Carl Plum and Ana Mano
(Reuters) – Grain trader Archer-Daniels-Midland said on Monday that chief financial officer Vikram Luthar will step down effective Sept. 30.
Luthar is a senior executive who left the firm because it revealed accounting problems in its food division that later prompted two government investigations and forced the company to restate six years of financial data.
In January, ADM placed Luthar on administrative leave as it launched an internal investigation into accounting practices affecting the smallest of its three business units.
The company said Luthar will receive $743,419 in cash awards for performance in 2023 and stock awards in 2021 that were tied to the company’s performance. He will remain with ADM in a non-executive role until his resignation date to “provide transition support” while the company searches for a new chief financial officer, ADM said in a filing with the U.S. Securities and Exchange Commission.
“The decision to move forward in this direction was made after careful consideration of the future of our company and how best to position ADM for success,” CEO Juan Luciano said in an internal memo seen by Reuters.
Luthar joined ADM from General Motors (NYSE:) in 2004, rising to the position of CFO of ADM’s Nutrition Division in 2020 and then to the company’s CFO in 2022.
He oversaw one of ADM’s most explosive periods of growth as the more than century-old grain merchant transformed from a crop merchant and processor into a diversified food ingredients and nutrition company. The move pleased investors and helped ADM boost earnings to a record level in 2022.
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However, a series of market turmoil revealed some growing pains in the new division.
In March, ADM adjusted six years of financial data after an internal investigation found that some sales between business units within the company were not properly recorded. ADM said it overstated full-year operating profit in its nutrition segment by as much as 9.2%.
ADM shares closed slightly lower on Monday and remain about 8% below levels just before news of accounting problems emerged in January.
Government investigations are not evidence of wrongdoing and do not necessarily lead to charges.