Tough call or not enough ?
If I was a dairy farmer I would be thinking a pay freeze is nothing. I'd be looking for Fonterror to dramatically slim down their overheads and staff numbers.
I hardly think the massive numbers of managers earning $250K plus are doing it tough with just a temporary salary freeze.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Tough call or not enough ?
If I was a dairy farmer I would be thinking a pay freeze is nothing. I'd be looking for Fonterror to dramatically slim down their overheads and staff numbers.
I hardly think the massive numbers of managers earning $250K plus are doing it tough with just a temporary salary freeze.
Word in the agri-street is some of the banks are going to start tightening the thumbscrews on some of the more highly leveraged farmers - forced sales potentially on the cards. Impacted by new reserve bank rules.
David Hargreaves crunches some numbers around Fonterra and does little to soothe his own anxiety about the future of New Zealand's dairy giant and our dairy industry
hope its not NZ version of enron ? only way out is list 49% company to reduce debt or govt bailout i reckon if debt blows out further due to writedowns
Oh my goodness, it looks if those write-downs are even more severe gearing could go up quite substantially, possibly to as much as 60%.
Auditors possibly set to tag the financial statements with fundamental uncertainty if this is a going concern ?
What a mess...
I think really radical change is required and a massive streamlining but I doubt the board or the new CEO will have the foresight to see this or the courage to implement it.
Last edited by Beagle; 11-09-2019 at 11:03 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
The real issue is poor governance and bad decision making over a long period of time made by a board of dubious ability. Blaming staff and making them bear the consequences is unjust and won't rescue Fonterra.
Originally Posted by stoploss
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