3M’s Monish Patolawala named CFO at ADM

Archer-Daniels-Midland Co. (ADM) is working to recover from an accounting scandal by hiring Monish Patolawala, a 3M Co. executive, as its new Chief Financial Officer (CFO), with effect from August 1. This move aims to restore shareholder confidence after a turbulent period.

Patolawala’s appointment concludes six months of interim leadership in ADM’s finance department, following former CFO Vikram Luthar’s administrative leave and subsequent resignation, effective September 30. Luthar’s departure came amid an accounting investigation that significantly impacted ADM’s share value. Ismael Roig, President of ADM’s Europe, Middle East, and Africa region and the animal nutrition unit, has been serving as interim CFO.

According to Morningstar Inc. analyst Seth Goldstein, hiring an external candidate was a strategic move to distance ADM from its previous issues. Goldstein noted that Patolawala’s strong background makes him well-suited for the role, and his appointment signifies a new direction for the company’s accounting practices.

Patolawala joins ADM as it faces challenges in its nutrition unit and navigates a decline in crop prices and processing margins. The new CFO’s leadership marks a step towards stability following the scandal, which caused an $8 billion drop in ADM’s market value in one day. In March, ADM reported a $137 million impairment charge related to its animal nutrition business, easing investor concerns. The company remains under investigation by the SEC and DOJ.