LEGGETT & PLATT INC 8-K

What Happened

• Leggett & Platt Inc. (LEG) filed an 8-K reporting that on December 27, 2025 its Human Resources & Compensation Committee and Board approved retention agreements for a limited group of key management personnel. The agreements cover four named executive officers (the CEO, Karl G. Glassman, did not receive a retention award).
• The agreements call for retention payments to be paid in 2025 but conditioned on continued employment through December 23, 2026. The named officers and retention amounts are: Benjamin M. Burns (EVP & CFO) $618,000; J. Tyson Hagale (EVP, President – Bedding Products) $618,000; R. Samuel Smith, Jr. (EVP, President – Specialized Products and Furniture, Flooring & Textile Products) $540,750; Jennifer J. Davis (EVP & General Counsel) $630,875.

Key Details

• Approval date: December 27, 2025; payments to be made in 2025 but contingent on employment through December 23, 2026.
• Retention as multiple of base salary: Burns 103%; Hagale 103%; Smith 103%; Davis 128.8%.
• Clawback schedule: 100% clawback if executive voluntarily quits (except death, Disability, or Good Reason) or is terminated for Cause on or before May 29, 2026; 50% clawback for qualifying terminations after May 29, 2026 up to December 23, 2026. Clawback provisions terminate upon a Change in Control.
• Agreements include customary confidentiality and non‑compete covenants; the Form of Retention Bonus Award Agreement is filed as Exhibit 10.1 to the 8‑K.

Why It Matters

• For investors, these retention payments signal the company’s effort to secure leadership stability through 2026 by compensating key executives up front while tying payout to continued service.
• The clawback terms limit payments if executives leave or are fired for cause, reducing some shareholder risk, but the clawbacks terminate on a Change in Control — a relevant detail if the company becomes a takeover target.
• The cash impact occurs in 2025 (payments made that year) and could affect near‑term cash flow and compensation expense disclosures; investors should watch future filings for related expense recognition and any further disclosures about definitions (Cause, Good Reason, Disability) referenced in the agreements.