Shareholders give thumbs up to a2 Milk boss
The a2 Milk Company shareholders have voted by an overwhelming 95.7 per cent in favour of chief executive Jayne Hrdlicka retaining her dual role of boss as well as board director.
This was despite a call from the New Zealand Shareholders Association (NZSA) to oppose her appointment as managing director, on the grounds that ‘‘there should be a clear separation of the governance and management roles and to avoid the conflicts of interest that will arise’’.
It said the chief executive should report to the board and not be a ‘‘first among equals’’.
However, shareholders were less enthusiastic about a resolution that the pool for directors’ fees be lifted by $415,000 from $950,000 to $1,365,000. This passed by 67.4 per cent, which NZSA chairman Michael Midgley said was ‘‘a clear message’’.
a2 Milk chairman David Hearn’s fee rises by 37.5 per cent to $165,000, as will that of the three independent non-executive directors, who will be paid a similar amount. Deputy chairwoman Julia Hoare will receive $210,000, up 27.3 per cent.
Prior to Tuesday’s annual meeting, Hrdlicka said a2 Milk would rise above the increasingly shaky world trading environment thanks to demand from Chinese consumers.
China accounts for a quarter of a2 Milk’s business and has helped propel the dairy marketing company to record revenue of $368.4 million for the first quarter of 2018-19, up 40.5 per cent on the same period last year.
‘‘We have had no issues with respect to trade wars and dynamics at any level, because I think we just focus on building our brand for the long term,’’ Hrdlicka said.
Besides shipping product, a2 Milk also relies on a second sales channel called ‘‘daigou’’ – shoppers living outside China who send products directly to Chinese consumers. From January the daigous will have to register as import retailers and pay tax.
Hrdlicka dismissed criticism by the United States dairy industry of a2 Milk’s advertising and marketing claims that A2-type milk products are easier on digestion than conventional A1 protein milk and may help avoid stomach discomfort.
‘‘The traditional dairy producers are nervous – so they’re going to fight dirty,’’ she said.