Archer-Daniels-Midland Co. plans to slash Chief Executive Officer Juan Luciano's annual cash bonus and laid out a new policy to claw back long-term awards in a bid to "ensure accountability" more than a year after an accounting scandal sent the commodity-trading giant's shares tumbling.
Luciano is due to receive a 2024 bonus of about $1.2 million, less than half of his target of nearly $3 million, according to a
The move comes after ADM adjusted years of financial results due to errors in the way it reported transactions between business units. When the company announced the accounting problems in January 2024, the news erased more than
ADM's board determined that it was appropriate to exercise "negative discretion" to shrink the payout percentage for cash incentive awards, the filing stated. The discretion was applied to the company executives "who were in relevant leadership positions during the applicable period." That's despite ADM's conclusion that no executive was found to be engaged in improper conduct.
Vikram Luthar, the former chief financial officer, will receive zero cash bonus. He resigned in September, before the end of the fiscal year.
In addition, the company laid out a new policy for recouping or forfeiting equity incentive awards, saying it could claw back stock awards if an individual engages in any prohibited conduct, even if his or her employment is not terminated. "Our approach to recoupment of long-term incentive compensation reflects the company's commitment to protecting stockholder value," ADM said.
