The internal promotion of Hurrell came as Fonterra’s directors reconsider the company’s direction of travel and its needs in a chief executive.
An external recruitment process, started in November last year, is suspended in the meantime, chairman John Monaghan said.
Hurrell has the right mix of talents and experience needed at this time and he will not be paid what former chairman John Wilson called the eye-watering salary and bonuses that Spierings received.
“Miles is the right person at present and has the full endorsement of the board and myself for the role,” Monaghan said.
There is no timeframe for his tenure or the re-examination of the company’s “portfolio and direction” before appointing the next chief executive.
“The board agreed we would not ideally change chairman and chief executive at the same time but we have to play the cards that have been dealt.
“It is a great opportunity to take stock and determine the changes that may be needed.
“Appointing a new chief executive is the most critical decision a board will make.
“We will take all the time we need to find the right person.”
Fonterra had not “preferred” a New Zealander, as NZ First politicians suggested it should when Theo Spierings’ departure was announced.
Hurrell is the right member of the senior management team to lead at this time though they all could have fulfilled the interim role and it was good that he is a Kiwi, Monaghan said.
Hurrell came to Fonterra after a brief spell at the Dairy Board and training in shipping line operations.
The co-operative structure in NZ’s biggest export industry was his attraction for staying in Fonterra and tackling jobs around the world – Europe, the United States, the Middle East, Africa and Russia.
He believes a lack of formal qualifications in dairy technology will not be a hinderance because of his subsequent 18 years of Fonterra experience and the expertise of fellow managers around him in all aspects of the business.
Reluctant to pick his highest priority in the new job, Hurrell nevertheless repeated several times during his first day that he will focus on “delivering on our promises” to stakeholders.
The stakeholders include shareholders, unitholders, the Government and regulatory authorities, 22,000 staff members, customers and the people of New Zealand, as the country’s biggest company.
His most-recent role as head of Farm Source included many personal contacts with dairy farmers and the immediate reactions from farmers to his appointment were all positive.
However, Fonterra is 95% a global business and a chief executive must spend much time working on the export markets and with overseas consumers, he said.
Back home in the senior team, the head of Fonterra Brands NZ is close to being appointed and a process has begun to fill Hurrell’s former Farm Source position.
Reaction to Hurrell’s appointment was along the lines of “good luck” and “give him a go” and several farmers said he has always been great to deal with.
Shareholders’ Council chairman Duncan Coull said the move is stabilising for the co-operative and he has full confidence in Hurrell.
Federated Farmers vice-chairman and Fonterra supplier Andrew Hoggard said the past month or even year was not an example of how a smooth transition was supposed to be.
“It is rather weird and there is probably more going on that we don’t know, that has to remain in the boardroom.
“That is no reflection on Miles who is a bloody good bloke and will do a good job of reconciling the co-op to its farmers.”
The elements of the strategy are right but Fonterra needs to work on its execution, Hoggard said.
He is looking forward to the board candidate roadshow in September to see who is standing and what they have to say about the state of the co-op.
