Shortlist of six vie to head new GlobalCo

By PHILIPPA STEVENSON agricultural editor

A hot contest is under way for the million-dollar job heading the Global Dairy Company.

The proposed mega-merger of Kiwi Dairies, New Zealand Dairy Group and the Dairy Board to create the $12.5 billion company - the country's biggest - is yet to pass its final hurdle, a 75 per cent vote by farmer shareholders.

But the head-hunt for a chief executive began soon after the merger proposal was announced in December.

The successful candidate is due to be revealed this month, before the shareholder vote in mid-May.

Frontrunners for the job, which will pay at least $1 million a year, are Kiwi chief executive Craig Norgate, aged 35, and the heads of the Dairy Board strategic business units: Chris Moller, 46, of ingredient products group NZMP, and David Pilkington, 46, of consumer products group NZ Milk.

The Business Herald understands that the others on a six-person shortlist are two New Zealand executives from outside the dairy industry, and an overseas manager unconnected with the board.

Dairy Board chief executive Warren Larsen, who retires next month, said the new GlobalCo head must understand the nature and behaviour of markets, particularly as they affect the global dairy industry.

"You really can't formulate strategy and get the best outcome for your shareholders unless you actually understand what is going on in these markets," said Mr Larsen, who commands a $910,000 salary, according to the board's 2000 annual report.

"The second priority is that the person must have real leadership skills as opposed to just management skills.

"There are several cultures to bring together. There is a network of people of significant backgrounds and cultures globally [so] there needs to be a global focus, not a New Zealand focus."

Mr Larsen said he could speak only of the candidates from within the board, and was "utterly convinced" that either Mr Moller or Mr Pilkington would do the job very well. They were competent, well-trained and highly respected internationally.

A dairy industry outsider would face a steep learning curve, he said.

Dairy Farmers of NZ chairman Charlie Pedersen said farmers, not usually consulted over management appointments, would be more comfortable with someone familiar.

"But that might not be the smartest view. The thing to do might be to bring in someone completely different and give the thing a real rattle."

However, he questioned how long an outsider would take to get to grips with the business and whether New Zealand, with its low salary and exchange rates, could attract and keep someone from overseas.

The doubt was shared by a representative of a major executive search company, who did not wish to be named.

"There will be some people who are prepared to come to New Zealand for quality-of-life reasons and be prepared to compromise US dollar or British pound incomes ... But those comfortably employed in other jurisdictions just will not be prepared to sacrifice income," he said.

Mr Pedersen said there was broad respect for the three frontrunners.

Mr Norgate had a background in manufacturing, raising questions about his experience in marketing.

"But given the sort of ability the man's shown, I guess you would have to believe he could pick up any game he wanted to play."

Mr Pilkington and Mr Moller's "anointing," or selection for senior positions, by the highly respected Mr Larsen was all most farmers needed to know about their ability, said Mr Pedersen.

"We're lucky to be spoiled for choice, I suppose."

The formation of GlobalCo would eliminate adversarial attitudes between the companies, he said.

"Together the senior management of Kiwi and Dairy Group will be dangerous, from the rest of the world's point-of-view. That's a fantastic opportunity for us.

"It's like picking the best out of the provincial rugby teams to set up the All Blacks and then going out there to rip the world apart. It's bloody marvellous."