Shareholder Sues Archer Daniels Midland over Misleading Executive Pay

Wednesday, June 23, 2010

Agricultural giant Archer Daniels Midland (ADM) failed to inform its shareholders that senior executives would receive $1.3 billion in compensation for last year—an amount representing 74% of the company’s 2009 net earnings, according to a

lawsuit

filed by shareholder Herbert Resnik. The payment was “so great that it not only constitutes waste, but it shocks the conscience,” says Resnik’s civil complaint.

 
Resnik also accuses ADM’s board of directors of misleading shareholders by telling them that executives’ compensation in excess of $1 million would be tax deductible. However, according to the complaint, due to “defects…misrepresentations and omissions in the proxy statement,” the bonuses “will not be tax-deductible.”
-Noel Brinkerhoff
 
Shareholder Says ADM Gave Away the Store (by Sean Kelly, Courthouse News Service)
Herbert Resnik v. Archer Daniels Midland (U.S. District Court, Delaware) (pdf)

Comments

Anonymous 13 years ago
I too am an employee at ADM or a colleague as Ms. Woertz likes to call us. At our "Global Town Hall" held last week, Ms. Woertz cleverly avoided answering the most popular question submitted that asked the simple question: How can a select few senior executives justify receiving bonuses of $1.3 billion when the other 28,000 employees, sorry colleagues, were given a lump sum amount and no bonus or increase in salary? Perhaps, Mr. Resnick should ask for a copy of Ms. Woertz’ performance at that meeting. If I wasn’t for a lack of trust and/or fear of retaliation, I would sign my name, as did Mr. McDonald, instead I simply sign it as Anonymous
William J. McDonald 13 years ago
Dear Sir, I have worked for ADM for 43 years this December. In those 43 years I have never seen a bonus of such a life changing amount. It is a shame when a new contract is drawn up at our location and we never see a reasonable increase in our salary. 43 YEARS with little increase, while that kind of money is being paid out in bonuses. Sincerely, William McDonald

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