According to a report from Bizjournals, India-based Tractors and Farm Equipment Limited (TAFE), which owns a 16% stake in AGCO, filed a report with the SEC requesting that AGCO separate the positions of CEO and Chairman of the Board "to better fulfill the board’s duty of oversight of the company."
"We believe the company should create a stronger governance structure going forward, beginning with the separation of the roles of the chair and the CEO," it said in a statement.
In the Nov. 12 filing, TAFE also proposed the following:
- Better alignment of compensation programs for senior management with long term company performance.
- Increased focus by the company on long term strategy, including portfolio allocation,
- Rotation of board committee chairs and other members of the Board committees to avoid embedded views and bring fresh perspectives to important matters,
- Refreshment of the board on a more regular basis to increase independence and add directors with diverse experience and diverse views of opportunities and risks presented to the company, and
- Regular engagement with stockholders on governance, strategy and performance matters.
"Stockholder rights have been limited at the company and TAFE believes that improving them would provide stockholders more opportunities to provide input to the directors and management on key governance and strategic matters," TAFE asserts.