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
lawsuitfiled 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)
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