Tuesday, 16 October 2012 16:33

$8.2m payout not a ‘golden parachute’

Written by 

FONTERRA CHAIRMAN Henry van der Heyden says the $8.2 million paid out to former chief executive Andrew Ferrier is not a ‘golden parachute’ deal. It is instead related to Ferrier’s performance during his eight-year stint at the co-op.

In its 2011-12 annual results, Fonterra revealed a payment of $8.2m to a former employee and van der Heyden last month confirmed to journalists it was Ferrier’s final payment.

Last week van der Heyden, chief executive Theo Spierings, chairman-elect John Wilson and Fonterra Shareholders Council chairman Ian Brown fronted eight shareholder meetings around the country. Turnout was poor: an average of 80 farmers at each. The meetings were called to give farmers the big picture of 2011-12 accounts.

Van der Heyden attended three meetings: at Invercargill, Ashburton and Hawera. He told Dairy News Ferrier’s final payment was part of his opening address at each meeting. “I explained in a bit more detail the final payment and made it clear it has nothing to do with a golden parachute. It’s a lot of money but it has been accrued and included short-term and long-term incentives.”

TAF (trading among farmers) and Horizons Regional Council’s controversial One Plan also came up for discussion.

Brown conveyed his council’s decision to pass the fifth and final TAF precondition, giving the board a mandate to proceed with the launch of TAF.  The fifth TAF precondition was the support of at least 50% of the Shareholders’ Council.

Van der Heyden says there were no negative comments on TAF. “It seems most farmers have accepted the June 25 vote and want us to get on with it.”

Wilson explained to farmers the board’s decision to reintroduce a resolution seeking constitutional changes and tightening limits on the size of the Fonterra Shareholders Fund.

Van der Heyden says the board is “not changing one word” in the resolution that narrowly failed to get the 75% vote required.

On One Plan, van der Heyden says farmers raised concerns about how it would impact farming in their regions. Fonterra has accepted an Environment Court decision to uphold strong rules designed to protect the environment and control land use. However, Federated Farmers has filed an appeal.

According to van der Heyden, the dairy industry needs a coordinated strategy on sustainability. “We’re a little behind the eight ball here but sustainability is on Fonterra’s agenda. We believe the future should be less about debate and more about Fonterra being at the decision table.”

Van der Heyden says decisions on sustainability must be in the interest of New Zealand and Fonterra wants to play a part at the decision-making level.

More like this

Fonterra trims board size

Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.

Returns 'not good enough'

Fonterra leaders are making their case for offloading the co-operative's $3 billion consumer business, noting that its return on capital has been nowhere near respectable.

Record milk price!

A record farmgate milk price for Fonterra shareholders is all but confirmed for this season.

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter