Timely Stock Sale Nets Archer Daniels Midland CEO $14 Million
A timely stock sale saved the top Archer-Daniel-Midland Co. executive up to $2 million this month.
CEO Juan Luciano acquired and sold 284,531 shares of his company on September 9, according to a Security and Exchange Commission Filing. As part of a board-approved executive compensation plan, Luciano purchased the stock at a discount – approximately $39.34 per share.
Luciano receives $91.20 per share. All in all, the move earned him around $14.8 million.
The CEO wouldn’t have made so much money if he had waited to execute the stock options. ADM’s stock price fell rapidly on September 12, the next trading day, falling to $87.09. The stock continued to fall throughout the week, hitting $84.33 on Friday afternoon.
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If Luciano had sold at the bottom of the decline, his trades would have earned him about $13.6 million, about $1.2 million less than what he received. The value would have dropped another $800,000 by the end of the week.
Chicago-based ADM, which processes and sells commodities like corn and soybeans and has several facilities in Iowa, has performed well in the stock market this year. The stock price rose 30% in 2022 and hit an all-time high of $98.22 per share on April 20.
Luciano, CEO since 2015, received about $23.5 million last year. Of his compensation, about two-thirds came in the form of ADM shares.
The board has agreed to pay stock and other bonuses to executives based on the company’s achievement of certain financial goals, such as return on investment.