Document:

Summary Sheet of Executive Cash Compensation

 Exhibit 10.4 

SUMMARY SHEET OF EXECUTIVE CASH COMPENSATION 

Except as indicated below, 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 2016 and as adopted for 2017 by the Company’s Compensation Committee (the “Committee”) on March 22, 2017. 

 

									
	 Named Executive Officers
	  	2016 Base
Salary	 	  	2017 Base
Salary	 
	 Karl G. Glassman, President and CEO
	  	$	1,100,000	 	  	$	1,175,000	 
	 Matthew C. Flanigan, EVP and CFO
	  	$	523,000	 	  	$	550,000	 
	 Perry E. Davis, EVP, President – Residential Products & Industrial Products1
	  	$	425,000	 	  	$	500,000	 
	 J. Mitchell Dolloff, EVP, President – Specialized Products & Furniture Products2
	  	$	425,000	 	  	$	500,000	 
	 Jack D. Crusa, SVP –
Operations3
	  	$	380,000	 	  	$	380,000	 
	 David S. Haffner, Former Board Chair and
CEO4
	  	$	1,130,000	 	  	$	1,130,000	 

  

	1 	As previously reported, Mr. Davis’ 2016 base salary rate was increased from $385,000 to $425,000 on November 13, 2016. 

	2 	Mr. Dolloff’s base salaries are included in this disclosure because he is expected to be included as a named executive officer in the Company’s proxy statement for the 2017 Annual Shareholders Meeting.
Mr. Dolloff’s 2016 base salary rate was increased from $335,000 to $425,000 on November 13, 2016. 

	3 	As previously reported, Mr. Crusa notified the Company that his retirement date is expected to be December 31, 2017. As determined in January 2017, as part of Mr. Crusa’s retirement transition, he
will continue to receive his current annual base salary until April 2, 2017 when such rate will be reduced to $190,000. His salary rate is expected to be further reduced to $152,000 on July 9, 2017. 

	4 	As previously reported, Mr. Haffner served as the Company’s Board Chair and Chief Executive Officer through December 31, 2015. Pursuant to Mr. Haffner’s former employment agreement with the
Company, he is entitled to continue to receive his annual base salary (at the rate of $1,130,000) for all of 2016 and on a prorated basis through the 2017 Annual Shareholders Meeting, which is scheduled to be held in May. 

Except as noted below, the named executive officers are eligible to receive an annual cash incentive under the Company’s 2014 Key Officers Incentive Plan
(filed March 25, 2014 as Appendix A to the Company’s Proxy Statement) (the “KOIP”) in accordance with the 2017 KOIP Award Formula (filed March 27, 2017 as Exhibit 10.1 to the Company’s Form 8-K). Each executive’s cash award is calculated by multiplying his annual base salary at the end of the KOIP plan year by his Target Percentage, then applying the award formula adopted by the Committee for that
year. The Target Percentages in 2016, and as adopted for 2017 by the Committee on March 22, 2017, for the principal executive officer, principal financial officer, and other named executive officers are shown in the following table. 

 

									
	 Named Executive Officers
	  	2016 KOIP
Target
Percentage	 	 	2017 KOIP
Target
Percentage	 
	 Karl G. Glassman, President and CEO
	  	 	115	% 	 	 	120	% 
	 Matthew C. Flanigan, EVP and CFO
	  	 	80	% 	 	 	80	% 
	 Perry E. Davis, EVP, President – Residential Products & Industrial Products
	  	 	60	% 	 	 	80	% 
	 J. Mitchell Dolloff, EVP, President – Specialized Products & Furniture Products1
	  	 	60	% 	 	 	80	% 
	 Jack D. Crusa, SVP –
Operations2
	  	 	60	% 	 	 	N/A	 
	 David S. Haffner, Former Board Chair and
CEO3
	  	 	115	% 	 	 	115	% 

  

	1 	Mr. Dolloff’s Target Percentages are included in this disclosure because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for its 2017 Annual
Shareholders Meeting. His 2016 Target Percentage was increased from 50% to 60% on November 13, 2016. 

