8-KLeadership ChangesRegulation FDExhibits & Filings

Archer-Daniels-Midland Co 8-K Report, Executive Changes (Jul 10, 2024)

Filed July 10, 2024For Securities:ADM

Summary

Archer-Daniels-Midland Company (ADM) has announced a significant leadership change in its financial department. Effective August 1, 2024, Monish Patolawala will join the company as Executive Vice President and Chief Financial Officer (CFO), succeeding Ismael Roig, who has been serving in an interim capacity. Mr. Patolawala brings a wealth of experience from his previous roles at 3M Company, including President and CFO, and prior executive finance positions at GE Healthcare and GE Transportation. The appointment is accompanied by a comprehensive compensation package designed to attract Mr. Patolawala and replace incentives forfeited from his previous employer. This includes a substantial base salary, annual bonus and equity awards, and significant one-time make-whole awards in both cash and equity. Investors should note the structure of these awards, particularly the performance stock units and restricted stock units, as they represent a considerable investment in the company's future financial leadership.

Key Highlights

  • 1Monish Patolawala appointed as the new Executive Vice President and Chief Financial Officer (CFO), effective August 1, 2024.
  • 2Mr. Patolawala has extensive prior experience as CFO and President at 3M Company, and previous finance leadership roles at GE Healthcare and GE Transportation.
  • 3Ismael Roig will transition from Interim CFO back to his roles as President of EMEA and President of Animal Nutrition.
  • 4Patolawala's compensation package includes a $1,425,000 annual base salary.
  • 5Significant annual incentive and equity awards are part of the compensation, with a target bonus of $1,923,750 and an equity grant valued at approximately $6,950,000.
  • 6One-time make-whole awards totaling $1,400,000 in cash and approximately $10,000,000 in equity (RSUs) are intended to compensate for forfeited prior employer incentives.
  • 7The equity portion of the make-whole award has a specific vesting schedule over 18 months with potential acceleration clauses.

Frequently Asked Questions

Monish Patolawala has been appointed as the new Executive Vice President and Chief Financial Officer (CFO) of Archer-Daniels-Midland Company. His appointment is effective August 1, 2024.

Mr. Patolawala has a strong financial background, most recently serving as President and Chief Financial Officer of 3M Company. Prior to that, he held various senior finance roles at 3M, and before joining 3M, he was CFO of GE Healthcare and held finance positions at GE Transportation.

Mr. Patolawala's compensation is substantial, reflecting his experience and the company's desire to attract him. His initial annual base salary is $1,425,000, with a target annual bonus opportunity of $1,923,750 and an equity award valued at approximately $6,950,000. Additionally, there are significant one-time make-whole awards of $1,400,000 in cash and approximately $10,000,000 in equity to compensate for incentives he forfeited from his previous employer.

Ismael Roig, who served as Interim CFO, will continue his roles as President of EMEA and President of Animal Nutrition for Archer-Daniels-Midland Company.