Vikram Luther, CFO of Archer Daniels-Midland (ADM), has resigned, as his soon-to-be former employer faces an investigation from the U.S. Department of Justice into its nutrition division’s finances. Luther’s resignation is effective September 30.
Despite the investigation causing the company to revise six years of financial data, the agreement between Luther and ADM involves a guarantee for Luther’s compensation. He will receive his cash performance incentive award for 2023 of nearly $750,000, and his performance share unit award for 2021.
Luther will be paid his base salary and benefits during the transition period of his departure as well. His position will continue as a “non-executive employee” who will be “available to assist the company and provide transitional support as needed,” according to the agreement.
The agreement also states Luther “agrees to reasonably cooperate” in “any matter with which the ADM colleague was involved or any existing or potential claim, investigation, administrative proceeding, lawsuit or other legal or business matter.”
Luther was placed on leave in January after an internal review of accounting practices. The company’s value experienced a substantial drop in share prices (24% in one day); a loss of value the 122-year-old company hadn’t seen since the Great Depression.
In March 2024, it was discovered that internal sales between the company’s business units were reported incorrectly. This, according to the company itself, resulted in an overstatement of an annual operating profit of the nutrition segment by 9.2%.
Luther has held 11 positions over 20 years at the company, according to LinkedIn. Ismael Roig, who has held president positions in various areas of the company throughout his tenure there, will continue to serve as interim CFO.
