Document:

2015-2016 Award Formula under the Profitable Growth Incentive Program

 Exhibit 10.2 

AWARD FORMULA FOR 2015-2016 

LEGGETT & PLATT, INCORPORATED 

PROFITABLE GROWTH INCENTIVE PROGRAM 
 On
March 24, 2015, the Compensation Committee (Committee) adopted the award formula and performance targets under the Profitable Growth Incentive (PGI) Program for the 2015-2016 Performance Period. Growth performance stock units (GPSUs) are
granted to certain key management employees under the PGI Program including our named executive officers: David S. Haffner, Board Chair & CEO, Karl G. Glassman, President & COO, Matthew C. Flanigan, Executive Vice
President & CFO, Perry E. Davis, Senior Vice President, President – Residential Furnishings and Jack D. Crusa, Senior Vice President, President – Specialized Products. Joseph D. Downes, Jr., Senior Vice President, President –
Industrial Materials will retire from his current position as of April 5, 2015 but continue with the Company in a lesser position through December 31, 2015. As such, Mr. Downes was not granted GPSUs. Mr. Crusa will assume the
additional position of President – Industrial Materials on April 5. 
 The GPSUs are granted pursuant to the Company’s Flexible Stock Plan,
amended and restated effective as of May 10, 2012, filed March 30, 2012 as Appendix A to our Proxy Statement for the Annual Meeting of Shareholders. The Committee granted the 2015-2016 GPSUs in accordance with the 2015 Form of Profitable
Growth Incentive Award Agreement and Terms and Conditions, which is filed as Exhibit 10.1 to the Company’s Form 8-K on March 26, 2015. 
 Each of
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 GPSU’s that will ultimately vest will depend upon the Revenue Growth and EBITDA
Margin of the Company (for Haffner, Glassman and Flanigan), the Residential Furnishings segment minus Transportation (for Davis) and the combined Specialized Products & Industrial Materials segments (for Crusa) at the end of a 2-year Performance
Period beginning January 1, 2015 and ending December 31, 2016. 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. 
  

																																					
	EBITDA
Margin	 	2015-2016 Award Payout Percentage-Corporate (Haffner, 
Glassman and Flanigan)	 
	18.7%	 	 	0	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	17.7%	 	 	0	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	16.7%	 	 	0	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	15.7%	 	 	0	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	14.7%	 	 	0	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	13.7%	 	 	0	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	12.7%	 	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 
	11.7%	 	 	0	% 	 	 	25	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 
	<11.7%	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 
		 	 	<3.5	% 	 	 	3.5	% 	 	 	4.5	% 	 	 	5.5	% 	 	 	6.5	% 	 	 	7.5	% 	 	 	8.5	% 	 	 	9.5	% 	 	 	10.5	% 
		 	 	Revenue Growth	  

																																					
	EBITDA
Margin	 	2015-2016 Award Payout Percentage-Residential Furnishings 
Segment minus Transportation (Davis)	 
	19.3%	 	 	0	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	18.3%	 	 	0	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	17.3%	 	 	0	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	16.3%	 	 	0	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	15.3%	 	 	0	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	14.3%	 	 	0	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	13.3%	 	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 
	12.3%	 	 	0	% 	 	 	25	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 
	<12.3%	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 
		 	 	<3.5	% 	 	 	3.5	% 	 	 	4.5	% 	 	 	5.5	% 	 	 	6.5	% 	 	 	7.5	% 	 	 	8.5	% 	 	 	9.5	% 	 	 	10.5	% 
		 	 	Revenue Growth	  
		
	EBITDA
Margin	 	2015-2016 Award Payout Percentage – Specialized & Industrial 
Segments (Crusa)	 
	19.5%	 	 	0	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	18.5%	 	 	0	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	17.5%	 	 	0	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	16.5%	 	 	0	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	15.5%	 	 	0	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	14.5%	 	 	0	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 	 	 	250	% 
	13.5%	 	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 	 	 	250	% 
	12.5%	 	 	0	% 	 	 	25	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 	 	 	138	% 	 	 	175	% 	 	 	213	% 	 	 	250	% 
	<12.5%	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 	 	 	0	% 
		 	 	<3.4	% 	 	 	3.4	% 	 	 	4.4	% 	 	 	5.4	% 	 	 	6.4	% 	 	 	7.4	% 	 	 	8.4	% 	 	 	9.4	% 	 	 	10.4	% 
		 	 	Revenue Growth	  

