3M Co. is undergoing yet another leadership change as Chief Financial Officer Monish Patolawala announces his departure to take on the same role at Archer-Daniels-Midland Co. Patolawala, who has been with 3M for four years, played a key role in navigating the company through significant challenges, including the spinoff of its health care business and settling multiple billion-dollar lawsuits over contaminated drinking water. With the recent appointment of aerospace veteran Bill Brown as CEO, it is not uncommon for new external hire CEOs to bring in their own CFO to align with their leadership vision.
The departure of Patolawala comes as 3M initiates a succession process to identify his replacement, marking a new chapter in the company’s financial management. Analysts like Deane Dray from RBC Capital Markets see this as a common practice among new CEOs, highlighting the importance of having a finance executive that aligns with their strategic direction. Despite this shakeup, 3M’s stock closed up 2% on the news, signaling investor confidence in the company’s ability to navigate these leadership changes.
For Archer-Daniels-Midland Co., Patolawala’s appointment brings stability to the finance department after a period of interim leadership following an accounting investigation that led to the resignation of the former CFO. While challenges remain with ongoing investigations by regulatory bodies, like the SEC and DOJ, the appointment of Patolawala signals a new chapter for ADM as they aim to move past these hurdles and focus on driving growth in their agriculture supply business.
