Investor Calls for ADM CEO’s Resignation Amid Accounting Scandal and Stock Decline

A shareholder of Archer-Daniels-Midland (ADM) has urged the company’s CEO, Juan Luciano, to step down over his handling of internal accounting issues that have triggered a criminal investigation. In a LinkedIn post titled “Investor-misery has a name: ADM,” Hartwig Fuchs criticized Luciano for failing to adequately inform investors about the problems and their implications.

Fuchs, a former board chairman of Alfred C. Toepfer International—a German trading firm in which ADM held a majority stake before acquiring it entirely in 2014—expressed his frustration with ADM’s leadership. Referring to a German proverb, he remarked that “the fish always stinks from the head,” implying that the responsibility for the company’s troubles lay with its leadership.

ADM has declined to comment on Fuchs’ statements, and it remains unclear how many ADM shares Fuchs owns.

The controversy stems from ADM’s need to restate years of financial reports in March and November after identifying improper accounting practices related to sales between its nutrition division and other core business units. These revelations forced the company to lower its 2024 profit forecast, citing internal operational challenges, weak demand, and policy uncertainties.

Federal prosecutors have since intensified their investigation, exploring whether ADM or its employees committed crimes such as securities fraud or conspiracy. While government investigations do not necessarily imply wrongdoing, the inquiries have added to investor unease. A spokesperson for the U.S. Attorney’s Office in Manhattan declined to comment on the matter.

In his LinkedIn post, Fuchs stated that ADM’s stock, which has fallen nearly 30% over the past year, has been the worst performer in his portfolio. He argued that Luciano’s inability to quickly address the scandal, clearly communicate the underlying issues, and restore investor trust had caused long-term damage to the company. Fuchs concluded that if the CEO cannot resolve the situation swiftly and transparently, he should step down.

ADM faces additional challenges beyond the accounting controversy, including low crop prices, regulatory uncertainty around biofuels, and the potential for a U.S.-China trade conflict that could disrupt global markets early next year as President-elect Donald Trump takes office.

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