Mike Smith, the former director of NZ dairy giant Fonterra who resigned last month, has spoken to farmer members about his decision to leave the company.
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Smith confirmed what analysts and shareholders had already suspected; that he was unhappy with the governance of the newly created mega-dairy. He told 46 farmer representatives called to a meeting by council chairman John Wilson that the group was in no immediate danger, but that he was concerned “about what the current below-par performance might mean for the future,” council member Charlie Pederson is reported as saying by NZPA.
The fact that the company facilitated Smith’s audience with the farmer members was welcomed by shareholders. While the board may not have needed Smith’s actions to alert it to governance teething troubles, it almost certainly brought them to the top of the agenda.
To see an earlier story about Smith’s departure, just-food.com members should click here.
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