Fonterra Performs Much Better, But Covid-19 Weaken CEO Miles Hurrell’s Salary

Fonterra CEO Miles Hurrell took a pay cut in the 2020 financial year despite his base salary increasing and pulling New Zealand’s largest company out of the red.

The farmer-owned cooperative’s 2020 annual report shows that Hurrell received a total of $ 2.008 million in the financial year, receiving no short- or long-term bonus or incentive payments, in line with what he asked from staff earning more. of $ 100,000 that he sacrificed as Covid-19 hit.

Hurrell’s pay was also meager compared to his predecessor Theo Spierings, who was paid $ 8 million each in 2016 and 2017, and pocketed $ 4.6 million when he left in mid-2018 despite Fonterra registering later. a net loss of $ 196 million that year, his first ever loss. Spierings received a total of $ 43 million in his seven years at Fonterra.

When asked if he felt undervalued given that he had helped convert Fonterra’s $ 605 million net loss in 2019 to a $ 659 million net profit for 2020, Hurrell said he was not bothered by the large gap in their respective salary packages.

“It’s not about the money,” he said.

Hurrell was named CEO in March of last year after serving eight months as interim CEO following Spierings’ departure.

Hurrell’s base salary in 2020 was $ 1.95 million, plus benefits of $ 58,500.

Last year he was paid a total of $ 2.26 million, of which $ 1.37 million was the base salary. His benefit payment was $ 65,914, he received an incentive payment of $ 219,375 and a special payment of $ 600,000 for assuming the position of interim CEO.

The annual report shows a slight increase in the number of Fonterra staff by more than $ 100,000. In 2020, 6,354 employees were in this range compared to 6,322 in 2019.

In 2019, the global exporter had 20,685 employees in New Zealand and around the world. In 2020 it has 21,400.

Of the 6,354 people with more than $ 100,000, 984 were in Auckland and 3,639 in the New Zealand regions. On the high seas there were 1769.

The annual report shows that Fonterra’s top two revenues in fiscal 2020, which received $ 2 million and $ 2.43- $ 2.44 million respectively, left the company.