21 Nov 2008

Farmers question salary of Fonterra boss

9:59 pm on 21 November 2008

Federated Farmers is questioning the salary of the chief executive at Fonterra in light of the company's financial performance.

Andrew Ferrier receives a salary of almost $4 million - $1 million higher than two years ago.

Federated Farmers dairy spokesperson Lachlan McKenzie says farmers are questioning the salary because parts of the company have not performed as well as they should have done.

He acknowledges shareholders cannot influence the salary, but says they can express concerns to the board who are responsible for ensuring Mr Ferrier and senior management are performing.

The company's latest annual report for the financial period ending July this year, says Fonterra had achieved the best financial result since it was formed and distributed a total of $9.1 billion to shareholders.