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Sunday, 19 January 2025 15:16 posted by pxj
By P.J. Huffstutter
CHICAGO, Dec 30 (Reuters) - A shareholder
of Archer-Daniels-Midland is pressing the company's CEO to resign for failing
to clearly tell investors about problems with its internal accounting practices that have
sparked a criminal investigation first reported by Reuters.
In a LinkedIn post entitled "Investor-misery has a name: ADM," Hartwig Fuchs said ADM was the worst
stock in his portfolio this year and blamed ADM Chief Executive Juan Luciano.
Fuchs was the board chairman of German trading firm Alfred C.
Toepfer International when ADM owned a majority stake in the firm.
Fuchs left Toepfer in 2009 and Chicago-based ADM acquired it in 2014.
"A German proverb says: The fish always stinks from the head," Fuchs wrote
in his column, dated Sunday.
ADM could not immediately be reached for comment on Monday afternoon.
ADM was forced to amend years of financial reporting in March and November after discovering sales between its
nutrition business and other core units were not recorded properly.
The company cut its 2024 profit outlook last month, citing policy
uncertainty, slow demand and "internal operational challenges."
Federal prosecutors in recent months have expanded their
inquiries into whether ADM or its employees committed crimes including securities fraud and conspiracy, according
to subpoenas reviewed by Reuters and people familiar with the probe.
A spokesperson for the U.S. Attorney's Office in Manhattan on Monday declined to comment on the investigation.
ADM's stock price is down nearly 30% from a year ago, and
ADM's shareholders, including Fuchs, are asking questions and pointing fingers as to who is to blame.
"If a highly paid CEO of such an important company cannot manage to provide clarity within a few months - i.e. fully clear up the scandal, comunicate (sic) with full Transparency about what went wrong and what will be done in the future, regain investors trust and, above all, protect the company from long-term damage - then he has to go,"
Fuchs wrote in his post.
ADM is facing other headwinds including low crop prices, uncertainty around biofuels regulations and
a possible tariff battle between the United States and China
that could upend global trade flows as soon as January, after President-elect Donald Trump takes
office. (Reporting By P.J. Huffstutter in Chicago; Additional reporting by Chris Prentice in New
York and Karl Plume in Chicago; Editing by Chris Reese) -
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