Document:

2016 AWARD FORMULA UNDER THE COMPANY'S 2014 KEY OFFICERS INCENTIVE PLAN

 Exhibit 10.1 

AWARD FORMULA FOR 2016 

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 2016, 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
 
 Awards for Corporate Participants are determined by the Company’s aggregate 2016 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 that portion of the year prior to the divestiture. Financial results from businesses classified as discontinued operations will be included in the calculations. 

The Performance Objectives for Corporate Participants are calculated as follows: 
  

			
	ROCE =	 	                          EBIT           
                 
		 	    Net PP&E and 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, 2016 Consolidated Balance Sheet 

			
	Cash Flow =	 	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, 2015 to December 31, 2016, as reflected on the Company’s Consolidated Balance Sheets

 The Committee shall adjust the Performance Objectives 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 Note T to the financial statements in the Company’s 2015 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. 

Achievement targets and payout percentages for Corporate Participants’ Performance Objectives are set forth below. No Awards are paid for ROCE
achievement below 39% and Cash Flow below $400M. 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. 

2016 
 Corporate Targets
and Payout Schedule 
  

																	
	ROCE	 	 	 	  	Cash Flow	 
	 Achievement
	 	  	      Payout      	 	 	 	  	Achievement	 	  	      Payout      	 
	 	< 39.0%	 	  	 	    0	% 	 		  	<$	400M	  	  	 	    0	%
	 	  39.0%	 	  	 	  50	% 	 	Threshold	  	  $	400M	  	  	 	  50	%
	 	  42.5%	 	  	 	  75	% 	 		  	  $	425M	  	  	 	  75	%
	 	  46.0%	 	  	 	100	% 	 	Target	  	  $	450M	  	  	 	100	%
	 	  49.5%	 	  	 	125	% 	 		  	  $	475M	  	  	 	125	%
	 	  53.0%	 	  	 	150	% 	 	Maximum	  	  $	500M	  	  	 	150	%

 The Award is calculated by multiplying a Participant’s salary, Target Percentage, the relative weight of the Performance
Objective, and the payout percentage. The sample calculation set forth below assumes a Participant with a base salary of $250,000 and a Target Percentage of 50%. If the Company achieved 46% ROCE and $400M Cash Flow, the Participant’s Award
under the Plan (which does not include the Individual Performance Goals), would be $87,500. 
  

																					
	 Performance Objective
	  	Participant’s
Base Salary	 	  	Participant’s
Target %	 	 	Relative
Weight	 	 	Payout
Percentage	 	 	Award	 
	 ROCE
	  	$	250,000	  	  	 	50	%	 	 	60	%	 	 	100	%	 	$	75,000	  
	 Cash Flow
	  	$	250,000	  	  	 	50	%	 	 	20	%	 	 	50	%	 	$	12,500	  
	 Total Award
	  				  				 				 				 	$	  87,500	  

 Award Formula for Profit Center Participants  

Profit Center Participants manage numerous Profit Centers. The Company sets a ROCE target and a FCF target for each Profit Center every Year. The achievement
of those Profit Center targets “rolls up” to an aggregate achievement for all the operations under a Profit Center Participant’s management. 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. 

  
 2 

 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 that portion of the year prior to the divestiture. Financial
results from businesses classified as discontinued operations will be included in the calculations. 
 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, 2015 to December 31, 2016 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. 

The Committee shall adjust the Performance Objectives 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 Note T to the financial statements in the Company’s 2015 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. 

Achievement targets and payout percentages for Profit Center Participants are set forth below. No Awards are paid for achievement below 80% of the aggregate
ROCE and FCF targets for the Profit Centers under the Participant’s management. 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. 

2016 
 Profit Center
Targets 
  

									
	 Segment
	  	ROCE Target	 	 	FCF Target	 
	 Residential
	  	 	33.9	% 	 	$	184.8M	  
	 Commercial
	  	 	41.6	% 	 	$	52.2M	  
	 Industrial & Specialized
	  	 	54.4	% 	 	$	189.9M	  
	 Specialized
	  	 	61.1	% 	 	$	122.3M	  

 2016 

Profit Center Payout Schedule 
  

									
	 Achievement
	 	  	 	  	 	  	     Payout    

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

  
 3 

 The Award is calculated by multiplying a Participant’s salary, Target Percentage, the relative weight of the
Performance Objective, and the payout percentage. The sample calculation below assumes a Participant with a base salary of $250,000 and a Target Percentage of 50%. If the Participant’s Profit Centers achieved 100% of the aggregate ROCE target
and 90% of the aggregate FCF target, and had no compliance-related adjustments, the Participant’s Award under the Plan (which does not include the Individual Performance Goals), would be $95,000. 

 

																					
	 Performance Objective
	  	Participant’s
Base Salary	 	  	Participant’s
Target %	 	 	Relative
Weight	 	 	Payout
Percentage	 	 	Award	 
	 ROCE
	  	$	250,000	  	  	 	50	%	 	 	60	%	 	 	100	%	 	$	75,000	  
	 FCF
	  	$	250,000	  	  	 	50	%	 	 	20	%	 	 	80	%	 	$	20,000	  
	 Total Award
	  				  				 				 				 	$	  95,000	  

  
 4SUMMARY SHEET OF EXECUTIVE CASH COMPENSATION

 Exhibit 10.2 

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 2015 and as adopted for 2016 by the Compensation Committee (“Committee”) on March 23, 2016. 
  

