Form 4: ADM Director Acquires Stock Units in Planned Grant

Archer-Daniels-Midland Co director Terrell K. Crews acquired 520.819 stock units, increasing total beneficial ownership to 62,718.304 units.

Summary

• Terrell K. Crews, a Director at Archer-Daniels-Midland Co (ADM), acquired 520.819 stock units on September 10, 2025.
• These stock units were granted pursuant to the Archer-Daniels-Midland Company's Stock Unit Plan for Nonemployee Directors.
• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, satisfying Rule 10b5-1(c).
• Each stock unit has a conversion or exercise price of 1-for-1, meaning it represents one share of common stock.
• Following this acquisition, Mr. Crews directly beneficially owns a total of 62,718.304 stock units.
• The stock units vest or expire on the earlier of five years after the end of the calendar year of award/credit, or when Mr. Crews ceases to be a Board member, as per the plan terms.

Sentiment

Score: 7

Explanation: The acquisition of stock units by a director is generally a positive signal, indicating alignment of interests and confidence in the company's future, though it's a routine compensation event rather than a discretionary purchase.

Positives

• Director Terrell K. Crews increased his beneficial ownership in Archer-Daniels-Midland Co by acquiring 520.819 stock units, further aligning his interests with shareholders.
• The grant of stock units to a non-employee director is a standard component of compensation, indicating ongoing retention and motivation for board members.

Risks

• The stock units are subject to vesting conditions, including continued service on the Board of Directors, meaning they are not immediately liquid.
• The value of the stock units is tied to the future performance of Archer-Daniels-Midland Co's common stock, exposing the holder to market risk.

Future Outlook

The acquisition of stock units with a future transaction date (September 10, 2025) under a Rule 10b5-1 plan indicates a pre-planned equity grant or compensation event, reflecting a structured approach to director compensation and long-term incentive alignment.

Industry Context

Equity grants to non-employee directors are a standard practice across many industries, including the agricultural processing and food ingredient sector where ADM operates. This practice serves to align director interests with long-term shareholder value and is consistent with corporate governance best practices.

Comparison to Industry Standards

• The grant of stock units as part of non-employee director compensation is a common practice, comparable to compensation structures at peer companies such as Bunge Limited (BG) or other large agricultural commodity processors.
• The 1-for-1 conversion of stock units to common stock is standard for such equity awards.
• Vesting conditions tied to continued service on the board are typical for director equity compensation plans across various sectors.

Corporate Governance

Related Party Transactions

• The grant of stock units to Director Terrell K. Crews is a related-party transaction, executed under the company's established Stock Unit Plan for Nonemployee Directors and a Rule 10b5-1(c) plan.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholder value through equity ownership.
• Employees: No direct impact on employees, but reflects standard corporate governance practices regarding board compensation.

Next Steps

• The stock units will convert to common stock upon vesting, subject to the terms of the Archer-Daniels-Midland Company's Stock Unit Plan for Nonemployee Directors.
• Further Form 4 filings will be required for any future changes in beneficial ownership by Terrell K. Crews.

Key Dates

Recommendation

This Form 4 reports a routine grant of stock units to a non-employee director as part of their compensation, executed under a pre-planned 10b5-1 plan. While it indicates alignment of interests, it is not a discretionary open-market purchase and does not provide new fundamental information that would significantly alter an investment thesis for Archer-Daniels-Midland Co. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals.

Keywords

Archer-Daniels-Midland, ADM, Stock Units, Insider Transaction, Director Compensation, Equity Grant, Form 4, Beneficial Ownership, 10b5-1 Plan