Archer-Daniels-Midland’s CFO to Step Down Amid Accounting Concerns

In a significant development, Archer-Daniels-Midland (ADM.N) announced on Monday that Chief Financial Officer Vikram Luthar will resign from his position, effective September 30th. As part of his resignation agreement, Luthar will receive a cash performance incentive award for 2023 and shares tied to company performance. He will continue to support ADM in a non-executive capacity until his departure date, aiding in the transition as the company seeks a new CFO.

Luthar’s departure comes amidst the backdrop of accounting issues within ADM’s Nutrition division, which led to government investigations and the revision of six years of financial data. ADM had placed Luthar on administrative leave in January to conduct an internal investigation focused on accounting practices within its smallest business unit. CEO Juan Luciano emphasized that the decision was made after careful consideration of ADM’s future direction and positioning for success.

Luthar, who joined ADM from General Motors (GM.N) in 2004, played a key role in the company’s growth trajectory, particularly in its transition from a grains trader to a diversified food ingredients and nutrition company. Despite this transformation leading to record earnings in 2022, recent market challenges exposed operational issues within the Nutrition segment.

ADM’s corrective actions in March, addressing financial data inaccuracies, underscored the company’s commitment to transparency. While ADM shares experienced a slight decline on Monday, they remain below pre-accounting issue levels, reflecting ongoing market uncertainty. It’s worth noting that government investigations are not indicative of wrongdoing and may not result in charges.

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