Deere Reshuffles Senior Staff & Announces Expansion of Hydraulic Cylinders Manufacturing Capacity

The retirement of two senior executives has prompted Deere & Co into a management reshuffle including the promotion of Rajesh Kalathur to chief financial officer, paying up to $4 million a year.

The maker of John Deere farm equipment said that David Everitt, president at the agriculture and turf division and a lifelong company employee, and general counsel James Jenkins had “graciously agreed to communicate their retirement plans early”.

The early notice had allowed Deere to “begin a transition of their key roles”, and plan management changes — the highest profile being Kalathur’s promotion from the position of deputy financial officer.

Kalathur will earn a base salary of $433,000 in his new post, with an annual bonus of $1.8 to $3.5 million, with eligibility for further perks on top. He will succeed James Field, who has held the post for the last three of his 18 years at Deere, and who in the group’s 2010 financial year earned a total of $3.65 million, including a basic salary of $524,000, filings show.

This put Field behind senior colleagues including Everitt, who earned a total of $4.70 million, Jenkins, with $3.91 million, and Samuel Allen, the Deere chairman and chief executive, with a package totalling $13.3 million.

Field will, as of September 1, take on most of Everitt’s responsibilities at the agriculture and turf business. Jenkins will be replaced as general counsel by Mary Jones, as of the start of 2013.

The company also recently announced it will invest $47 million to expand manufacturing capacity in its Moline, IL cylinder operation.

“John Deere’s continued global growth requires the company to invest in our manufacturing operations,” said Mark Von Pentz, president of Deere’s Worldwide Agriculture & Turf Division.

Deere said the investment will result in significant upgrades in machining tools at the cylinder operations but will not require an addition to the physical building. No jobs will be added as a direct result of the investment.