Leggett CEO Karl Glassman Converts Awards, Disposes Shares

What Happened

• Karl G. Glassman, President & CEO and Director of Leggett & Platt (LEG), had a series of transactions reported 2026-08-26 tied to Leggett’s merger into Somnigroup. The Form 4 shows multiple dispositions to the issuer (shares/awards cancelled or transferred) and deemed acquisitions related to assumed performance awards.
• Key line items reported: a deemed acquisition of 1,167,344 shares at $0.00 (deemed acquisition of Leggett shares underlying assumed PSUs); dispositions to the issuer of 2,308,087.111 shares, 514,335 shares, and 29,012.486 shares (all N/A for price on the form); two derivative dispositions reported at cash values: 40,917 shares @ $9.78 = $400,001 and 55,051 shares @ $7.27 = $400,001. The filing also reports a grant/assumption and immediate disposition of 1,167,338 derivative shares.
• These changes reflect conversion/cancellation of Leggett common shares, RSUs, PSUs and options as part of the Merger Agreement with Somnigroup rather than a routine open-market sale.

Key Details

• Transaction date: 2026-08-26 (Form filed 2026-08-27 — timely filing).
• Prices & values shown: two derivative dispositions with listed proceeds of $400,001 each (40,917 @ $9.78; 55,051 @ $7.27), other large share dispositions reported as N/A on the Form (cancellation/conversion).
• Shares owned after transaction: the Form shows Leggett shares/awards were converted or cancelled at the merger Effective Time and replaced by Somnigroup RSUs, options or cash equivalents per the merger terms (the filing does not report remaining Leggett common shares).
• Notable footnotes:
  • Merger agreement (dated 4/13/26): outstanding Leggett PSUs with unfinished performance periods were assumed by Somnigroup and converted into Somnigroup RSUs at 0.1455 shares per Leggett share; assumed PSUs were treated as 200% of target for vesting purposes (F1).
  • Outstanding Leggett RSUs, shares held in trusts, and retirement-plan holdings were converted into Somnigroup RSUs or cash equivalents at the 0.1455 ratio (F2–F4).
  • Leggett stock options were assumed and converted into Somnigroup options at a 0.1455 ratio with an adjusted exercise price (F5).
  • Some assumed PSU awards were converted into Somnigroup RSUs that are cash-settled on vesting (vest dates: 12/31/2026, 12/31/2027, 12/31/2028; cash paid by following March 15) (F6).

Context

• These entries are merger-related conversions/assumptions and partial cash dispositions, not typical open-market buys or discretionary insider sales. Derivative entries reflect award/option conversions or cash settlements under the Merger Agreement; the filing does not provide evidence that Glassman made independent market trades.
• For investors, merger-driven conversions change the form of executive ownership (Leggett → Somnigroup RSUs/options/cash). Purchases are generally more informative as bullish signals; merger conversions are largely administrative and reflect deal terms rather than a vote on future stock performance.