	2 	As previously reported, Mr. Crusa notified the Company that his retirement date is expected to be December 31, 2017. As determined in January 2017, as part of Mr. Crusa’s retirement transition, he
will participate in the Company’s Key Management Incentive Compensation Plan (the “KMICP”), which is a cash bonus plan for non-executive officers. The KMICP award formula for Mr. Crusa
was adopted on March 22, 2017 and included performance objectives based on Return on Capital Employed (70% relative weight) and Free Cash Flow (30% relative weight). It will be calculated by multiplying his weighted average annual base salary
for 2017 by his target percentage of 60%, then applying the award formula. 

	3 	As previously reported, Mr. Haffner served as the Company’s Board Chair and Chief Executive Officer through December 31, 2015. Pursuant to Mr. Haffner’s former employment agreement with the
Company, he received an annual incentive payment with a Target Percentage of 115% for all of 2016, and will continue to receive a payment for 2017 on a prorated basis through the 2017 Annual Shareholders Meeting, which is scheduled to be held in
May. Mr. Haffner’s 2016 (and prorated 2017) annual incentive are calculated in the same manner as a Corporate Participant under the 2016 and 2017 KOIP Award Formulas (based on Return on Capital Employed (ROCE) (60% relative weight); Cash
Flow (20% relative weight); and IPGs (20% relative weight)); however, since Mr. Haffner did not have IPGs in 2016 or 2017, as discussed below, his incentive award is based 70% on ROCE and 30% on Cash Flow for these years. 

Individual Performance Goals. As previously reported, except as noted below, on February 20, 2017, the Committee adopted Individual
Performance Goals (the “IPGs”) for our named executive officers. Except as noted below, the 2017 KOIP Award Formula recognizes that 20% of each executive’s cash award in 2017 under our KOIP will be based on the achievement of
the IPGs. The IPGs for our named executive officers in 2017 are, and for 2016 were: 
  

					
	 Named Executive Officers
	  	 2016 IPGs
	    	 2017 IPGs

	 Karl G. Glassman
President and CEO
	  	Strategic planning, growth initiatives and succession planning	    	Strategic planning and succession planning
			
	 Matthew C. Flanigan
EVP and CFO
	  	Strategic planning, credit facility renewal, information technology and internal audit improvements	    	Strategic planning, information technology improvements, succession planning and efficiency initiatives
			
	 Perry E. Davis
EVP, President – Residential
Products & Industrial
Products
	  	Growth of targeted businesses and supply chain initiatives	    	Growth initiatives and succession planning
			
	 J. Mitchell Dolloff
EVP, President – Specialized Products
& Furniture Products1
	  	Growth initiatives and succession planning	    	Strategic planning, succession planning and efficiency initiatives
			
	 Jack D. Crusa
SVP
–Operations2
	  	Production improvements for targeted businesses, purchasing initiatives and succession planning	    	None assigned
			
	 David S. Haffner
Former Board Chair and
CEO3
	  	None assigned	    	None assigned

  

	1 	Mr. Dolloff’s IPGs are being disclosed because he is expected to be included as a named executive officer in the Company’s proxy statement for the 2017 Annual Shareholders Meeting. 

  
 2 

	2 	Mr. Crusa notified the Company that his retirement date is expected to be December 31, 2017. As determined in January 2017, as part of Mr. Crusa’s retirement transition, he will participate in the
KMICP, which is a cash bonus plan for non-executive officers. As such, he did not receive IPGs for 2017. The KMICP award formula for Mr. Crusa was adopted on March 22, 2017 and included performance
objectives based on Return on Capital Employed (70% relative weight) and Free Cash Flow (30% relative weight). It will be calculated by multiplying his weighted average annual base salary for 2017 by his target percentage of 60%, then applying the
award formula. 

	3 	Mr. Haffner served as the Company’s Board Chair and Chief Executive Officer through December 31, 2015. He was not employed by the Company after this date. As such, he did not receive IPGs for 2016 or
2017. 

 The achievement of the IPGs is measured by the following schedule. 

