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ADM hires 3M CFO amid government investigation

ADM hires 3M CFO amid government investigation

The central theses

  • Archer Daniels Midland hired 3M CFO Monish Patolalawala for the same position in the company.
  • The shutdown comes as ADM faces U.S. government investigations into accounting irregularities.
  • Patolawala’s departure from 3M was predicted by some analysts after the company hired an outside CEO in March.

Archer Daniels Midland (ADM) has appointed 3M (MMM) Chief Financial Officer (CFO) Monish Patolalawala as CFO, the company announced on Wednesday.

Patolawala’s move, which takes effect on August 1, provides new financial leadership to a company currently facing a U.S. government investigation into its accounting practices, which includes subpoenas of its employees by the Justice Department. He succeeds ADM’s interim CFO, Ismael Roig.

ADM shares recently rose 0.7 percent. 3M shares rose about 1 percent.

ADM’s previous CFO resigned in April

The agricultural commodities company launched an internal investigation into its nutrition division in January following a voluntary document request from the Securities and Exchange Commission (SEC). This prompted ADM to restate six years of financial data in March. Former CFO Vikram Luthar was placed on leave in January and later resigned in April.

Patolawala’s departure from 3M was predicted by some analysts after the company appointed Bill Brown as CEO in March. Reuters reported. At ADM, Patolawala will receive an initial annual base salary of $1.425 million, according to a regulatory filing.

Prior to 3M, Patolalawala worked for more than two decades at General Electric (GE), including five years as CFO of GE Healthcare (GEHC). He currently serves on the board of Biogen (BIIB).