Fonterra Board Pay Rise: Chair Fee Up to $528,500

The co-operative’s Directors’ Remuneration Committee (DRC) is recommending that Fonterra chair Peter McBride gets a $15,500 bump to his annual fee, while directors get an extra $6000.

If approved by shareholders at the co-op’s annual meeting in Hamilton next month, the chairman’s remuneration will rise 3% to $528,500/annum.

Director fees will rise 2.9% to $214,000. Directors who chair permanent board committees will get an extra $41,000 – an increase of $1000.

The chair of the audit, finance and risk committee will get $56,500, a jump of $1500.

The DRC comprises six elected shareholders. According to the notice for Fonterra’s annual general meeting, the committee reviewed remuneration practices in New Zealand and Australia.

It considered whether current remuneration levels were appropriate to ensure highly skilled directors were attracted and retained on the board, noting the substantial director workload.

The DRC confirmed that small incremental annual increases in fees continued to be its preferred approach, rather than having periods of no increase followed by large uplifts.

It applied the same rule for Fonterra Co-operative Council remuneration.

It recommends that the council chair’s annual fee rise 3% - by $4000 to $136,000.

Councillors will get a 3.5% rise – an increase of $1500 to $44,000.

Fonterra’s AGM will be held at Mystery Creek, Hamilton, on November 12.