Tuesday, 07 November 2023 09:55

Mysterious departure!

Written by  Sudesh Kissun
Fonterra’s chief financial officer Neil Beaumont abruptly departed the co-op last week, leaving shareholders puzzled. Fonterra’s chief financial officer Neil Beaumont abruptly departed the co-op last week, leaving shareholders puzzled.

Fonterra's annual general meeting in Canterbury this week would have been Neil Beaumont's first as chief financial officer.

However, the co-op's top number cruncher abruptly departed last week, leaving shareholders puzzled. Fonterra chair Peter McBride will face questions around Beaumont's sudden departure at the AGM in Methven on Thursday (November 9).

Last week, the co-operative issued a statement to the NZ Stock Exchange, stating that Beaumont was leaving the co-operative and that his last day would be November 3.

No reason was given for his departure. Pointedly, Fonterra's statement had neither any appreciation for Beaumont's nine-month stint nor good wishes for the future.

Fonterra Co-operative Council, a watchdog holding the baord to account on behalf of shareholders, is "very surprised" by the announcement.

Council chair John Stevenson says councillors have received "plenty of questions" from farmers looking for more information. Many shareholders are speculating on the reasons for the short tenure within a senior executive position, he says.

"The council has no insight into the reasons for his departure," Stevenson told Rural News.

"The direction of our co-operative is positive. We are coming off the back of some strong financial results. Farmers will be looking for reassurance that this disruption does not affect the direction of travel."

Stevenson says the council will be asking questions of the board on behalf of its members.

Fonterra shareholder and Kaikohe farmer Richard Dampney, who has submitted four remits for the AGM this week on board representation, says he's keen to know why Beaumont lasted only nine months in the job. Dampney intends to question McBride and chief executive Miles Hurrell on Thursday.

"This has come out of the blue and, like me, shareholders are keen to know what happened," he told Rural News. "Did we pick the wrong man and did we force him to go?"

Another Fonterra shareholder Garry Reymer says the CFO's departure isn't a good look for the co-op.

"It's a concern: I note that in the shareholder council report they talk of the need for more transparency from the board," Reymer told Rural News.

"They also note the declining shareholder trust in Fonterra. This sort of thing will only increase the concerns in the shareholder base."

Simon Till, Fonterra's director capital markets, will act as CFO while the recruitment process is underway, the co-op told NZX.

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

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

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…

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…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter