Sharechat Logo

Fonterra board starts planning chair succession

Friday 20th September 2019

Text too small?

Fonterra Cooperative Group's board has started thinking about who should lead the country's dominant dairy processor through its new strategy, but that won't necessarily see John Monaghan leave. 

Independent director Simon Israel will step down from the board at this year's annual meeting in November, and with chair Monaghan scheduled to retire by rotation in 2020, Fonterra's directors will start work on who will oversee the new direction. 

"Having seen through the introduction of our new strategy, operating model, and with our divestment and debt reduction efforts well progressed, I will be working with the board in 2020 to facilitate chair succession," Monaghan said. "The timeline for that succession will be agreed by the board nearer to the time."  

Mongahan is a farmer-elected director and joined the board in 2008. He was last re-elected in 2017 and took over as chair last year when John Wilson retired due to ill health. 

A Fonterra spokesman said there is no indication whether Monaghan will retire or seek re-election, but a conversation about the different options is underway. "The outcome definitely should not read to you that he is retiring and walking away," he said. 

Fonterra said Israel’s decision to leave is part of a planned succession and the need to phase the refresh of the cooperative’s independent directors. 

He was appointed in 2013 and is currently a member of Fonterra’s appointments and remuneration committee.

Based in Singapore, Israel has contributed valuable insights from his 39 years of business experience in Asia, Fonterra said. He is currently the chairman of Singapore Telecommunications and chairman of Singapore Post.  

Monaghan said Israel had been a "real asset" to the board during this six-year term.

A replacement for Israel will be brought onto the board at an appropriate time and farmer-owners would have the opportunity to ratify that appointment at the 2020 annual meeting, Fonterra said.

Directors Andy Macfarlane and Donna Smit are seeking re-election at this year's annual meeting. Pharmaceuticals executive Philipp Haas and former corporate lawyer Cathy Quinn were recommended by Fonterra's independent selection panel process.

Units in the Fonterra Shareholders' Fund last traded down 0.6 percent at $3.18. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Rio Tinto decision following strategic review of Tiwai
Contact says smelter closure is ‘disappointing’
South Port (SPN) Statement on NZAS Tiwai Point Aluminium Smelter Closure
Rio Tinto announcement on Tiwai Aluminium Smelter
Me Today announces equity raising to accelerate growth
Scott Technology Trading Update; Rising to the COVID Challenge
New non-binding indicative offer received from apvg, shareholder meeting deferred
U.S. Added 4.8 Million Jobs in June as Reopened Businesses Rehired
Auditors have a duty to be alert to fraud
Strong sales recovery but uncertainty remains over economic outlook and potential second wave of COVID-19

IRG See IRG research reports