Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

ADM CFO to resign as company faces US government investigation

Published 04/22/2024, 06:28 PM
Updated 04/23/2024, 01:36 PM
© Reuters. FILE PHOTO: Archer Daniels Midland Co (ADM) logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By Karl Plume and Ana Mano

(Reuters) - Grain trader Archer-Daniels-Midland said on Monday that Chief Financial Officer Vikram Luthar will resign from his role effective Sept. 30.

Luthar is the highest-level executive to leave the firm since it disclosed accounting issues within its Nutrition division that later triggered two government investigations and forced it to revise six years of financial data.

ADM had put Luthar on administrative leave in January as it launched an internal investigation focused on accounting practices involving the smallest of its three business units.

The company said Luthar will receive $743,419 in cash performance incentive award for 2023 and shares awarded in 2021 that were tied to company performance. He will remain at ADM in a nonexecutive capacity until his resignation date to "provide transitional support" as the company searches for a new CFO, ADM said in a U.S. Securities and Exchange Commission filing.

"The decision to move forward in this direction was made after careful consideration of the future of our company and how to best position ADM for success," CEO Juan Luciano said in an internal memo seen by Reuters.

Luthar joined ADM from General Motors (NYSE:GM) in 2004, rising to become the CFO of ADM's Nutrition unit in 2020 and later to company CFO in 2022.

He oversaw one of ADM's most explosive periods of growth as the more than century-old grains merchant shifted from a crop trader and processor to a diversified food ingredients and nutrition company. The transition appealed to investors and helped ADM boost earnings to record highs in 2022.

But a string of market shocks exposed some growing pains in the new division.

In March, ADM corrected six years of financial data after an internal investigation found some sales between business units within the company were not recorded properly. ADM said it had overstated annual operating profit in the Nutrition segment by as much as 9.2%.

© Reuters. FILE PHOTO: Archer Daniels Midland Co (ADM) logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

ADM shares closed down slightly on Monday and remain around 8% below levels just before news of the accounting issues surfaced in January.

Government investigations are not evidence of wrongdoing and do not necessarily result in charges.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.