Archer Daniels Midland (ADM) chief financial officer Vikram Luthar has been placed on administrative leave, according to widespread media reports, as the Chicago-based food processing company investigates accounting practices.
Reuters reports that ADM has appointed Ismael Roig, who has been with the company since 2004, as its interim CFO.
MarketWatch reports the decision to place Mr. Luthar on administrative leave comes in the wake of a Securities and Exchange Commission “voluntary” request for documents. ADM officials said outside counsel and the board audit committee are investigating accounting practices in the company’s nutrition segment, including intersegment transactions.
Reuters reports shares of ADM plunged 24% on Monday, the stock’s biggest one-day drop since 1929. After closing at $51.69 per share Monday, ADM shares were trading at $53.77 at midday Tuesday, an increase of just over 4%.
In December 2023, ADM announced plans to acquire two flavoring firms as part of a push to better shield itself from commodity price volatility.
The company plans to acquire Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavor ingredients and solutions, and United Kingdom-based FDL, a developer and producer of premium flavor and functional ingredient systems.
Both transactions are expected to complete in early 2024 and are subject to customary closing conditions and regulatory approvals.
ADM is a global leader in human and animal nutrition and operates several facilities in the greater Cedar Rapids area, including a corn dry mill, corn wet mill, cogeneration power plant, and trucking and railcar repair facilities.