 “EBITDA Margin” for the Company or applicable profit centers 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. 
 “Revenue
Growth” will be the compound annual growth rate (CAGR) of the total revenue for the Company or the applicable profit centers 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 profit centers in the fiscal year immediately preceding the Performance Period. 
 In
determining the Revenue Growth for the Company or applicable profit centers during the Performance Period, the percentage of Revenue Growth will be adjusted by the difference (positive or negative) between the Forecast GDP Growth minus the Actual
GDP Growth, but such adjustment will be made only if the difference is greater than ±1.0%. The “Forecast GDP Growth” is 3.5%, representing the weighted average GDP growth forecast for 2015-2016 calculated from data published
in the International Monetary Fund’s January 2015 World Economic Outlook Update for the United States (70% weighting), Euro Area (11%), China (11%), Canada (6%) and Mexico (2%). “Actual GDP Growth” is the weighted
average GDP growth for 2015-2016 calculated from data published in the International Monetary Fund’s January 2017 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. 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 T to the financial 

  
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statements in the Company’s 2014 Form 10-K; (iii) that are (a) extraordinary, (b) unusual in nature, or (c) 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 2015 Form of Profitable Growth Incentive Award Agreement and Terms and Conditions. 

  
 32015 Award Formula under the Company's 2014 Key Officers Incentive Plan

 Exhibit 10.3 

AWARD FORMULA FOR 2015 

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 Plan for other employees. Awards under the Key Management Incentive Plan are calculated in substantially the same manner as awards under the Plan. 

For 2015, 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 2015 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, 2015 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, 2014 to December 31, 2015, 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
2014 10-K; (iii) that are (a) extraordinary, (b) unusual in nature, or (c) 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 32% and Cash Flow below $225M. 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. 

2015 
 Corporate Targets
and Payout Schedule 
  

																	
	ROCE	 	 	 	  	Cash Flow	 
	 Achievement
	 	 	Payout	 	 	 	  	Achievement	 	  	Payout	 
	 	< 32.0	% 	 	 	0	% 	 		  	<$	225.0M	  	  	 	0	% 
	 	32.0	% 	 	 	50	% 	 	Threshold	  	$	225.0M	  	  	 	50	% 
	 	34.5	% 	 	 	75	% 	 		  	$	262.5M	  	  	 	75	% 
	 	37.0	% 	 	 	100	% 	 	Target	  	$	300.0M	  	  	 	100	% 
	 	39.5	% 	 	 	125	% 	 		  	$	337.5M	  	  	 	125	% 
	 	42.0	% 	 	 	150	% 	 	Maximum	  	$	375.0M	  	  	 	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 37% ROCE and $225M 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. 
 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. 

  
 2 

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

  

	1 	Change in Working Capital from December 31, 2014 to December 31, 2015 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 2014 10-K; (iii) that are
(a) extraordinary, (b) unusual in nature, or (c) 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. 

2015 
 Profit Center
Targets 
  

									
	 Segment
	  	ROCE Target	 	 	FCF Target	 
	 Residential
	  	 	30.7	% 	 	$	143.0M	  
	 Commercial
	  	 	37.0	% 	 	$	31.2M	  
	 Specialized & Industrial
	  	 	43.0	% 	 	$	148.3M	  

 2015 

Profit Center Payout Schedule 
  

									
	 Achievement
	 	 	 	  	Payout	 
	 	<80	% 	 		  	 	0	% 
	 	80	% 	 	Threshold	  	 	60	% 
	 	90	% 	 		  	 	80	% 
	 	100	% 	 	Target	  	 	100	% 
	 	110	% 	 		  	 	120	% 
	 	120	% 	 		  	 	140	% 
	 	125	% 	 	Maximum	  	 	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 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, as adjusted for compliance, 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	  

  
 3

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