Fonterra CEO Andrew Ferrier (L) is sitting on a $300,000 pay rise and chairman henry van der Hayden will pick up $15,000 more in fees. Picture / Paul Estcourt
Fonterra's board of directors has voted unanimously to accept a controversial 7 per cent rise in fees.
Chairman Henry van der Heyden said if directors had turned down the rise at yesterday's board meeting it would have made a "mockery" of constitutional process.
The decision came despite protests
from some farmers about the fees increase - and a $300,000 pay rise to about $2.9 million for CEO Andrew Ferrier - at a time when the milkfat payout is projected to fall.
Van der Heyden will now receive $240,000 a year, an increase of $15,000. Directors will get $115,000, a $7000 per head increase.
He said the increase had been recommended by the shareholder-appointed and independent directors' remuneration committee, and supported by just under 60 per cent of shareholders at last month's AGM.
"We have to respect that the committee is elected by shareholders, takes its role seriously and has made a recommendation based on the view that current director remuneration is below that of comparable organisations.
"This recommendation also received shareholder support in line with the constitutional process."
Waikato Federated Farmers president Peter Buckley - who called for directors to refuse the rise - said he would have liked it to have been declined as a sign of solidarity with farmers facing a lower payout. But he acknowledged dairy farmers in his area were split on the issue.
