News Fonterra
Spierings under fire for sky-high departure premium
Theo Spierings, the former CEO of Fonterra, received $4,6 million upon his departure, according to the new annual statements. In New Zealand, this amount raises big question marks, as he is held responsible for the fact that the dairy cooperative has entered difficult waters.
The Dutchman left last August, after having held various positions within Fonterra since 2009. In his last role as CEO, his annual salary was $2,7 million. Over the last 2 years, this amount increased to a sloppy $8 million due to various bonuses. When he left, he was given $4,6 million. According to Fonterra, this amount concerns the last part of his annual salary, including a remainder of the bonus for 2017.
Absurd amount
Shane Jones, the Minister for Regional Economic Development in New Zealand, thinks it is absurd that Spierings was given such a large amount when he left. This is because he is (jointly) responsible for Fonterra's current failure.
After all, New Zealand's largest company is heading for one for the second year in a row sample loss decreased, while in previous years it had always made a profit. The member dairy farmers can therefore whistle for their dividend this year.
Jones and the other ministers in New Zealand think it would be to Spierings' credit if he handed in part of his severance package. However, they do not expect it to come to that, because Spierings probably cannot be obliged to do so from a legal point of view.
Wouter Job
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