CHICAGO, Dec 30 (Reuters) - A shareholder of
Archer-Daniels-Midland ( ADM ) 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.