Crosspost: Archer-Daniels-Midland (ADM) cuts executive pay amid accounting investigations
How Archer-Daniels-Midland’s Board addressed compensation in light of internal investigation and regulatory probes
This is a cross-post from Deep Quarry, the newsletter I occasionally collaborate on with Olga Usvyatsky. If you value our work, please subscribe!
It was no April Fool’s joke. Macy’s said on Tuesday in its proxy filing that it would claw back more than $600,000 in cash bonuses from executives after a November 2024 accounting scandal led to some executives being overpaid. That’s because Macy’s tied executives’ cash bonuses to an earnings metric, adjusted EBITDA for 2023 was overstated by $81,089,497. Macy’s error correction for 2023 changed the overall payout under the adjusted EBITDA metric in the 2023 STI Plan from 60.47% to 51.59% of target.
As a consequence of this reduction, payouts to Covered Officers under the 2023 STI Plan attributable to adjusted EBITDA were determined by the CMD Committee to be $3,541,659, rather than $4,151,272, in the aggregate, resulting in erroneously awarded compensation of $609,613.
I will write more about the Macy’s executive pay correction later but, in the meantime, I want to give a shoutout to my University of Miami MAcc students who called it right in their case presentations when I visited in February.
On the road again: Antitrust in the news
I am traveling this week so, for now, just a shortie for everyone.
And now, after the paywall, more executive compensation news, this time for ADM, from my friend and frequent collaborator Olga Usvyatsky at Deep Quarry.
