ADM Executives, Angry Stockholders Face Off

Facing rebellious shareholders, embattled Archer-Daniels-Midland Co. executives Thursday skirted the issue of a federal price-fixing investigation and moved to boost sagging stock prices.

Despite announcements of a boost in the dividend and a buyback program, several shareholders left a fiery annual meeting angry that ADM provided few new details into the government’s antitrust probe of the nation’s largest grain processor.

Chairman Dwayne O. Andreas and the 17-member board were reelected as expected, despite some shareholders’ threats to vote against them. But, perhaps reflecting shareholder dissatisfaction, the directors received 80% of shares voted, lower than the usual 95% victory.

Dissident investors say ADM’s board, which includes 10 current or former company executives, is too cozy with management to review the matter.

At one point in the meeting, Ed Durkin, chairman of special projects for the carpenters union, which holds 770,000 shares, sought to speak over Andreas and was ignored. “This is telling us a lot about how this board runs this company,” Durkin said.

“This meeting, sir, runs according to my rules,” Andreas said.

Andreas’ reply met with applause, as did his announcement that the company had more than doubled its quarterly dividend, to 5 cents from 2.38 cents, and would buy back 25 million shares of its outstanding common stock.

Other shareholders who appeared angry were not given speaking time during the 25-minute question-and-answer session.

Andreas and other executives skirted the issue Thursday of the federal inquiry into allegations that ADM and several of its competitors agreed to fix prices on corn syrup, citric acid and lysine, a protein fed to livestock.

Andreas, who is also chief executive, has said auditors found no evidence of improper payments to executives. Company officials have said little else about the investigation.