Farm Equipment Manufacturers Association (FEMA) has reported that John Deere CEO Samuel Allen took a pay cut amid the company’s down financial cycle. Source: Agrimarketing
Allen’s compensation package was reduced by 7.8% to $US18.7 million, according to a proxy statement from the company.
The reduction comes as the firm tries to keep sales up while corn and soybean prices fall, cutting into farmers’ income and reducing their ability to invest in new equipment.
Deere also is exposed to the slowing economy in China as well as in Brazil, which is in a recession.
Sales at Deere fell to $US28.86 billion during its last fiscal year, which ended in October. That was down 20% from the prior year. Net income dropped 39% to $US1.94 billion.
Mr Allen’s pay dropped in part because the company awarded him $US5.6 million in stock during its last fiscal year, from $US6.6 million during the previous period.
His base pay of $US1.5 million remained unchanged.
Mr Allen’s compensation would have been bigger but the proxy statement shows he asked Deere’s board to reduce his non equity payout for the fiscal year by 25% to $US5.5 million.