Sharechat Logo

Fonterra freezes salaries for a quarter of its workforce

Wednesday 4th September 2019

Text too small?

Fonterra Dairy Cooperative has frozen salaries for about a quarter of its workforce earning more than $100,000 a year.

"Some tough calls are still needed to put us on the right path," chief executive Miles Hurrell said. A remuneration review will still occur for salaried employees earning under that level and there’s no impact on waged employees who are part of a collective agreement, he said. 

Fonterra is currently undergoing a full strategic review after reporting its first loss last year. It has signalled it expects to report a full-year loss next week of $590-675 million after writing down assets in Brazil, China, New Zealand and Australia.

The dairy exporter's annual report shows it employed 22,558 people worldwide at the end of July 2018. 

A total of 5,994 employees earned more than $100,000 at Fonterra in the 2018 year,  including 230 who no longer work for the cooperative. Of the total, 14 - including former CEO Theo Spierings - earned more than $1 million in New Zealand and another nine did overseas. One person, who no longer works at Fonterra, also pulled in a million-dollar salary. 

Spierings earned around $40 million in salary and bonuses during his seven years at the helm, which ended in July last year. 

Fonterra also said it wouldn't be paying bonuses for the annual short-term incentive scheme or sales incentive plan for the 2019 year. In the 2018 financial year, about 6,000 employees were eligible for short-term incentives. 

Fonterra said some business units, both in New Zealand and overseas, use sales incentive plans for market-facing sales and support teams. 

Units in the Fonterra Shareholder Fund were recently down 1.2 percent at $3.26. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Stocks Tumble, Havens Gain on Rising Virus Concern
25th February 2020 Morning Report
NZ dollar stalled amid ongoing coronavirus concern
Member growth delivers healthy results for nib New Zealand
The Australian Dollar Nears a Tipping Point Thanks to Ultra-Low Rates
With Gold Surging, Miners Face Payouts Versus Production Dilemma
24th February 2020 Morning Report
U.S. Dollar Nears a Critical Level That May Trigger a Buying Spree
21st February 2020 Morning Report
Tech Leads Stocks Lower on Virus Fears; Gold Gains

IRG See IRG research reports