Deere CEO Samuel Allen gets $4.28 million compensation for fiscal 2009; took helm in AugustBy Eileen Aj Connelly, AP
Friday, December 4, 2009
Deere CEO Allen gets $4.28M in fiscal 2009 pay
NEW YORK — Heavy equipment maker Deere & Co.’s president and chief executive Samuel R. Allen, who held those offices only the last two months of the company’s fiscal 2009 after his promotion within the company, received annual compensation of $4.28 million for the year.
Allen, 56, took the helm at Moline, Ill.-based Deere on Aug. 1, after serving for two months as chief operating officer during a planned transition. He has worked for Deere for 34 years.
He also joined the company’s board in June, and will become chairman on Feb. 24.
Allen received a salary of $795,965 for the year ended Oct. 31, according to a regulatory filing Friday.
The bulk of his compensation came from non-equity incentives totaling $1.61 million and stock and options valued at $1.65 million at the time they were awarded.
Allen also received $222,299 in other compensation, including $27,738 for personal use of the company’s aircraft.
Also included in Allen’s compensation package was $9,201 in above-market returns on deferred compensation.
Allen succeeded Robert Lane as CEO. Lane will step down as chairman in February.
For fiscal 2009, Lane received compensation of $14.02 million. That included a salary of $1.51 million, non-equity incentives totaling $4.86 million and stock and options valued at $7.49 million at the time they were awarded.
Lane also received $127,309 in other compensation, including $91,509 for personal use of the company’s aircraft.
Deere, the world’s largest manufacturer of agricultural equipment, also makes construction and forestry equipment, such as backhoes, excavators, riding mowers and leaf blowers.
In November, Deere said its fiscal 2009 profit fell 57 percent to $873 million, or $2.06 per share, from a record $2.05 billion, or $4.70 per share the previous year.
The company lost $223 million in the fourth quarter due to big charges related in part to pension costs and job cuts. Its sales of farm and construction equipment fell 28 percent in the fourth quarter.
While farm prices remained historically high, they dropped sharply from the bubble highs of recent years.
Deere forecast higher earnings in fiscal 2010, but based that in part on tight inventory control and cost-cutting steps that have already been taken. The company expects sales of large farm equipment to drop more than 10 percent.
Deere shares hit a 52-week high of $55.40 in Friday trading, before closing down 16 cents at $54.24.
On the Net:
Deere & Co.: www.deere.com
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