Hurrell Resignation: No Bonus or Golden Handshake for Fonterra CEO

Fonterra is rejecting New Zealand First's claim that outgoing chief executive Miles Hurrell is in line for a 'golden handshake'. The co-operative says Hurrell, who announced his resignation last week and will serve out his six-month notice, won't receive any exit payments in addition to his annual remuneration package. Hurrell served as Fonterra chief executive for eight years. He is entitled to his base salary, short-term incentive calculated based on the group scorecard, and long-term alignment rights. Fonterra says there isn't any bonus payment for management team members tied to the completion of the $4.2 billion sale of the consumer and related businesses to Lactalis. The sale is unconditional and will be completed by the end of this month. Under the deal, Lactalis will take over iconic NZ brands like Anchor, Mainland and Kapiti. NZ First Leader Winston Peters, who opposed the sale, claimed in a message on X (formerly Twitter) that he had predicted the resignation of Hurrell once the divestment was complete. "We said this exact thing would happen in our open letter to farmers last year - he of course denied it." Peters accused Hurrell of selling off "almosy every consumer brand since he started, leaving Fonterra as a commodity price taker, not a market maker". "Their decision leaves serious questions for New Zealand about what we must do to protect dairy manufacturing in our country as a result of Fonterra's dereliction of duty." Peters says when Hurrell's predecessor, the late Theo Spierings resigned he was paid out "a ridiculous $4.67 million after being paid a total of $43 million in just seven years in the role". "How much will Hurrell be paid out?" Peters also claimed that recently Fonterra announced deep job cuts. The co-operative says this isn't true and noted that, as per their usual practice, a breakdown of the CEO's full remuneration will be included in the next annual report. "Insiders are saying they are ripping cost out of the business to make up for a lesser sale price," says Peters. He took a swipe at media, urging them to start asking the right questions instead of printing Fonterra's press releases for them. "And when will they understand that Fonterra has gone from a propped-up nationalist company to a sell-out globalist company." #Fonterra #Miles_Hurrell

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