Wednesday, May 10, 2006
New Leggett CEO to make $1.3 million a year
The rewards of being the newly-minted CEO of a Fortune 500 company are obvious in the employment agreement between Carthage-based Leggett & Platt and its new CEO David Haffner.
According to the agreement, which was filed today with the Securities and Exchange Commission, Haffner will receive an annual salary of $775,000 and a cash bonus of $542,500, giving him a grand total of $1,317.500 a year.
According to the agreement, Hafner's salary will be reviewed each year by the company's Compensation Committee which may give him a raise, but cannot cut his salary.
That would be enough benefits for most of us, but Haffner's deal features other perks. According to the agreement, "(Haffner) shall be granted non-qualified options to purchase a number of shares of the company's common stock equal to $2,325,000 divided by the closing price of the company's common stock on May 10, 2006."
He also will receive at least four weeks of paid vacation and can participate in any insurance, pension, profit sharing, stock bonus, stock option, stock purchase or other benefit the company has, according to the agreement.
And that's not all.
"The company shall pay or reimburse the executive for all transportation, hotel,living and related expenses incurred by the executive on business trips away from the company's principal office and for all other business and entertainment expenses reasonably incurred by him in connection with the business of the company and its subsidiaries or affiliates."
Haffner's former position, chief operating officer, will now be held by Karl Glassman, whose employment agreement was also filed with the Securities and Exchange Commission. Glassman has been serving as executive vice president. Glassman will receive a base salary of $620,000, and a $372,000 bonus, bringing him to $992,000 annually.