Archer-Daniels-Midland Co (ADM) CEO Juan Luciano’s compensation for 2023 amounted to $24.4 million, reflecting a 1% decrease from the prior year, as revealed in a securities filing on Wednesday. This disclosure follows an internal investigation into the company’s financial reports, prompted by past accounting issues that led to two government investigations and necessitated the revision of six years of financial data.
ADM had deferred paying bonuses to some executives until the completion of the internal investigation and the audit of its financial statements, which were published on March 12. Luciano’s compensation included a slight increase in base salary and company stock awards valued at $17.920 million.
The company paid $32.9 million in long-term incentives to its top executives, with 60% of the incentives comprising performance share units (PSUs). Despite the accounting issues and revisions to financial statements, most senior executives received the long-term PSUs they were awarded in 2021 at 100% of the targeted payout, as detailed in Wednesday’s proxy statement.
ADM has replaced the Nutrition-focused performance metric and tied half of long-term compensation to the company’s adjusted earnings per share instead. The Board’s Compensation Committee has yet to decide on PSU compensation for CFO Vikram Luthar, who is on administrative leave.
Additionally, ADM confirmed that the revised financial statements would not impact previous executive compensation payouts, with the company opting against providing an additional boost to long-term compensation based on favorable shareholder returns in 2023.