By Bob Tita of DOW JONES NEWSWIRES
January 13, 2012 — Deere & Co. (DE) said Chairman and Chief Executive Samuel Allen's compensation for the company's 2011 fiscal year rose 35% from increases in stock grants and performance-based awards.
Allen's base salary, executive perks, stock and options and other types of compensation totaled $16.57 million for the year ended Oct. 31, 2011, compared with $12.29 million for the previous year, according to a regulatory filing with the U.S. Securities and Exchange Commission.
Allen's base salary increased 4.6% to $1.25 million, while his performance-based cash awards increased nearly 15% to $6.04 million, as world's largest manufacturer of farm machinery recorded a record profit last year.
Allen, 58 years old, who was promoted to CEO in 2009 after managing the company's construction equipment division, has focused on expanding the company's machinery sales overseas, particularly in developing countries such as China and Brazil. Deere also has been expanding aggressively in Russia, one of world largest grain producers, to capture pent-up demand for new tractors and harvesting combines.
Deere had fiscal 2011 net income of $2.8 billion, or $6.63 a share, a 50% increase from fiscal 2010. Sales and revenue rose 23% to $32 billion.
Stock shares and options granted to Allen last year were worth $9.03 million on the day they were granted in late 2010, compared with $5.64 million worth of stock and options issued for fiscal 2010. Deere stock ended the fiscal year nearly flat at $75.50 a share. The stock closed Friday's regular trading session up 0.26% at $84.66 a share.
Allen's executive perquisites and other compensation last year rose 31% to $245,880, mostly because of a 46% increase in the contribution to his defined benefit pension.
Allen's pension and deferred compensation, which was not included in his overall compensation, was worth $2.23 million at the end of the fiscal year, compared with $1.03 million the year before.
-By Bob Tita, Dow Jones Newswires; 312 750 4129;
Story Link: http://online.wsj.com/article/BT-CO-20120113-712811.html