Archer Daniels Midland (ADM) announced it has placed its CFO, Vikram Luthar, under administrative leave, effective immediately, following an investigation into the food processing company’s accounting practices. Ismael Roig, who has served at the company for the past five years, most recently as president of Europe, Middle East, and Africa (EMEA), has been named interim CFO amid the investigation.
In an SEC 8-K filing, ADM disclosed the leadership change, stating, “Mr. Luthar’s leave is pending an ongoing investigation being conducted by outside counsel for the company and the Board’s audit committee regarding certain accounting practices and procedures with respect to the company’s nutrition reporting segment, including as related to certain intersegment transactions.”
The investigation, conducted by ADM’s outside counsel as well as the Board’s Audit Committee, is in regards to “certain accounting practices and procedures with respect to ADM’s nutrition reporting segment, including as related to certain intersegment transactions,” according to the company’s press release. The investigation followed in response to the SEC’s voluntary document request.
“Pending the outcome of the investigation, the Board determined that it was advisable to place Mr. Luthar on administrative leave. The Board will continue to work in close coordination with ADM’s advisors to identify the best path forward and ensure ADM’s processes align with financial governance best practices,” Terry Crews, lead director, said.
With regards to Roig, ADM stated, “Roig, age 56, most recently served both as president of EMEA at the company, where he had oversight of all of the Company’s business activities in EMEA, and as president of animal nutrition, a position he was appointed to in late 2022. His previous roles include serving as president of Carbohydrates Solutions International and establishing Global BioSolutions.”
ADM plans to delay its Q4 earnings and 2023 full-year results amid the investigation and will update the timing of the releases “as soon as practicable,” according to the release.