Business Context and Reporting Period
Company: Leggett & Platt, Incorporated
Filing Type: Form 8-K (Current Report)
Date of Report: February 19, 2026
Subject: Approval of 2026 executive compensation, including base salaries, short-term incentive targets (KOIP), and long-term incentive (LTI) award multiples and formulas.
Key Financial Metrics and Compensation Targets
This filing details compensation targets rather than historical financial results. Key 2026 performance thresholds and targets include:
- Corporate EBITDA Targets: Threshold $300.00M; Target $375.00M; Maximum $468.75M.
- Corporate Cash Flow Targets: Threshold $185.04M; Target $231.30M; Maximum $289.13M.
- Profit Center EBITDA Targets (Combined):
- Bedding Products: Threshold $133.92M; Target $167.40M.
- Specialized Products: Threshold $107.44M; Target $134.30M.
- Furniture, Flooring & Textile Products: Threshold $79.76M; Target $99.70M.
- Long-Term Incentive (PSU) Targets (3-Year Period):
- Cumulative EBITDA: Threshold $971.20M; Target $1,214.00M.
- Return on Invested Capital (ROIC): Threshold 8.9%; Target 11.1%.
Material Changes Versus Prior Period
The filing outlines adjustments to executive compensation for 2026 compared to 2025:
- Base Salary Increases:
- CEO Karl G. Glassman: Increased from $1,275,000 to $1,315,000.
- CFO Benjamin M. Burns: Increased from $600,000 to $618,000.
- EVP J. Tyson Hagale: Increased from $600,000 to $618,000.
- EVP R. Samuel Smith, Jr.: Increased from $525,000 to $550,000.
- EVP Jennifer J. Davis: Increased from $490,000 to $515,000.
- Short-Term Incentive (KOIP) Target Percentages:
- Most executives maintained their 2025 target percentages (CEO 135%, others 80%).
- General Counsel Jennifer J. Davis saw an increase from 70% to 75%.
- Long-Term Incentive (LTI) Multiples:
- Most executives maintained 2025 multiples (CEO 570%, others 200%).
- General Counsel Jennifer J. Davis saw an increase from 170% to 175%.
- Leadership Change: J. Mitchell Dolloff, former CEO, departed in May 2024 and is not a participant in 2026 plans.
Guidance, Outlook, and Management Commentary
Performance Criteria and Adjustments:
- Short-Term Incentives: Awards are weighted 65% on EBITDA and 35% on Cash Flow (Corporate) or Free Cash Flow (Profit Centers). Payouts are capped at 200% of target. No awards are paid below threshold levels.
- Long-Term Incentives (PSUs): 50% based on 3-year cumulative EBITDA and 50% on ROIC. Results are subject to a Relative Total Shareholder Return (TSR) multiplier (0.75x to 1.25x) based on peer group performance. If absolute TSR is negative, the payout cannot exceed 100%.
- Exclusions: Financial calculations exclude currency/hedging gains/losses, asset disposal gains/losses, non-cash impairments, and items outside core business activities.
- Compliance: Profit Center results may be adjusted by up to +5% for safety performance or -20% for critical compliance failures.
Important Facts for Investor Verification
- Verify the actual 2026 financial performance against the disclosed EBITDA and Cash Flow thresholds to determine potential executive payout levels.
- Monitor the company's Relative TSR ranking against the S&P 500/400 Industrial, Consumer Discretionary, and Materials sectors, as this directly impacts the 2026 PSU payout multiplier.
- Review the "Key Officers Incentive Plan" (Exhibit 10.2) and "2026 Form of Performance Stock Unit Award Agreement" (Exhibit 10.4) for specific definitions of EBITDA, Cash Flow, and ROIC adjustments.
- Note that the grant of PSUs and RSUs has a delayed effective date of February 26, 2026, contingent on employment status and share price calculation.
- Confirm that no financial results from acquisitions are included in the year of acquisition for incentive calculations.