Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
The co-operative announced that St John will leave the Fonterra board on May 31, 2024 after serving for seven years.
Fonterra chairman Peter McBride says St John has made the decision in consideration of his workload and increase in governance commitments.
“I’d like to thank Scott for the time and energy he’s given Fonterra and its farmers. Scott has brought to the Board his vast knowledge of financial markets and passion for innovation,” says McBride.
St John is the chair of Fisher & Paykel Healthcare and serves on the boards of ANZ Bank, Mercury, and NEXT Foundation. He will step into the role of chair of Mercury from 1 January 2024.
He currently serves as a member of Fonterra’s audit, finance and risk committee, sustainability and innovation committee, and disclosure committee. He was also previously chair of the milk price panel for over six years.
“I’ve thoroughly enjoyed my time with Fonterra, including working with the board and management team through its strategic reset. The Co-op has seen a real turnaround in its performance and has a bright future. I look forward to seeing Fonterra’s continued success as it works to grow long-term value for farmers,” says Mr St John.
The Fonterra board will shortly commence a search process to replace St John and farmer shareholders will have an opportunity to ratify that appointment at the 2024 annual meeting.
