Tuesday, 29 November 2016 10:55

No payrise for Fonterra directors

Written by  Sudesh Kissun
Fonterra chairman John Wilson. Fonterra chairman John Wilson.

Fonterra directors and shareholder councillors will go without a pay rise for a third straight year.

Though the director remunerations committee has signalled a pay rise is on the cards next year, it recommends director and councillor fees remain unchanged for 2016-17.

Chairman John Wilson gets $405,000 annual fees, directors get $165,000 and board committee chairmen are entitled to an extra $31,000. Fonterra Shareholders Council chairman Duncan Coull gets $90,000, his deputy $55,550 and councillors $30,000 each.

Fonterra shareholders will vote on the proposal at the co-op’s annual meeting at Darfield next week (Dec 8).

The remunerations committee has six shareholders and is chaired by Waikato farmer David Gasquoine; the committee met in August to review board and councillor fees.

According to Fonterra’s notice of meeting, the committee reviewed the market trends for director fees and the workload expectations for Fonterra directors; and it discussed relativities between different roles, the nature of the company and the challenging conditions now facing shareholders.

“The committee believes it is important to set realistic fee levels, having particular regard to the broader market and the workload requirements, to ensure skilled directors are attracted and retained on the board.

“The committee notes that the directors’ remuneration was not increased in 2014 and 2015, appropriate given the challenging economic conditions experienced by shareholders. Given the lengthy duration of the challenging conditions, it is again appropriate for remuneration levels to remain unchanged in the current year.”

But the committee notes that to attract and retain the best director candidates, and to align with the market, increases in remuneration will be required in the coming years.

On Shareholder Council fees, the committee foreshadowed a review of council wards with a view to reducing the number of wards and councillors.

“The committee recognises that if the number of Shareholders Council wards is reduced there may be an impact on councillors’ workload and expectations that may need to be addressed by the committee in 2017 when assessing appropriate remuneration levels.”

The annual meeting will also ratify the appointment of three independent directors -- sitting directors Simon Israel and David Jackson and new appointee Scott St John.

St John is a director of Fisher and Paykel Healthcare and the incoming chancellor of the University of Auckland.

More like this

No backing down

OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving late.' 'The portions are wrong.' 'I wanted caviar.'

Fonterra mulls options - sale or IPO

An outright sale of Fonterra’s global consumer business is more likely than a float, says Forsyth Barr senior analyst equities, Matt Montgomerie.

Fonterra updates earnings

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

Featured

High commodity prices, farmer optimism bode well for event

The 2025 South Island Agricultural Field Days (SIAFD) chairman, Rangiora farmer Andrew Stewart, is predicting a successful event on the back of good news coming out of the farming sector and with it a greater level of optimism among farmers.

Accident triggers traffic alert in barns, sheds

WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers  the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

National

Miraka CEO steps down

The chief executive of Taupo-based dairy company, Miraka – Karl Gradon - has stepped down from the role for personal…

Machinery & Products

Bigger but not numb

When you compare a RAM 1500 or Chevrolet Silverado to a Ford Ranger or a Toyota Hilux, you will understand…

Good just got great

Already well respected in the UTV sector for performance, reliability and a competitive price point, CFMOTO has upped the ante…

Nedap NZ launch

Livestock management tech company Nedap has launched Nedap New Zealand.

» Latest Print Issues Online

Milking It

O Canada

OPINION: Donald Trump's focus on Canada is causing concern for the country’s dairy farmers.

Plant-based fad

OPINION: The fact that plant-based dairy is struggling to gain a market foothold isn’t deterring new entrants.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter