Hurrell, the New Zealand dairy cooperative’s interim CEO since August last year, will be paid a base salary of NZ$1.95m (US$1.33m), with additional short and long-term incentive payments based on the achievement of targets agreed with the board.
Fonterra chairman, John Monaghan, said Fonterra’s board has been impressed by Hurrell’s leadership and commercial skills.
“Miles has been performing well under difficult circumstances,” Monaghan said.
“Our performance is not something that will be fixed overnight. It will require the courage to make difficult decisions, be up-front with farmer-owners, unit holders and other stakeholders, and instil a culture of accountability and performance right across the organization.
“Miles has demonstrated the wisdom, skills, experience and frankly, the backbone needed to lead. His permanent appointment will bring much needed stability to the coop and our people during a critical period of change.
“His work alongside the Board as we progress our portfolio review to re-evaluate our investments, major assets and partnerships; and the more recently announced full review of the cooperative’s strategy, has him uniquely qualified for the role.”
Hurrell said, “My six months as interim CEO have reinforced my view that, despite the challenges with our current performance, the fundamentals of this business are strong. To realize our potential we need to get the basics right and that means a full review of our strategy and ultimately, a fundamental change in direction.
“I’d like to thank the coop’s farmer-owners and unit holders for their continued encouragement and support. It’s not something that I’d ever take for granted.”
Hurrell joined Fonterra in the year 2000. His 19 years’ experience in the dairy industry has spanned four continents, including roles in Europe, the US, Middle East, Africa and Russia. Before taking up the role of interim CEO, Hurrell was the cooperative’s COO of Farm Source – the unit responsible for working directly with the coop’s farmer-owners.