Farmers angry at Merino Co's salaries

Many merino farmers think the salary rewards for top executives at their sales marketing company NZ Merino Co are too high, one disgruntled farmer says. The high-profile farmer said he was upset after disclosure by one of NZ Merino's stakeholders that the industry was "struggling" yet the salaries were high in comparison to similar-sized firms reports The Southland Times. NZ Merino had around 30 staff, yet chief executive John Brakenridge was on a salary in the band of $730,000-$740,000 for the June 2009 financial year, the farmer said. Furthermore, three other employees were on salaries of between $240,000 and $280,000, according to statutory accounts for NZ Merino's 50 per cent shareholder Merino Grower Investments Ltd (MGIL), representing merino farmers. NZ Merino is owned in a joint venture between MGIL and PGG Wrightson, which this week announced a restructuring of the company's board to give farmers an extra director representative, a move by merino farmers for more influence, including over salaries. The disgruntled farmer, who did not want to be named, said the success of selling wool to trendy manufacturers such as Icebreaker and SmartWool failed to translate into higher returns at the farm gate. Taking away returns from farmers could push them out of the merino industry and into alternatives like the controversial Mackenzie basin factory dairy farming plan, the farmer said. "The question is `how come these farmers in the Mackenzie basin are saying they're struggling, when we see Icebreaker doing very well?'... " A number of growers had been unhappy about the pay levels for some time and up to 50 per cent would probably be opposed to the high amounts, the farmer said. But those farmers had not raised the issue for fear of losing contracts, he added. The farmers did recognise Mr Brakenridge's "considerable ability", he said.