Mystery Fonterra exec gets $3.7m payout

A departing Fonterra executive has pipped chief executive Andrew Ferrier's take-home salary, receiving total payments of up to $3.72 million.

The highest payment to any employee at the world's largest dairy exporter was either terminated or retired during the 2009 financial year, according to the company's annual report.

Payments triggered at departure netted that employee between $3.71 million and $3.72 million, against Ferrier's pay of up to $3.63 million, the report says.

Among top executives who've left Fonterra this year were chief financial officer Guy Cowan with five years' service and director of milk supply Barry Harris who spent four years with the company.

A 28-year veteran and managing director of China through the SanLu crisis, Bob Turner, also left the company. A total of six people left the company with final payouts of more than a million dollars this year, compared to five in 2008.

Group general manager of human resources Jennifer Kerr declined to put salaries to names, but confirmed the departing individual was contractually entitled to their final pay-cheque.

Ferrier's pay packet appears to have declined to a band of between $3.62 million and $3.63 million, down from $3.98 million a year ago.

In June, Fonterra announced a freeze on nine executives' salaries, including the chief executive's, which is set to last until October next year.

Fonterra has been faced with a tough 12 months as the global financial crisis sapped demand for premium dairy products and an ill-fated entry into China eroded the company's bottom line.

After a record payment to its shareholders of $7.66 per kilogram of milk solids, the dairy company made a retained annual profit of $19 million profit compared to $235 million in the preceding 14 month period.

-BUSINESSWIRE