									
	 Named Executive Officers
	  	2015 Base
Salaries	 	  	2016 Base
Salaries	 
	 Karl G. Glassman, President and Chief Executive Officer1
	  	$	840,000	  	  	$	1,100,000	  
	 Matthew C. Flanigan, EVP and Chief Financial Officer
	  	$	507,000	  	  	$	523,000	  
	 Perry E. Davis, SVP, President – Residential Furnishings
	  	$	370,000	  	  	$	385,000	  
	 Jack D. Crusa, SVP, President – Industrial Materials & Specialized
Products2
	  	$	365,000	  	  	$	380,000	  
	 David S. Haffner, Former Board Chair and Chief Executive Officer3
	  	$	1,130,000	  	  	$	1,130,000	  
	 Joseph D. Downes, Jr. – Former SVP, President – Industrial
Materials4
	  	$	140,000	  	  	 	N/A	  

  

	1 	Mr. Glassman became the Company’s President and Chief Executive Officer, effective January 1, 2016, and, as previously reported, the Committee increased his annual base salary from $840,000 to $1,100,000
at its January 4, 2016 meeting. 

  

	2 	Mr. Crusa’s base salaries are disclosed because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for the 2016 Annual Meeting of Shareholders.

  

	3 	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 Meeting of Shareholders, which is expected to be held in May. 

 

	4 	Mr. Downes served as the Company’s SVP, President – Industrial Materials through April 5, 2015 and in a lesser position with the Company until his retirement on December 31, 2015. Accordingly,
from January 1, 2015 through April 5, 2015, he received remuneration based on an annual salary of $347,300, and from April 6, 2015 through December 31, 2015, he received remuneration based on an annual salary of $140,000.

 Except as noted below, the named executive officers are expected to be eligible to receive a cash bonus 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 2016 KOIP Award Formula (filed March 28, 2016 as Exhibit 10.1 to the
Company’s Form 8-K). The executive’s cash award is expected to be calculated by multiplying his annual salary at the end of the year by his Target Percentage, then applying the award formula adopted by the Committee for that year. The
Target Percentages set by the Committee in 2015 and 2016 for the principal executive officer, principal financial officer and other named executive officers are shown in the following table. 

 

									
	 Named Executive Officers
	  	2015
Target
Percentages	 	 	2016
Target
Percentages	 
	 Karl G. Glassman, President and Chief Executive Officer1
	  	 	90	% 	 	 	115%	  
	 Matthew C. Flanigan, EVP and Chief Financial Officer
	  	 	80	% 	 	 	80%	  
	 Perry E. Davis, SVP, President – Residential Furnishings
	  	 	60	% 	 	 	60%	  
	 Jack D. Crusa, SVP, President – Industrial Materials and Specialized
Products2
	  	 	60	% 	 	 	60%	  
	 David S. Haffner, Former Board Chair and Chief Executive Officer3 
	  	 	115	% 	 	 	115%	  
	 Joseph D. Downes, Jr., Former SVP, President – Industrial Materials4
	  	 	40	% 	 	 	N/A	  

  

	1 	Mr. Glassman became the Company’s President and Chief Executive Officer, effective January 1, 2016, and as previously reported, the Committee increased his Target Percentage from 90% to 115% at its
January 4, 2016 meeting. 

  

	2 	Mr. Crusa’s target percentages are disclosed because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for the 2016 Annual Meeting of Shareholders.

  

	3 	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 will continue to
receive a cash bonus payment with a Target percentage of 115% for all of 2016 and on a prorated basis through the 2017 Annual Meeting of Shareholders, which is expected to be held in May. Mr. Haffner’s 2016 cash bonus will be calculated in
the same manner as a Corporate Participant under the 2016 KOIP Award Formula which is based on Return on Capital Employed (ROCE) (60% relative weight); Cash Flow (20% relative weight); and Individual Performance Goals (20% relative weight). However,
since Mr. Haffner does not have 2016 Individual Performance Goals, as discussed below, his bonus will be based 70% on ROCE and 30% on Cash Flow. 

  

	4 	Mr. Downes served as the Company’s SVP, President – Industrial Materials through April 5, 2015 and in a lesser position with the Company until his retirement on December 31, 2015. As a result,
in 2015, he participated in the Company’s Key Management Incentive Compensation Plan, which is a cash bonus plan for non-executive officers. Reference is made to the Summary Description of the Key Management Incentive Compensation Plan for
Profit Center Participants, filed May 6, 2015 as Exhibit 10.1 to the Company’s Form 10-Q. The award payout under this plan was determined in substantially the same manner as the 2014 Key Officers Incentive Plan and the 2015 award formula
(filed March 26, 2015 as Exhibit 10.3 to the Company’s Form 8-K). The performance objectives were Return on Capital Employed (70% relative weight) and Free Cash Flow (30% relative weight) increased by as much as 5% for exceptional safety
performance or decreased by as much as 20% for critical compliance failures. 

 Individual Performance Goals. Each
executive’s cash award under the award formula is based, in part, on individual performance goals established outside the KOIP (20% relative weight). The 2016 goals for our named executive
officers1 are: 
 Karl G. Glassman: Strategic planning, growth initiatives and succession
planning. 
 Matthew C. Flanigan: Strategic planning, credit facility renewal, information technology and internal audit improvements. 

  
 2 

 Perry E. Davis: Growth of targeted businesses and supply chain initiatives. 

Jack D. Crusa:2 Production improvements for targeted businesses, purchasing initiatives and
succession planning. 
  

	1 	Neither Mr. Haffner nor Mr. Downes were employed by the Company as of January 1, 2016. As such, neither have individual performance goals for 2016. 

 

	2 	Mr. Crusa’s individual performance goals are disclosed because he is expected to be included as a named executive officer in the Company’s definitive proxy statement for the 2016 Annual Meeting of
Shareholders. 

 The achievement of the individual performance goals 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	% 

  
 3

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