Archer Daniels Midland (ADM) is a Fortune 35 firm specializing in food processing and distribution. They recently announced an accounting revision, together with their Chief Financial Officer’s resignation. The accounting revision specifically modified the profit distribution across ADM’s segments and showed that profits at ADM’s were previously overstated. Executive compensation at ADM was tied directly to the Nutrition segment’s performance. Essentially, each executive stood to gain $7.4 million in variable compensation from the misstatement. Archer Daniels Midland’s compensation plan unwittingly…
