Fonterra remuneration committee proposes 3% chair fee rise to $528,500

The recommended increase would add $15,500 to McBride’s annual remuneration. For other board directors, the committee proposes an additional $6,000 each year, bringing their fees to $214,000, an increase of 2.9%.

Directors heading permanent board committees would receive a supplementary payment of $41,000, up by $1,000. The proposed fee for chairing the audit, finance and risk committee is $56,500, an increase of $1,500.

The Directors’ Remuneration Committee consists of six elected shareholders. The notice for Fonterra’s annual meeting says the committee examined remuneration practices across New Zealand and Australia as part of its review.

Its assessment considered whether existing fees were sufficient to attract and retain highly skilled board members. The committee also took account of the substantial workload carried by directors.

The committee reaffirmed its preference for modest yearly adjustments to fees over stretches with no increases followed by sizeable rises. It used the same approach when considering remuneration for the Fonterra Co-operative Council.

For the council chairman, the recommendation is a $4,000 increase in the annual fee to $136,000, a rise of 3%. Other councillors would receive $44,000 a year, up by $1,500, or 3.5%.