Michael Leggett
LA-Z-BOYAbout Michael Leggett
Michael A. Leggett is Senior Vice President and Chief Supply Chain Officer at La‑Z‑Boy (LZB), serving as VP & CSCO from December 2021 and promoted to SVP & CSCO in May 2022; he is age 52 per the FY2025 10‑K executive officers section . Prior roles include VP Global Supply Chain Operations at Dentsply Sirona (Feb 2019–Dec 2021) and VP Global Supply Chain & Sourcing at Masonite International (Apr 2017–Feb 2019) . Company performance context under his tenure: FY2025 sales $2.1B (+3% YoY), GAAP operating margin 6.4%, adjusted operating margin 7.6%, GAAP diluted EPS $2.35, adjusted diluted EPS $2.92, and GAAP operating cash flow $187.3M . Pay-versus-performance TSR shows $100 invested grew to $203.90 by FY2025; sales $2,109,207k and net income $99,556k for FY2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| La‑Z‑Boy | VP & Chief Supply Chain Officer | Dec 2021–Apr 2022 | Joined to lead global supply chain; promoted shortly after |
| La‑Z‑Boy | SVP & Chief Supply Chain Officer | May 2022–present | Enterprise supply chain leadership |
| Dentsply Sirona | VP Global Supply Chain Operations | Feb 2019–Dec 2021 | Led global operations in medical devices |
| Masonite International | VP Global Supply Chain & Sourcing | Apr 2017–Feb 2019 | Drove sourcing and supply chain for building products |
Fixed Compensation
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Base Salary ($) | 408,417 | 430,850 | 449,167 |
| MIP Target ($) | 306,306 | 323,069 | 336,758 |
| Actual MIP Paid ($) | 401,260 | 297,224 | 346,861 |
| All Other Compensation ($) | 26,939 | 50,541 | 56,331 |
| Total Compensation ($) | 1,389,068 | 1,311,231 | 1,447,165 |
Notes:
- FY2025 MIP plan paid 103% overall (company-wide), reflecting above-target sales and below-target operating margin; FY2024 MIP paid 92% (below target) .
Performance Compensation
| Program | Performance Metrics | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual MIP (FY2025) | Sales; Operating Margin | Not disclosed | Target opportunity $336,758 | 103% payout (company-wide); Leggett paid $346,861 | Cash paid following fiscal year |
| Annual MIP (FY2024) | Sales; Operating Margin | Not disclosed | Target $323,069 | 92% payout (company-wide); Leggett paid $297,224 | Cash paid following fiscal year |
| PSUs FY2023–FY2025 | Sales growth; Operating Cash Flow; rTSR | Not disclosed | Grant FY2025 target 7,156 units | 133% payout overall for the cycle | Earned-unvested PSUs vest Apr 25, 2026 and Apr 24, 2027 (counts below) |
| PSUs FY2022–FY2024 | Sales; Operating Cash Flow; rTSR | Not disclosed | Grant FY2024 target 9,267 units | 66% payout overall for the cycle | Earned-unvested PSUs vest Apr 26, 2025 and Apr 25, 2026 (counts below) |
Equity Grants (RSUs, PSUs, Options)
| Grant Year | RSUs (#) | RSUs Grant-Date Fair Value ($) | PSUs Target (#) | PSUs Grant-Date Fair Value ($) | Options (#) | Option Exercise Price ($) | Option Expiration |
|---|---|---|---|---|---|---|---|
| FY2025 (granted 6/24/2024) | 7,156 | 271,856 | 7,156 | 322,950 | — | — | — |
| FY2024 (granted 6/26/2023) | 9,267 | 256,325 | 9,267 | 276,291 | — | — | — |
| FY2023 (granted 6/28/2022) | 5,121 | 125,004 | 10,242 | 302,446 | 15,823 | 24.41 | 6/28/2032 |
Vesting schedules:
- RSUs FY2024 grant: 1/4 on Jun 26, 2024/2025/2026/2027 .
- RSUs FY2023 grant: 1/3 on Jun 28, 2024/2025/2026 .
- RS (FY2022, Leggett): 1/2 on Jan 15, 2025 and 1/2 on Jan 15, 2026 .
- Options FY2023: Unvested vest 1/2 on Jun 28, 2025 and 1/2 on Jun 28, 2026 .
Equity Ownership & Alignment
| As-of Date | Shares Owned Directly/Indirectly (#) | Rights to Acquire within 60 Days (#) | Total Beneficially Owned (#) | RSUs Not Vested (#) | Earned-Unvested PSUs (#) | Options Exercisable (#) | Options Unexercisable (#) | Pledged? |
|---|---|---|---|---|---|---|---|---|
| Jun 27, 2025 | 20,683 | 9,190 | 29,873 | 17,918 (MV $697,906) | 4,839 (PV $188,479) | 3,955 | 7,913 | None |
| Jun 28, 2024 | 8,498 | 3,955 | 12,453 | 15,608 | 4,823 | 3,955 | — | None |
| Jun 30, 2023 | 5,507 | 3,955 | 9,462 | 8,871 (MV $254,864) | 2,458 (PV $70,618) | — | 15,823 (unexercised) | None |
Additional alignment features:
- Executive stock ownership guidelines: 3x base salary for NEOs; 5x for CEO/Chair and directors; compliance required within 5 years; as of Apr 26, 2025 all NEOs either met or were within the transition period .