Individual Performance Goals Payout Schedule 

(1-5 scale) 
  

					
	 Achievement
	  	Payout	 
	 1 – Did not achieve goal
	  	 	0	% 
	 2 – Partially achieved goal
	  	 	50	% 
	 3 – Substantially achieved goal
	  	 	75	% 
	 4 – Fully achieved goal
	  	 	100	% 
	 5 – Significantly exceeded goal
	  	 	up to 150	% 

  
 3Award Formula for the 2017-2018 Profitable Growth Incentive Program

 Exhibit 10.5 

AWARD FORMULA FOR 2017-2018 

LEGGETT & PLATT, INCORPORATED 

PROFITABLE GROWTH INCENTIVE PROGRAM 
 On
March 22, 2017, the Compensation Committee (Committee) adopted the award formula and performance targets under the Profitable Growth Incentive (PGI) Program for the 2017-2018 Performance Period. Growth performance stock units (GPSUs) are
granted to certain key management employees under the PGI Program including our named executive officers: Karl G. Glassman (President and CEO), Matthew C. Flanigan (Executive Vice President and CFO), Perry E. Davis (Executive Vice President,
President – Residential Products & Industrial Products), and J. Mitchell Dolloff (Executive Vice President, President – Specialized Products & Furniture Products). Neither Jack D. Crusa nor David S. Haffner were granted
GPSUs for the 2017-2018 Performance Period. The GPSUs are granted pursuant to the Company’s Flexible Stock Plan, amended and restated, effective as of May 5, 2015, filed March 25, 2015 as Appendix A to our Proxy Statement for the
Annual Shareholders Meeting. The Committee granted the 2017-2018 GPSUs in accordance with the 2017 Form of Profitable Growth Incentive Award Agreement (Form of Award), which was filed as Exhibit 10.2 to the Company’s Form 8-K on November 10, 2016. 
 The above executives, as well as other key management employees, were granted a number
of GPSUs determined by multiplying the executive’s current base annual salary by an award multiple (approved by the Committee), and dividing this amount by the average closing price of our common stock for the 10 business days immediately
following the date of our fourth quarter earnings press release. The number of GPSUs that will ultimately vest will depend on the Revenue Growth and EBITDA Margin of the Company (for Glassman and Flanigan), the Residential Products and Industrial
Products segments (for Davis) and the Specialized Products and Furniture Products segments (for Dolloff) at the end of a 2-year Performance Period beginning January 1, 2017 and ending December 31,
2018. The percentage of vested GPSUs will range from 0% to 250% of the number granted according to the below payout schedules. Payouts will be interpolated for achievement levels falling between those set out in the schedules below. 

2017-2018 Award Payout Percentages 
  

																			
	 EBITDA

Margin
	 	Corporate (Glassman and Flanigan)
	
20.8%
	 	0%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
19.8%
	 	0%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
18.8%
	 	0%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
17.8%
	 	0%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%
	
16.8%
	 	0%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%
	
15.8%
	 	0%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%
	
14.8%
	 	0%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%
	
13.8%
	 	0%	 	25%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%
	
<13.8%
	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	 	 	<2.7%	 	2.7%	 	3.7%	 	4.7%	 	5.7%	 	6.7%	 	7.7%	 	8.7%	 	9.7%
	  	 	Revenue Growth
		 	
	 EBITDA

Margin
	 	Residential Products (Davis – Weighted 79.8% of Award)
	
24.3%
	 	0%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
23.3%
	 	0%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
22.3%
	 	0%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
21.3%
	 	0%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%
	
20.3%
	 	0%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%
	
19.3%
	 	0%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%
	
18.3%
	 	0%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%
	
17.3%
	 	0%	 	25%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%
	
<17.3%
	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	 	 	<2.4%	 	2.4%	 	3.4%	 	4.4%	 	5.4%	 	6.4%	 	7.4%	 	8.4%	 	9.4%
	 	 	Revenue Growth

																			
	 EBITDA

Margin
	 	Industrial Products (Davis – Weighted 20.2% of Award)
	
21.3%
	 	0%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
20.3%
	 	0%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
19.3%
	 	0%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
18.3%
	 	0%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%
	
17.3%
	 	0%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%
	
16.3%
	 	0%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%
	
15.3%
	 	0%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%
	
14.3%
	 	0%	 	25%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%
	
<14.3%
	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	 	 	<2.5%	 	2.5%	 	3.5%	 	4.5%	 	5.5%	 	6.5%	 	7.5%	 	8.5%	 	9.5%
	  	 	Revenue Growth
		 	
