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E.Central MN | Apparently the smooth talkers in the executive suites convinced ADM's board of directors to change the benchmarks on which their bonuses were determined. Instead of basing their bonus on the performance of the entire company, they switched to basing their bonus on the performance of a relatively small division that had exceptional performance (for a short while). I guess I wouldn't call it cooking the books unless they were engaged in some type of bogus inter-company sales to exaggerate the numbers their bonuses were calculated on. Executive compensation is typically a secret process by the board of directors to reward high performance by the executives, maybe the board of directors got snookered/maybe not. Occasionally board of directors will retro-actively alter the terms of the compensation package, but not often. They use the argument that it's only a miniscule amount in terms of company profit and reneging on compensation deals will make it harder for them to retain or recruit executives in the future. What they don't say is that quite often the directors are recommended by the CEO who also recommends the perks that the directors are given for showing up to the board meetings. | |
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ADM
