Leggett shareholders reject policy resolution; board names new CEO

The vote was taken during the annual meeting at the Fortune 500 firm’s Carthage headquarters. The proposal made by Walden Asset Management, of Boston, would have added discrimination protection for gay, lesbian, bisexual and transgender workers. The company’s board had already stated opposition.

Also during the meeting, the board announced the promotion of David S. Haffner from president to CEO. Haffner succeeds Felix E. Wright, who will continue to serve as an active employee in his role as chairman of the board, the company said in a news release.

Haffner is the company’s fourth CEO in 70 years. Karl G. Glassman, executive vice president, succeeds Haffner as chief operating officer.

With the shareholder vote, Leggett remains among the 8 percent of Fortune 500 companies that do not include sexual orientation in their hiring and employment nondiscrimination policies, according to Equality Forum, a civil rights organization. Leggett was No. 404 on the latest Fortune 500 list.

Minority shareholder Walden Asset Management, which owns 260,200 of the company’s 282.4 million outstanding shares, is a division of Boston Trust and Investment Management. Walden has been an activist for its clients on social, environmental and corporate governance issues since it was established in 1975.

Walden research associate Meredith Benton, who presented the proposal at Leggett’s meeting, said the resolution received about 25 percent approval from shareholders – an encouraging response.

“It went better than expected, beyond having them change the policy, which is the end goal,” she said. “Twenty-five percent is very strong. It indicates changing attitudes in general and at Leggett.”

Benton said Walden intends to refile its resolution next year.

Missouri is among 30 states with no law that prohibits such discrimination in the public or private workplace. The federal government prohibits such discrimination among federal employees, but there is no federal law that prohibits such discrimination in private employment.

Leggett’s board also declared a second-quarter dividend of 17 cents, a 6.3 percent increase over the first-quarter dividend of 16 cents per share.

The dividend will be paid on July 14 to shareholders of record on June 15.

Leggett & Platt shares (NYSE: LEG) closed May 10 at $26.67, compared to a 52-week range of $18.19 to $28.60.