Leggett & Platt brings back former CEO

SBJ file

Karl Glassman is CEO of Leggett & Platt once again.

The Leggett & Platt Inc. (NYSE: LEG) Board of Directors has reinstalled the company’s former president and CEO amid a restructuring period that has included 52-week lows for the company's stock.

The Carthage-based manufacturer announced in a news release this week that Karl Glassman has been named president and CEO, effective immediately. He takes over for Mitch Dolloff, the company's leader since early 2022 who has resigned as president and CEO and board member, also effective immediately.

"Karl knows the company better than anyone, and we are pleased he has agreed to step back into the CEO role. Karl's intimate knowledge of the company's end-markets and operations, along with his strong relationships with Leggett's customers and employees, will ensure a seamless transition," said Robert Brunner, lead independent director on the Leggett & Platt board, in the release. "The board is confident that Karl is the right leader to guide Leggett at this critical time as the company navigates the current market environment and positions for long-term profitable growth."

Officials added in the release that Dolloff "mutually agreed with the board that now is the right time for a change in leadership at Leggett & Platt." Dolloff, who was chief operating officer before his rise to president and CEO, plans to stay on board for one year in a consulting capacity to assist with the transition.

Glassman retired as CEO of Leggett & Platt at the end of 2021, Springfield Business Journal previously reported. A Leggett & Platt employee for nearly 40 years, he took on the CEO job in 2016. Glassman has continued to serve as a Leggett & Platt board member.

The leadership change follows a Leggett & Platt restructuring plan announced in January through which the company intends to make plant closures and workforce reductions, according to past reporting.

"I am honored to return and lead Leggett at this important time for our company," Glassman said in the release. "The restructuring plan, other operational improvement initiatives and our focus on strengthening our balance sheet create a clear path toward a more focused, agile company with the ability to deliver improved profitability and enhanced shareholder value."

During the first quarter, Leggett & Platt reported an earnings decrease of 41% to $31.6 million, according to past reporting. The company, which makes engineered components and products in the areas of bedding, automotive and home and work furniture, posted sales that were down during the quarter by 10% to $1.1 billion.

LEG shares hit a 52-week low this morning of $10.73 per share. The stock's 52-week high is $32.83 per share.