109.60	80,175
	08/01/22				3,750	103.56	76,050
	11/01/22				3,750	125.98	102,338
		0	298,113	7,500,000



		Option Awards
				Equity
				Incentive
		Number of	Number of	Plan Awards
		Securities	Securities	Number of
		Underlying	Underlying	Underlying
		Unexercised	Unexercised	Unexercised	Option	Option
		Options (#)	Options (#)	Unearned	Exercise	Exercise
Name	Grant Date	Exercisable⁽¹⁾	Unexercisable⁽¹⁾	Options (#)	Price ⁽²⁾	Date
(a)	(b)	(c)	(d)	(e)	(f)	(g)
Craig W. Kliethermes	05/03/18	0	4,000		56.14	05/03/26
	05/02/19	10,500	7,000		75.66	05/02/27
	08/21/20	8,000	12,000		86.24	08/21/28
	05/06/21	2,800	11,200		106.02	05/06/29
	05/05/22	0	75,000		109.60	05/05/30
Todd W. Bryant	05/03/18	2,200	1,800		56.14	05/03/26
	05/02/19	2,250	1,500		75.66	05/02/27
	08/01/19	2,250	1,500		82.47	08/01/27
	11/01/19	2,250	1,500		89.32	11/01/27
	02/03/20	1,500	2,250		87.62	02/03/28
	08/21/20	2,000	3,000		86.24	08/21/28
	11/02/20	2,000	3,000		82.28	11/02/28
	02/01/21	1,000	4,000		90.64	02/01/29
	05/06/21	600	2,400		106.02	05/06/29
	08/02/21	600	2,400		101.07	08/02/29
	11/01/21	600	2,400		103.02	11/01/29
	02/01/22	0	3,000		97.85	02/01/30
	05/05/22	0	8,500		109.60	05/05/30
	08/01/22	0	8,500		103.56	08/01/30
	11/01/22	0	8,500		125.98	11/01/30
Jennifer L. Klobnak	05/03/18	16,000	4,000		56.14	05/03/26
	05/02/19	12,000	8,000		75.66	05/02/27
	08/21/20	8,000	12,000		86.24	08/21/28
	05/06/21	2,800	11,200		106.02	05/06/29
	05/05/22	0	43,000		109.60	05/05/30
Aaron P. Diefenthaler	05/05/16	9,000	0		57.09	05/05/24
	05/04/17	11,000	0		49.71	05/04/25
	05/03/18	7,200	1,800		56.14	05/03/26
	05/02/19	4,500	3,000		75.66	05/02/27
	08/21/20	5,000	7,500		86.24	08/21/28
	05/06/21	1,600	6,400		106.02	05/06/29
	05/05/22	0	19,000		109.60	05/05/30
Jeffrey D. Fick	05/03/18	6,000	3,000		56.14	05/03/26
	05/02/19	9,000	6,000		75.66	05/02/27
	08/21/20	1,666	2,501		86.24	08/21/28
	11/02/20	1,666	2,501		82.28	11/02/28
	02/01/21	833	3,333		90.64	02/01/29
	05/06/21	400	1,600		106.02	05/06/29
	08/02/21	400	1,600		101.07	08/02/29
	11/01/21	400	1,600		103.02	11/01/29
	02/01/22	0	2,000		97.85	02/01/30
	05/05/22	0	3,750		109.60	05/05/30
	08/01/22	0	3,750		103.56	08/01/30
	11/01/22	0	3,750		125.98	11/01/30