The Country 16/03/26: Peter McBride talks to Jamie Mackay

The Fonterra Chair on the sudden resignation (after eight years) of his chief executive, Miles Hurrell - when did he find out, despite rumours swirling for several weeks? Is Miles heading to NZR? Has Fonterra got a ready-made internal replacement candidate?

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Episode Transcript

Speaker 1 (00:00):
That is the big news story of the day. Miles
Hurrell steps aside as Fonterra chief executive. Shock, horror, how
come this has happened. Let's ask the bloke who's effectively
his boss, the chair of Fonterra, Peter McBride. Peter, when
did you find out about this?

Speaker 2 (00:17):
Good Jamie? Miles advised me on the weekends, so obviously
he's been reflecting on it and thinking on it for
quite a while. You know, you don't make these decisions lightly,
but hey, here is in a role that is particularly
challenging and takes heavy toll on you and your family.
He's decided it's time for him.

Speaker 1 (00:38):
Well, I'm reading in Business Tests from Riley Kennedy. He
reckons this. There's rumors of miles departure have been bubbling
away for weeks. I was certainly unaware of it, Peter McBride,
because at the Zander McDonald Awards I did a fireside
chat with Miles and Shane mcmanaway, and Miles seemed full
of beans. I reckon he should have been at the
Oscars today because he put on a good act I

(01:00):
think performance for a bloke who was going to leave
the next week.

Speaker 2 (01:04):
Yeah, the stained speculation actually for months on this, you know,
in that Farmer meetings in particular, over the last twelve months,
there's been a lot of questions around succession at management
but also at board level, Jamie, So you know, the
conversation isn't a new one.

Speaker 1 (01:21):
So well, let's let's deal to the rumors. Is he
leaving Fonterra to go and run New Zealand Rugby because
I'm thinking that would be out of the frying pan
into the fire.

Speaker 2 (01:30):
Yeah, I don't think so. I think Miles is going
to take a break for a while and he hasn't
decided what he's going to do next, so I'm pretty
sure and he's going Rugby's not on the ticket.

Speaker 1 (01:40):
Any skeletons in the cupboard that are going to come
out that are going to bite him in the.

Speaker 2 (01:43):
Backside, No, no at all.

Speaker 1 (01:46):
Okay he is. Because there's lots of theories going around
and one of the good ones that Rightley Kennedy has
floated in Business Desk is that I mean he leaves
as sort of a corporate genius. Because you can say
what you want about the Miles Hurrald tenure at Fonterra,
he's been along with you. I might add, been very
successful in what he's done. He's turned the good ship

(02:08):
Fonterra around or you two have.

Speaker 2 (02:11):
Yeah, Miles has done a great job and I just
want to acknowledge John Monaghan. Those first two years for
Miles and John were particularly brutal, tough, and a lot
of hard decisions had to be made by management and boards. So,
you know, I really want to acknowledge Miles in particular
for stepping into what was a really challenging role. You know,

(02:32):
he's done a fantastic job.

Speaker 1 (02:34):
So when he contacted you over the weekend, did you
try and convince him to change his mind?

Speaker 2 (02:42):
No, I don't think it's right to do that, Jamie.
You know, like when someone's decided it's your time, you've
got to accept it, you know, as much as you
know you don't necessarily want to, but you know, you
can't hold someone into a role. They've got to really
want to do it. So you know, we're we're in
good shape from a succession planning perspective. Internally we'll do

(03:06):
for a search and process. But yeah, I think when
someone sees it's my time, you know you've got to
respect that.

Speaker 1 (03:14):
Have you already anointed effectively a successor Global Ingredients president
Richard Allen. He joined the co op I think in
twenty twenty four, came back from working in America in Chicago.
Is he the golden Boy?

Speaker 2 (03:30):
No, we haven't annoyed a success and it's really important
that you know, we run a fear and proper process
so that any candidate that applies has a few chance
of getting the job.

Speaker 1 (03:41):
Is this a natural time for Miles to step aside?
The mainland deal is done and he can get that
out of the road because the next fork in the
road if he wants, like within a couple of years time,
when they said they wanted to get back to pre
mainland sale profits.

Speaker 2 (03:59):
Yeah, I think from Miles, you know, as a realization
well it had been eight years, but also you know,
he felt he would need to commit for several more
years to embark on the new strategy, so he made
the call that it was the right time for him.

Speaker 1 (04:18):
So, yeah, when will Miles be doing some media? My
understanding is he's not talking to anyone till next Monday.
Is that correct?

Speaker 2 (04:26):
I don't know, You'll have to ask him. I'm sure
he's available. Just Kim A call.

Speaker 1 (04:29):
Well, I can't ask him because he's not available. That's
why we've got you on today.

Speaker 2 (04:33):
You his number, Yes, I.

Speaker 1 (04:35):
Do have his number. He may not be answering, but anyhow, Look,
Peter McBride, interesting times for Fonterra. Miles Hurrell will be
remembered probably as a bit of a corporate genius, because
he's certainly done a very good job and we wish
him all the best at New Zealand Rugby. He might
need it.

Speaker 2 (04:53):
Hey, just as a bit I'm on a side, Jamie.
I've had my first application from my south On farmer today.
Billow Solomon text me and said when do I start?
I text him back because he's Irish and I said
you can start when you're in the Six Nations?

Speaker 1 (05:05):
Bill, Yeah exactly. Well no, no, he would he would he
I know Billy would talk too much to be the
font the FONTIRA Chief Executive Well, Fonterra Chair of the Board,
Peter McBride, thanks for being available. This is a breaking
story today and thanks for updating us on it.

Speaker 2 (05:23):
Thank you again.