In a note to the cooperative’s farmer-owners and unitholders, Monaghan said his decision was the next step in the Fonterra board’s development and succession planning.
“After 11 years as a director, and having seen through the introduction of our new strategy, operating model, and with our debt reduction efforts well progressed, the timing is right for me and for the coop,” Monaghan said.
“The board is committed to a planned chair succession that provides Miles (Hurrell) and his senior management team with the governance stability and confidence they need to maintain the Co-op’s momentum.”
Fonterra said its current plan was to announce a chair-elect no later than August this year. That timeline would give its farmer-owners transparency of leadership prior to the cooperative’s director elections and allow for a period of handover before Monaghan’s retirement.
Under Fonterra’s constitution, its chairman must be selected from its pool of seven elected farmer directors on the board. Independent directors are not eligible for consideration.