8-KMaterial AgreementsCorporate ChangesOther Events+1

DEERE & CO 8-K Report, Material Agreement (Feb 24, 2005)

Filed February 24, 2005For Securities:DE

Summary

Deere & Company (DE) filed an 8-K on February 24, 2005, primarily to announce the re-approval of the John Deere Performance Bonus Plan by its stockholders at the annual meeting on February 23, 2005. This plan, originally approved in 1995, incentivizes approximately 15,500 salaried employees through annual cash bonuses tied to specific performance goals. The Compensation Committee of the Board administers the plan, setting performance metrics that can include a variety of financial and operational measures. For executive officers, these measures are designed to comply with IRS Section 162(m) for tax deductibility, with a maximum annual payout of $5,000,000 per participant. The filing also notes amendments to the company's bylaws regarding the scheduling and notice requirements for Board of Directors meetings.

Key Highlights

  • 1Stockholders re-approved the John Deere Performance Bonus Plan at the February 23, 2005 annual meeting.
  • 2The plan provides annual cash bonuses to approximately 15,500 eligible salaried employees.
  • 3Performance goals are set annually by the Compensation Committee and can be based on various company and business unit metrics.
  • 4Executive officer payouts are structured to comply with IRS Section 162(m) for tax deductibility.
  • 5The maximum annual bonus payout to any participant is capped at $5,000,000.
  • 6The company's Board of Directors amended bylaws concerning regular meeting dates, times, places, and notice requirements.
  • 7The filing also references a press release announcing an increase in the quarterly dividend to $0.31 per share.

Frequently Asked Questions

The primary purpose of the plan is to provide a meaningful incentive to salaried employees by offering annual cash bonuses that are directly linked to the achievement of specific performance goals set by the company. This aims to align employee efforts with the company's strategic objectives.

All full-time, salaried employees actively employed by Deere & Company during the company's fiscal year are eligible. The Compensation Committee annually determines which of these eligible employees will actually participate in the plan. Approximately 15,500 employees were anticipated to be eligible at the time of the stockholder re-approval.

In case of death, disability, retirement, or transfer to a non-participating unit, the award is prorated based on participation prior to termination. For any other type of termination, the award for the fiscal year of termination is forfeited, although the Compensation Committee has discretion to pay a partial award for the time employed during that year.

In the event of a change in control (defined by merger, dissolution, or significant stock acquisition), participants will receive the greater of an award based on actual performance up to that date or an award based on targeted performance. These awards are payable within thirty days of the change in control.