LINCOLN, Neb. (DTN) -- Archer Daniels Midland's (ADM) Chief Financial Officer Vikram Luthar will resign effective on Sept. 30, 2024, amid a federal investigation into the company's accounting practices.
ADM said in a filing Monday with the U.S. Securities and Exchange Commission that Luthar will receive an annual cash performance award of $743,419, as well as company shares for his 2021 performance.
Luthar is the top executive to leave the firm since ADM disclosed accounting problems in its nutrition division. The U.S. government initiated two investigations and was required to revise six years of financial reports.
Luthar was placed on administrative leave beginning in January 2024 when ADM launched an internal investigation. He joined ADM in 2004 as CFO of its nutrition division after a stint with General Motors. Luthar became ADM's overall CFO in 2022.
ADM reported in March 2024 that it found sales between company business units were reported incorrectly. This means, according to ADM, the company overstated its annual operating profit in the nutrition segment by 9.2%.
The company reported Monday that it reached a "transition agreement" with Luthar.
"Until such resignation date, Mr. Luthar will be available to assist the company and provide transitional support as needed as a non-executive employee," ADM said in a 10-K filing with the SEC.
"While employed during the transition period, Mr. Luthar will continue to be paid his base salary and be eligible to participate in the company's benefit plans subject to their terms."
As part of the resignation agreement, ADM said Luthar "agrees to reasonably cooperate" in connection with "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."
Reuters reported in March that current and former ADM employees received grand jury subpoenas from the U.S. Department of Justice, which typically order the production of documents or to provide testimony.
Todd Neeley can be reached at todd.neeley@dtn.com
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