Archer-Daniels-Midland Co has announced a postponement in the payment of performance bonuses to select executives until the completion and audit of its financial statements, as revealed in a memo received by Reuters. This decision follows the recent sidelining of ADM’s chief financial officer and the initiation of an external investigation into accounting practices.
The inquiry is specifically directed at the nutrition segment, a relatively minor division of the grains trading giant’s operations that significantly impacted executive compensation. The delay affects compensation from ADM’s performance incentive plan for members of the executive council, including those who retired last year. While ADM declined to provide comments, the staff memo indicated that payments to other employees would proceed in March as per the company’s regular schedule.
The executive council comprises top executives and heads of various ADM businesses, with the exact number undisclosed. Following news of the accounting practices investigation, ADM shares plummeted by 24% on January 22, marking the most significant decline since 1929, according to the Center for Research in Security Prices. Furthermore, ADM has deferred the release of its full-year 2023 financial results without specifying a new date.