Leggett & Platt Governance
Procedure for Identifying and Evaluating Director Candidates
The Nominating & Corporate Governance Committee (the “Committee”) is responsible for identifying and evaluating the best available, qualified candidates for election to the Board of Directors. Following its evaluation, the Committee recommends to the full Board a slate of director candidates for inclusion in the Company’s proxy statement and proxy card.
In the case of incumbent directors, the Committee reviews each director’s overall service during his or her current term, including the number of meetings attended, level of participation, quality of performance, and any transactions between the director and the Company. In the case of new director candidates, the Committee first determines whether the nominee must be independent under NYSE rules, then identifies any special needs of the current Board. The Committee will consider individuals recommended by Board members, Company management, shareholders and, if it deems appropriate, a professional search firm.
The Board of Directors may also consider candidates to fill a vacancy in the Board outside of the Annual Shareholder Meeting process. The Committee will use the same criteria as are used to evaluate a director nominee to be elected by shareholders. In the event of a vacancy to be filled by the Board, the Committee will recommend one or more candidates for election and proxies will not be solicited.
The Committee recognizes the value of cultivating a Board with a diverse mix of opinions, perspectives, skills, experiences, and backgrounds. A diverse board enables more balanced, wide-ranging discussion in the boardroom, which, we believe, enhances the decision-making processes. Having diverse representation and a variety of viewpoints is also important to our shareholders and other stakeholders. As such, the Committee actively seeks director candidates from a wide variety of backgrounds, without discrimination based on race, ethnicity, color, ancestry, national origin, religion, sex, sexual orientation, gender identity, age, disability, or any other status protected by law. In furtherance of this non-discrimination policy, for each search, the Committee will ensure that the pool includes female and racial or ethnic minority candidates.
All nominations to the Board will be based upon merit, experience and background relevant to the Board’s current and anticipated needs, as well as the Company’s businesses.
The Committee believes director candidates should meet and demonstate the following minimum criteria:
- Character and integrity
- A commitment to the long-term growth and profitability of the Company
- A willingness and ability to make a sufficient time commitment to the affairs of the Company in order to effectively perform the duties of a director, including regular attendance at Board and committee meetings
- Significant business or public experience relevant and beneficial to the Board and the Company
In addition to the minimum criteria described above, the Committee may also consider the following factors in evaluating candidates for recommendation to the Board:
- Present and anticipated needs of the Board for particular experience or expertise and whether the candidate would satisfy those needs
- Requirement for the Board to have a majority of independent directors and whether the candidate would be considered independent
- Whether the candidate would be considered an audit committee "financial expert" or "financially literate" as described in NYSE listing standards and the Audit Committee charter
- Accomplishments of each candidate in his or her field
- Outstanding professional and personal reputation
- Relevant experience, including experience at the strategy/policy setting level, high level managerial experience in a complex organization, industry experience and familiarity with the products and processes used by the Company
- Ability to exercise sound business judgment
- Breadth of knowledge about issues affecting the Company
- Ability and willingness to contribute special competencies to Board activities
- A willingness to assume broad fiduciary responsibility
- Fit with the Company's culture
Following the Committee's initial review of a candidate's qualifications, one or more Committee members will interview the candidate. The Committee may arrange subsequent interviews with the Board Chair, Lead Director and/or members of the Company's management.
The Committee does not intend to alter the manner in which it evaluates candidates, including the minimum criteria set forth above, for candidates recommended by a shareholder. Shareholders who wish to recommend candidates for the Committee's consideration must submit written recommendation to the Secretary of the Company at No. 1 Leggett Road, Carthage, MO 64836. Recommendations must be sent by certified or registered mail and received by December 15th for consideration at the following year's annual meeting of shareholders. Recommendations must include the following:
- Shareholder's name, number of shares owned, length of period held, and proof of ownership
- Candidate's name, address, phone number and age
- A resume describing, at a minimum, the candidate's educational background, occupation, employment history, and material outside commitments (e.g., memberships on other boards and committees, charitable foundations, etc.)
- A supporting statement which describes the shareholder's and candidate's reasons for nomination to the Board of Directors and documents the candidate's ability to satisfy the director qualifications described above
- The candidate's consent to a background investigation
- The candidate's written consent to stand for election if nominated by the Board and to serve if elected by the shareholders
- Any other information that will assist the Committee in evaluating the candidate in accordance with this procedure
The Corporate Secretary will promptly forward these materials to the Committee Chair, the Board Chair and the Lead Director. The Committee may contact recommended candidates to request additional information necessary for its evaluation or for disclosure under applicable SEC rules.
Separate procedures apply if a shareholder wishes to nominate a director candidate for election at a meeting of shareholders. Those procedures and director qualifications are specified in Article 2 of the Company's Bylaws. Nothing contained in this procedure supercedes any requirements made by Article 2 of the Company's Bylaws.
Approved: February 23, 2021