Fonterra chairman John Monaghan said Hurrell’s impressive leadership and commercial skills didn’t go unnoticed by the board.
“Miles has demonstrated the wisdom, skills, experience and frankly, the backbone needed to lead,” Monaghan said. “His permanent appointment will bring much needed stability to the co-op and our people during a critical period of change.”
Hurrell has been credited with performing well “under difficult circumstances”.
“Our performance is not something that will be fixed overnight,” Monaghan said. “It will require the courage to make difficult decisions, be up-front with farmer-owners, unit holders and other stakeholders, and instill a culture of accountability and performance right across the organisation.”
Hurrell’s work alongside the board to re-evaluate investments, major assets and partnerships; and review the co-operative’s strategy, has made him “uniquely qualified for the role”.
Hurrell thanked the board and senior leadership team for their support.
“My six months as interim CEO have reinforced my view that, despite the challenges with our current performance, the fundamentals of this business are strong,” Hurrell said.
“To realise our potential we need to get the basics right and that means a full review of our strategy and ultimately, a fundamental change in direction. I’d like to thank the co-op’s farmer-owners and unit holders for their continued encouragement and support. It’s not something that I’d ever take for granted.”
Hurrell joined Fonterra in 2000, after 19 years working in the dairy industry across Europe, the US, Middle East, Africa and Russia. Hurrell was previously the co-operative’s COO of Farm Source – the unit responsible for working directly with the co-op’s farmer-owners.
Fonterra said Hurrell will be paid a base salary of $1.95 million, with additional short and long-term incentive payments. Hurrell’s total remuneration package will be reported in the co-operative’s Annual Financial Statements in September.