Leggett elects first independent chairman

Richard T. Fisher, a Leggett director since 1972, was named chairman following the May 8 meeting. Fisher, an investment banker, is the first independent director to serve as chairman since Leggett (NYSE: LEG) went public in 1967.

The board also declared a second-quarter dividend of 25 cents per share, a 39 percent increase over the 18-cent dividend during the same quarter last year. The dividend will be paid on July 15 to shareholders of record on June 13.

Shareholders meanwhile defeated for a third consecutive year a proposal to add sexual orientation to Leggett’s nondiscrimination policy. They also elected additional board members, ratified the selection of PricewaterhouseCoopers as the company’s independent registered public accountant for 2008 and approved the amendment and restatement of the company’s Flexible Stock Plan. The meeting also saw the exit of two board members.

Chairman Emeritus Harry M. Cornell Jr. and Chairman Felix Wright both announced earlier this year that they would not seek reelection.

Cornell, the grandson of co-founder J.P. Leggett, joined the company in 1950, served as president 1960–1982, as CEO 1960–1999, and as chairman 1982–2002. He was first elected to the board in 1958. Cornell’s mother and father both served on the company’s board, and his father served as president and chairman until his death in 1982.

Wright joined the company in 1959, served as chairman since 2002, CEO 1999–2006, vice chairman 1999–2002 and chief operating officer 1979–1999. He was first elected to the board in 1977.

Although the board and company planned the transition, President and CEO Dave Haffner said Cornell and Wright’s departures were emotional for executives and other directors. Haffner said Cornell and Wright helped facilitate his joining Leggett when he returned to Carthage in 1983.

“They will continue to be very significant shareholders,” Haffner said after the meeting. “Both have indicated that they are just a phone call away.”

This story originally appeared in SBJ’s May 12 free e-news Daily Update. Click here to register.