Judging by the lack of comment from the floor, it seems the co-operative’s farmer shareholders are generally happy with the proposal.
After hundreds of meetings across New Zealand, it seems the co-operative has put its case to farmers and that pitch has been well-received.
Chairman John Wilson came back to that several times when interviewed – that one of Fonterra’s strengths was its ability to engage with shareholders and have a conversation.
The proposals passed will see the board reduce in size from 13 to 11 while retaining a majority of farmer shareholders. But the main change is how board members are vetted and elected.
Fonterra is a food producer working in a complex global marketplace.
The attributes needed around the board table are specific and will change over time depending on market conditions and who else sits on the board at the time of election.
Understandably, Fonterra wants to be able to install people who have the skill set it requires at the time.
By having an independent and thorough process to find candidates with those skills, the co-operative should, in theory, get the expertise it needs.
But that didn’t wash with farmers so the compromise, passed last week, allows any shareholder who gets the support of 35 others to stand as well.
That could conceivably set up the popularity contest the co-operative wants to avoid.
Who will shareholders choose between a board-endorsed but low-profile candidate who ticks the strategic boxes and a high profile farmer who has bypassed the process?
Fonterra hopes it will be the former.
And, judging by the support for the proposals and the quiet confidence with which co-operative leaders spoke last week, they should get their wish.
