ADM CFO Resigns Amidst DOJ Investigation Into Accounting Issues

Archer-Daniels-Midland (ADM.N) revealed the resignation of Chief Financial Officer (CFO) Vikram Luthar, effective September 30th. The departure comes amidst a cloud of scrutiny as the Department of Justice (DOJ) conducts investigations into accounting irregularities within ADM’s Nutrition division.

Luthar’s resignation agreement includes a cash performance incentive award for 2023 and shares linked to company performance. Until his departure date, he will continue to support ADM in a non-executive capacity, aiding in the transition as the company embarks on the search for a new CFO.

The backdrop to Luthar’s departure stems from ongoing accounting issues within ADM’s Nutrition division, prompting governmental investigations and the subsequent revision of six years of financial data.

ADM initiated an internal investigation into accounting practices within its smallest business unit, leading to Luthar’s administrative leave in January. CEO Juan Luciano emphasized that the decision to accept Luthar’s resignation was made after careful consideration of ADM’s future direction and positioning for success.

Luthar’s tenure at ADM, which began in 2004 after his transition from General Motors (GM.N), was marked by his instrumental role in steering the company’s growth trajectory. Under his leadership, ADM underwent a transformation from a grains trader to a diversified food ingredients and nutrition company.

This transformation yielded record earnings in 2022. However, recent market challenges have brought to light operational issues within the Nutrition segment, casting shadows on the company’s financial stability.

Source: WSJ