Source: New Zealand First – Press Release/Statement:
Headline: Fonterra CEO’s Outrageous $8.3M Pay Year
New Zealand First says the huge $8.31 million pay year for Fonterra’s Theo Spierings is exactly why New Zealand needs ‘say-on-pay’ laws.
“Is this corporate New Zealand? Fat cat payouts for doing their day job,” says the Rt Hon Winston Peters, Leader of New Zealand First.
“Here’s a boss who is paid $2.46 million but who forwent a $1.83 million bonus during one of Fonterra’s worst ever payout years. Now, during what is an average season, he has not only won that bonus back but secured a $3.85 million cherry on top with another $170,000 for superannuation.
“Shareholders need to be reminded that their payout of $6.52 per kilogram of milksolids this season, is well under what they got in real terms for the final two seasons before Mr Spierings came onto the management scene.
“And then there is his investment in China’s Beingmate.
“Fonterra shareholders have seen the value of that stake almost halve over the past two and a half years – in excess of NZ$300 million. The shares Mr Spierings purchased at CNY18.00 are now trading at just CNY9.90 and sinking.
“This kind of fat cat payout is why shareholders need to be given a say on pay. Shareholders need to be given the power to hold the directors and bosses to account,” Mr Peters said.
New Zealand First: Large Company Corporate Reform
- Amend the Companies Act to give shareholders, including cooperatives, a ‘Say on Pay’ for directors and CEO’s.
- Require mandatory remuneration reports and reporting of pay equity.
- Ban ‘golden hellos’ (executive recruitment bonuses) and limit ‘golden parachutes’ (executive redundancy) to the same provisions as for workers.
- Introduce regulations around ‘share schemes’ to require a 36-month minimum holding period after they cease employment in order to prevent short-term nest feathering.
- Amend legislation, such as the Prudential Supervision Act 2010, to stop boards using loose and unreviewable “fit and proper person” tests to shut down potential candidates.
- Introduce serious penalties for corporate fraud and tax evasion.