Just a week after the announcement that Fonterra wants to cut $1 billion in costs, there’s a proposal to cut the number of directors on its board by two. Fonterra’s shareholders will vote on the plan at this year’s annual meeting in November. Fonterra Chair Peter McBride has told shareholders that since the co-operative’s formation it has been envisaged that the board size would be rationalised over time. He says with the capital structure review, asset divestment programme and long-term strategy work largely behind them, the board believes it is the right time to review its size and composition. The current ratio of farmer-elected to appointed directors would be roughly maintained, six to three, respectively, instead of seven to four. The chair would still be selected from the farmer-elected directors.