Exhibit 10.1 2018 Award Formula under the 2014 Key Officers Incentive Plan



 Exhibit 10.1 

AWARD FORMULA FOR 2018 

LEGGETT & PLATT, INCORPORATED 

2014 KEY OFFICERS INCENTIVE PLAN 
 The 2014
Key Officers Incentive Plan (the “Plan”) provides cash Awards to Participants based on the Company’s operating results for the prior year. Capitalized terms not defined in this document have the meaning ascribed under the Plan.
There are separate Award Formulas under the Plan for Corporate Participants and Profit Center Participants. 
 Under both formulas, a Participant’s
Award is calculated by reference to the Target Percentage of the Participant’s annual salary at the end of the Year. The Award Formulas and each Participant’s Target Percentage are determined by the Committee no later than 90 days after
the beginning of each Year or before 25% of the Performance Period has elapsed. 
 Participants in the Plan are the executive officers of the Company. The
Company has a separate Key Management Incentive Compensation Plan for other employees. Awards under the Key Management Incentive Compensation Plan are calculated in substantially the same manner as awards under the Plan. 

For 2018, Awards under the Plan will be determined by achievement of the following Performance Objectives. Additional awards will be made based on the
achievement of Individual Performance Goals, which will be established separately from this Plan and will be wholly independent of Awards under this Plan. 
  

							
	 Participant Type
	  	 Performance Objectives
	  	Relative
Weight	 
	 Corporate Participants
	  	 Return on Capital Employed (ROCE)
	  	 	60	% 
		  	 Cash Flow
	  	 	20	% 
		  	 Individual Performance Goals*
	  	 	20	% 
	 Profit Center Participants
	  	 Return on Capital Employed (ROCE)
	  	 	60	% 
		  	 Free Cash Flow (FCF)
	  	 	20	% 
		  	 Individual Performance Goals*
	  	 	20	% 
		

  

	*	These awards are established outside the Plan. 

 Award Formula for Corporate Participants

 The Performance Objectives for Corporate Participants are calculated as follows: 

 

							
		 	ROCE =	  	 Earnings Before Interest and Taxes (EBIT)
	  	
	 	  	Net Property Plant and Equipment (PP&E) + Working Capital1,2	  	

  

	1 	Quarterly averaging of Net PP&E and Working Capital 


	2 	Working Capital, excluding cash and current maturities of long-term debt, as presented on the Company’s December 31, 2018 Consolidated Balance Sheet 









					
		 	Cash Flow =	  	Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) ± Change in Working Capital1 + Non-Cash Impairments
– Capital Expenditures

  

	1 	Change in Working Capital, excluding cash and current maturities of long-term debt, from December 31, 2017 to December 31, 2018, as reflected on the Company’s Consolidated Balance Sheets


 Awards for Corporate Participants are determined by the Company’s aggregate 2018 financial results. Financial results from
acquisitions are excluded from calculations in the year of acquisition. Financial results from businesses divested during the year will be included in the calculations; however, the Performance Objective targets relating to the divested businesses
will be prorated to reflect only that portion of the year prior to the divestiture. Financial results from businesses classified as discontinued operations will be included in the calculations. Financial results will exclude (i) certain
currency and hedging-related gains and losses, (ii) gains and losses from asset disposals, and (iii) items that are outside the scope of the Company’s core, on-going business activities. 

Performance Objectives shall be adjusted for all items of gain, loss or expense for the fiscal year, as determined in accordance with standards established
under Generally Accepted Accounting Principles, (i) from non-cash impairments; (ii) related to loss contingencies identified in footnotes to the financial statements in the Company’s 2017 10-K; (iii) related to the disposal of a segment of a business; or (iv) related to a change in accounting principle. 

Achievement targets and payout percentages for Corporate Participants’ Performance Objectives are set forth below. No Awards are paid for ROCE
achievement below 38% and Cash Flow below $325 million. The ROCE and Cash Flow payouts are each capped at 150%. Payouts will be interpolated for achievement levels falling between those set out in the schedule. 

