fbpx
Print this page
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

Liquid or powder?

Fonterra, the biggest exporter of milk powder to Sri Lanka, may have a new battle on its hands.

Tariffs backfire

OPINION: New Zealand, and in particular Fonterra, has come under scrutiny in Sri Lanka for taking home the lion's share of the country's spend on imported powdered milk.

Cheesed off

OPINION: Fonterra's plan to trademark Maori words used for its Kapiti cheese range is cheesing off some in Maoridom.

National

Machinery & Products

Effluent injection goes XL

Dutch effluent specialist Vredo is testing 15 and 18-metre wide slurry injection rigs for the upcoming 2022 spreading season.

Choosing the right pump

Choosing the right pump for an effluent system is the key to ensuring a system works well and gives many…

Spreading muck with ease

Palmerston North headquartered Strautmann Hopkins Ltd imports the extensive range of Strautmann Muck Spreaders for farmers and contractors, built by…