- Hedging and pledging prohibited for executives and directors .
Employment Terms
| Item | Detail |
|---|---|
| Role start dates | VP & CSCO Dec 2021; SVP & CSCO May 2022 |
| Employment agreements | Company states it does not provide employment agreements |
| Clawback policy | Applies to performance-based compensation |
| Change-in-control terms | Double-trigger; no single-trigger vesting; no excise tax gross-ups |
| Severance/benefits | Continuation of medical/dental during severance; under CIC two years’ continuation (three for CEO) |
| Deferred compensation | Registrant contributions $27,015; aggregate balance $77,233; vested balance $57,925 (FY2025) |
| Perquisites | Financial planning reimbursement, executive physicals, identity theft monitoring (FY2025) |
FY2025 estimated payouts (Leggett):
| Scenario | Base Salary (2x) ($) | Annual Incentive (2x average) ($) | Options accel ($) | RS/RSUs accel ($) | PSUs accel ($) | Benefits ($) | Severance ($) | Total Incremental Pay ($) |
|---|---|---|---|---|---|---|---|---|
| Change in Control + Qualifying Termination | 904,000 | 527,991 | 115,055 | 697,906 | 970,946 | 30,790 | — | 3,246,688 |
| Disability | — | — | 115,055 | 697,906 | 188,479 | — | — | 1,001,440 |
| Death | — | — | 115,055 | 697,906 | 188,479 | — | — | 1,001,440 |
| Involuntary Termination (Severance Plan) | — | — | — | — | — | 15,395 | 715,996 | 731,391 |
Trend context:
- FY2024 CIC estimate: total $2,730,335; severance plan total $694,799 .
- FY2023 CIC estimate: total $1,713,425; severance plan total $515,613 .
Performance & Track Record
| Year | TSR value of $100 | Peer TSR | Net Income ($000) | Sales ($000) |
|---|---|---|---|---|
| FY2025 | 203.90 | 192.81 | 99,556 | 2,109,207 |
| FY2024 | 169.85 | 184.06 | 122,626 | 2,047,027 |
| FY2023 | 143.95 | 172.75 | 150,664 | 2,349,433 |
Operational highlights (company-wide): FY2025 sales $2.1B (+3% YoY); Retail +5% YoY with store expansion/acquisitions; Wholesale +2% YoY; focus on supply chain scale/efficiency .
Risk Indicators & Red Flags
- No hedging/pledging permitted; anti-hedging/pledging policy in place .
- No employment agreements; no single-trigger CIC vesting; no excise tax gross-ups .
- Clawback policy on performance-based compensation .
- No related person transactions requiring disclosure since beginning of FY2025 .
- Severance/CIC governed by double-trigger agreements with defined multiples; benefits continuation .
Equity Supply/Vesting Calendar (Potential Selling Pressure)
| Instrument | Quantity | Vest Date(s) |
|---|---|---|
| RSUs (FY2024 grant) | 9,267 | 1/4 each on Jun 26, 2025/2026/2027 |
| RSUs (FY2023 grant) | Remaining unvested 3,841 | 1/3 on Jun 28, 2025 and 1/3 on Jun 28, 2026 |
| Restricted Stock (FY2022 grant) | 2,500 | 1/2 on Jan 15, 2026 (1/2 vested Jan 15, 2025) |
| Earned PSUs | 3,456 (FY2024 grant); 1,383 (FY2025 grant) | Apr 25, 2026 (FY2024) and Apr 24, 2027 (FY2025) |
| Options (FY2023 grant) | 7,913 unvested; 3,955 vested | Unvested vest 1/2 on Jun 28, 2025, 1/2 on Jun 28, 2026; expire 6/28/2032 |
Compensation Structure Analysis
- Mix shift away from options toward RSUs/PSUs: Leggett had option grants in FY2023 but none in FY2024–FY2025; equity is now primarily RSUs and PSUs, lowering risk and increasing certainty of value for the executive .
- Pay-for-performance linkage evidenced by MIP payouts varying with company performance (FY2025 slightly above target; FY2024 below target) and LTI PSU cycles showing below-target (66% for FY2022–FY2024) vs above-target (133% for FY2023–FY2025) payouts aligned to sales, cash flow, and rTSR outcomes .
- Ownership alignment: 3x salary guideline for NEOs; Leggett’s beneficial ownership increased from 9,462 (FY2023) to 29,873 (FY2025); no pledging .
Investment Implications
- Alignment: Significant unvested RSUs/PSUs and ownership guidelines (3x salary) plus anti-hedging/pledging policies indicate strong alignment with shareholders; no employment agreements and double-trigger CIC terms reduce entrenchment risk .
- Near-term supply: RSU/PSU vesting in Jun 2025/2026/2027 and Apr 2026/2027 could create periodic insider selling pressure around vest dates; options from FY2023 vest through 2026 and expire in 2032 .
- Pay sensitivity: MIP and PSUs tied to sales, operating margin/cash flow, and rTSR create direct sensitivity to execution in retail expansion, supply chain efficiencies, and cash generation highlighted in FY2025 results; recent above-target PSU payout (133%) suggests performance momentum but prior cycle (66%) underscores variability risk .
- Retention: CIC severance (2x salary and 2x average bonus plus equity acceleration under double-trigger) provides retention during potential strategic events without shareholder-unfriendly features (no tax gross-ups; no single-trigger) .