Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Spierings Case Shows Excessive CEO Pay Isn't Justified

22nd March 2018

Spierings Case Shows Excessive CEO Pay Isn't Justified

It is scandalous that the highest paid CEO in New Zealand last year, Theo Spierings of Fonterra, has presided over one of the biggest losses in his company's history, said Peter Malcolm, spokesperson for the income equality project Closing the Gap.

The $8.3 million annual pay package for Mr. Spierings, who will leave Fonterra this year, highlights the ever-widening gap in New Zealand between CEO and worker pay — with CEOs earning 30 to 50 times more than the average wage, Mr. Malcolm said. Income inequality is bad for our country on many counts.

This year, Fonterra reported a $348 million loss over 6 months as a consequence of having to write down over $400 million in the value of their misjudged investment in a Chinese infant formula company, Beingmate.

"Company directors like to claim that high CEO salaries are justified by outstanding performance," Mr. Malcolm said. "But in the face of this disastrous financial result, the directors of Fonterra need to explain to Fonterra staff and shareholders — indeed, to New Zealand — why they paid Mr Spierings $8.3 million."

Mr. Malcolm said it was time company directors reflected on the damage they are doing to wider society by such poor decisions over performance and salaries.

"All New Zealanders will be horrified by the extravagant salary awarded Mr. Spierings in the face of his appalling performance."


ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Getting To Zero: Challenging But Achievable

Today we released our draft report on how New Zealand should transition to a low-emissions economy. New Zealand has had climate change policies in place for some time but these have not been effective in reducing domestic emissions. For businesses, households, investors and consumers to manage the risks and seize the opportunities of moving to a low-emissions future, change is needed.

“Our report shows that major changes will be needed”, says our Chair, Murray Sherwin, “Emerging technologies are likely to play a large role in facilitating those changes and creating new opportunities for New Zealand. Our inquiry shows that, if credible and stable climate policy can be established now, businesses, households and consumers will be better able to plan for change and manage the risks of moving to a low-emissions economy.” More>>

 

Gordon Campbell: On The Perils Of Using PPPs To Meet Auckland’s Roading Needs

Earlier today, Transport Minister Phil Twyford announced that one of two new roads that the government would be co-financing would be a PPP – namely, the Penlink project that will link the northern motorway to the Whangaparaoa Peninsula. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:

Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>

ALSO:


HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>

ALSO:

Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages