A shareholder of agribusiness giant Archer-Daniels-Midland (ADM.N) has publicly called for the resignation of CEO Juan Luciano, citing a lack of transparency about internal accounting issues that sparked a criminal investigation.
In a LinkedIn post titled “Investor-misery has a name: ADM,” Hartwig Fuchs criticized Luciano for failing to address the company’s problems effectively. Fuchs, previously chairman of Alfred C. Toepfer International—an ADM-acquired firm—blamed the CEO for ADM’s poor performance, noting its stock has dropped nearly 30% this year.
“A German proverb says: The fish always stinks from the head,” Fuchs wrote, demanding clarity on the issues and improved communication to rebuild investor trust.
ADM amended its financial reports in March and November after uncovering improper recording of sales between its nutrition and core business units. The company also cut its 2024 profit outlook, citing operational challenges, slow demand, and policy uncertainty.
Federal prosecutors are investigating ADM for potential securities fraud and conspiracy. While government inquiries don’t confirm wrongdoing, the probe has intensified shareholder scrutiny.
ADM declined to comment on Fuchs’ post or the ongoing investigation. It remains unclear how many shares Fuchs owns.
Beyond the accounting scandal, ADM faces challenges from low crop prices, regulatory uncertainty in biofuels, and potential trade conflicts as President-elect Donald Trump prepares to take office in January.
“If the CEO cannot fully clear up the scandal, communicate transparently, regain investor trust, and protect the company from long-term damage, he has to go,” Fuchs asserted in his post.
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