2018 
 Corporate Targets
and Payout Schedule 
  

									
	ROCE	  	 	  	Cash Flow
	 Achievement
	  	Payout	  	 	  	Achievement	  	Payout
	 < 38.0%
	  	0%	  		  	   <$325M	  	0%
	    38.0%
	  	50%	  	Threshold	  	     $325M	  	50%
	    41.5%
	  	75%	  		  	  $362.5M	  	75%
	    45.0%
	  	100%	  	Target	  	     $400M	  	100%
	    48.5%
	  	125%	  		  	  $435.5M	  	125%
	    52.0%
	  	150%	  	Maximum	  	     $475M	  	150%


  
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 Award Formula for Profit Center Participants 

Profit Center Participants manage numerous Profit Centers. The Company sets a ROCE target and a Free Cash Flow (FCF) target for each Profit Center every Year
which aggregate to the Segment level. 
 The Performance Objectives for Profit Center Participants are calculated as follows:      

 

							
		 	ROCE =	  	 EBIT
	  	
	 	  	Net PP&E + Working Capital1, 2	  	

  

	1 	Monthly averaging of Net PP&E and Working Capital, adjusted for currency effects. 


	2 	Working Capital excludes cash and current maturities of long-term debt and balance sheet items not directly related to on-going Profit Center activity, such as interest receivable
and payable, income taxes receivable and payable, current deferred tax assets and liabilities, and dividends payable. 

  

					
		 	FCF =	  	EBITDA (adjusted for currency effects) ± Change in Working Capital1 + Non-Cash Impairments – Capital
Expenditures

  

	1 	Change in Working Capital from December 31, 2017 to December 31, 2018 excludes cash and current maturities of long-term debt and balance sheet items not directly related to
on-going Profit Center activity, such as interest receivable and payable, income tax receivable and payable, current deferred taxes assets and liabilities, and dividends payable. 


Financial results from acquisitions are excluded from calculations in the year of acquisition. Financial results from businesses divested during the year will
be included in the calculations; however, the Performance Objective targets relating to the divested businesses will be prorated to reflect only that portion of the year prior to the divestiture. Financial results from businesses classified as
discontinued operations will be included in the calculations. Financial results will exclude (i) results from non-operating branches, (ii) certain currency and hedging-related gains and losses,
(iii) gains and losses from asset disposals, (iv) items that are outside the scope of the Company’s core, on-going business activities or relating to any other special events or change in
business conditions, and (v) the impact of corporate allocations. 
 Performance Objectives shall be adjusted for all items of gain, loss or expense
for the fiscal year, as determined in accordance with standards established under Generally Accepted Accounting Principles, (i) from non-cash impairments; (ii) related to loss contingencies
identified in footnotes to the financial statements in the Company’s 2017 10-K; (iii) related to the disposal of a segment of a business; or (iv) related to a change in accounting principle.

 Financial results for each Profit Center may include a critical compliance adjustment, ranging from a potential 5% increase for exceptional safety
performance to a 20% deduction for critical compliance failures. 

  
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 Achievement targets and payout percentages for Profit Center Participants are set forth below. No Awards are paid
for achievement below 80% of the ROCE and FCF targets. The ROCE and FCF payouts are each capped at 150%. The payout will be interpolated for achievement levels falling between those set out in the schedule. 

2018 
 Profit Center
Targets by Segment 
  

							
	 Segment
	  	    ROCE Target    	  	    FCF Target    	 
	 Residential Products
	  	33.9%	  	 	$169.1M	 
	 Industrial Products
	  	24.0%	  	 	$44.3M	 
	 Specialized Products
	  	53.5%	  	 	$124.3M	 
	 Furniture Products
	  	37.7%	  	 	$84.7M	 

 2018 

Profit Center Payout Schedule 
  

					
	 Achievement
	  	 	  	 Payout

	 <80%
	  		  	0%
	 80%
	  	Threshold	  	60%
	 90%
	  		  	80%
	 100%
	  	Target	  	100%
	 110%
	  		  	120%
	 120%
	  		  	140%
	 125%
	  	Maximum	  	150%

 The President—Residential Products & Industrial Products will have 85% of his Award based upon the Performance
Objectives for Residential Products and 15% based upon the Performance Objectives for Industrial Products. The President—Specialized Products & Furniture Products will have 60% of his Award based upon the Performance Objectives for
Specialized Products and 40% based upon the Performance Objectives for Furniture Products. 
 Sample Calculation 

For Corporate and Profit Center Participants, the Award is calculated by multiplying the Participant’s salary, Target Percentage, the relative weight of
the Performance Objective, and the payout percentage for each Performance Objective. The sample calculation below assumes a Participant with a base salary of $500,000, a Target Percentage of 80%, a ROCE payout of 100%, and Cash Flow/FCF payout of
80%: 
  

																					
	Performance 
Objective	  	Participant’s
Base Salary	 	  	Participant’s
Target %	 	 	Relative
Weight	 	 	Payout 
Percentage	 	 	Award	 
	 ROCE
	  	$	500,000	 	  	 	80	% 	 	 	60	% 	 	 	100	% 	 	$	240,000	 
	 Cash Flow/FCF
	  	$	500,000	 	  	 	80	% 	 	 	20	% 	 	 	80	% 	 	$	64,000	 
		  				  				 				 				 	  
	  
	 
	 Total Award
	  				  				 				 				 	$	304,000	 


  
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