Executive Cash Compensation Summary Sheet for 2011 – Leggett & Platt, Incorporated
This document outlines the 2010 and 2011 base salaries for Leggett & Platt’s principal executive officers, as approved by the Compensation Committee. It also describes eligibility for additional cash awards under the company’s 2009 Key Officers Incentive Plan, based on a set target percentage of each executive’s salary and individual performance goals. The performance goals are partly subjective and tailored to each executive’s role. The agreement sets the framework for executive compensation for the year 2011.
Exhibit 10.3
SUMMARY SHEET FOR EXECUTIVE CASH COMPENSATION
The following table sets forth annual base salaries provided to the Company’s principal executive officer, principal financial officer and other named executive officers in 2010 and the 2011 base salaries approved by the Compensation Committee of the Board of Directors (“Committee”) on March 25, 2011.
| Named Executive Officers | 2010 Base Salaries | 2011 Base Salaries | ||||||
| David S. Haffner, President & Chief Executive Officer | $ | 922,500 | $ | 960,000 | ||||
| Karl G. Glassman, Executive Vice President & Chief Operating Officer | $ | 692,000 | $ | 720,000 | ||||
| Matthew C. Flanigan, Senior Vice President – Chief Financial Officer | $ | 405,000 | $ | 420,000 | ||||
| Paul R. Hauser, Senior Vice President, President – Residential Furnishings Segment | $ | 328,600 | $ | 340,000 | ||||
| Joseph D. Downes, Jr., Senior Vice President, President – Industrial Materials Segment | $ | 312,100 | $ | 320,000 | ||||
The executive officers will also be eligible to receive a cash award under the Company’s 2009 Key Officers Incentive Plan (filed March 26, 2009 as Appendix B to the Company’s Proxy Statement) in accordance with the 2011 Award Formula (filed March 30, 2011 as Exhibit 10.2 to the Company’s Form 8-K). An executive’s cash award is calculated by multiplying his annual salary at the end of the year by a percentage (“Target Percentage”) set by the Committee, then applying an award formula adopted by the Committee for that year. The Target Percentages applicable to the Company’s principal executive officer, principal financial officer and other named executive officers are shown in the following table. None of the Target Percentages were changed from 2010 levels.
| Named Executive Officers | 2011 Target Percentages | |||
| David S. Haffner, President & Chief Executive Officer | 90 | % | ||
| Karl G. Glassman, Executive Vice President & Chief Operating Officer | 75 | % | ||
| Matthew C. Flanigan, Senior Vice President – Chief Financial Officer | 65 | % | ||
| Paul R. Hauser, Senior Vice President, President – Residential Furnishings Segment | 50 | % | ||
| Joseph D. Downes, Jr., Senior Vice President, President – Industrial Materials Segment | 50 | % | ||
Individual Performance Goals. An executive’s cash award under the 2011 Award Formula is based, in part, on individual performance goals established outside the 2009 Key Officers Incentive Plan (20% relative weight). The assessment of most of the individual performance goals is inherently subjective and qualitative. The types of goals for our named executive officers in 2011 include: Haffner: strategic planning, new product development, continued margin enhancement, and talent management and succession planning; Glassman: succession planning, continued margin enhancement, increased on-site reviews of operations, and remediation of internal audit findings; Flanigan: credit facility renewal, working capital management, cash repatriation, and improved internal controls; Hauser: development of growth opportunities, facility consolidations, and improved internal controls; Downes: development of growth opportunities, and utilization and efficiency initiatives.
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