	 EBITDA

Margin
	 	Specialized Products (Dolloff) (Weighted 56.1% of Award)
	
29.6%
	 	0%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
28.6%
	 	0%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
27.6%
	 	0%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
26.6%
	 	0%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%
	
25.6%
	 	0%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%
	
24.6%
	 	0%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%
	
23.6%
	 	0%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%
	
22.6%
	 	0%	 	25%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%
	
<22.6%
	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	 	 	<3.2%	 	3.2%	 	4.2%	 	5.2%	 	6.2%	 	7.2%	 	8.2%	 	9.2%	 	10.2%
	  	 	Revenue Growth
		 	
	 EBITDA

Margin
	 	Furniture Products (Dolloff) (Weighted 43.9% of Award)
	
22.3%
	 	0%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
21.3%
	 	0%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
20.3%
	 	0%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%	 	250%
	
19.3%
	 	0%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%	 	250%
	
18.3%
	 	0%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%	 	250%
	
17.3%
	 	0%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%	 	250%
	
16.3%
	 	0%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%	 	250%
	
15.3%
	 	0%	 	25%	 	50%	 	75%	 	100%	 	138%	 	175%	 	213%	 	250%
	
<15.3%
	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	 	 	<2.9%	 	2.9%	 	3.9%	 	4.9%	 	5.9%	 	6.9%	 	7.9%	 	8.9%	 	9.9%
	 	 	Revenue Growth

 “EBITDA Margin” for the Company or applicable business units equals the cumulative Earnings before Interest,
Taxes, Depreciation and Amortization (EBITDA) over the 2-year Performance Period divided by the total revenue over the Performance Period. EBITDA Margin targets are based upon the prior 3-year cumulative EBITDA Margin for the Company or applicable business units. The threshold for payout begins at 1 percentage point less than the 3-year average. 

“Revenue Growth” will be the compound annual growth rate (CAGR) of the total revenue for the Company or applicable business units in the
second fiscal year of the Performance Period compared to the Base Year Revenue. “Base Year Revenue” is the total revenue of the Company or applicable business units in the fiscal year immediately preceding the Performance Period.

 The Revenue Growth threshold for payout for the Company or applicable business units is based on the “Forecast GDP Growth” for the
Company or applicable business units as determined by the weighted average GDP growth forecast for the Performance Period 

  
 2 

 
calculated from data published (in January in the first year in the Performance Period) in the International Monetary Fund’s World Economic Outlook Update, and weighted according to
the Company’s or applicable business units’ revenue originating from the United States, Euro Area, China, Canada and Mexico. 
 In determining the
Revenue Growth for the Company or applicable business units during the Performance Period, the percentage of Revenue Growth will be adjusted by the difference (positive or negative) between the Forecast GDP Growth for the Company minus the Actual
GDP Growth for the Company, but such adjustment will be made only if the difference is greater than ±1.0%. “Actual GDP Growth” is the weighted average GDP growth for 2017-2018 calculated from data published in the
International Monetary Fund’s January 2019 World Economic Outlook Update (or, in the event such publication is unavailable, a reasonable substitute report) for the same geographies and using the same weighting. 

The calculations for Revenue Growth and EBITDA Margin will include results from businesses acquired during the Performance Period. Revenue Growth and EBITDA
Margin will exclude results for any businesses divested during the Performance Period, and the divested businesses’ revenue will also be deducted from Base Year Revenue. EBITDA margin will exclude results from
non-operating branches and, with respect to business units, all amounts related to corporate allocations. EBITDA results will be adjusted to eliminate gain, loss or expense, as determined in accordance with
standards established under Generally Accepted Accounting Principles (i) from non-cash impairments; (ii) related to loss contingencies identified in Note S to the financial statements in the
Company’s 2016 Form 10-K; (iii) that are unusual in nature or infrequent in occurrence; (iv) related to the disposal of a segment of a business, or (v) related to a change in accounting
principle. 
 Capitalized terms, not otherwise defined herein, have the meanings given to them in the Form of Award. 

  
 3

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