AGCO Corp. chairman and chief executive Martin Richenhagen received a compensation package worth $9.26 million in 2007, rising 63 percent from the previous year thanks largely to a retention bonus valued at $2 million.

AGCO, a Duluth-based maker and distributor of agriculture equipment, reported compensation figures this week in a proxy filing with the Securities and Exchange Commission. It also set the annual shareholders meeting for April 24 at the company offices in Duluth.

NICK ARROYO/AJC (ENLARGE)

Under CEO Martin Richenhagen, AGCO's revenue rose 25 percent in 2007 to $6.8 million.

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The Atlanta Journal-Constitution calculates executive pay based on salary, non-equity incentives, the value of stock and options granted in that year, above-market returns on pension plans and other compensation, such as club memberships.

In 2007, Richenhagen received a $1 million base salary; $1.9 million in non-equity incentives; stock and stock appreciation rights valued at $6.2 million; and $137,312 in other compensation.

A major source of the increase over the previous year came through a retention bonus in restricted stock estimated to be worth $2 million. The stock vests over five years.

The company's board and executive compensation committee "approved this special award to recognize Mr. Richenhagen's outstanding performance and to provide a significant retention incentive," AGCO said in the filing.

AGCO's revenue rose 25 percent in 2007 to $6.8 million. Net income was $246 million in 2007, compared to a $65 million loss in 2006.