ADM Executive Bonuses Delayed Amidst Accounting Probe, Leaked Memo Reveals: Report
Portfolio Pulse from Benzinga Neuro
Archer-Daniels-Midland Co (ADM) has postponed executive performance bonuses due to an ongoing investigation into its accounting practices, particularly in the nutrition segment. The delay follows the sidelining of the CFO and a significant drop in ADM shares by 24%, the largest since 1929. The full-year 2023 financial results release has also been delayed, with the SEC requesting information on the Nutrition reporting segment and intersegment transactions.
January 29, 2024 | 1:52 am
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NEGATIVE IMPACT
ADM's decision to delay executive bonuses and the ongoing SEC investigation into its accounting practices have led to a significant share price drop and could continue to impact investor confidence and stock performance in the short term.
The delay in executive bonuses and the ongoing SEC investigation suggest potential financial irregularities, which have historically led to negative investor sentiment and downward pressure on stock prices. The significant share price drop indicates a strong market reaction, and the postponement of the full-year financial results could further erode trust and lead to short-term volatility.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100