Fonterra will announce plans to cut two directors from its board on Thursday, just months after fighting off a pressure for a similar move driven by its shareholders.
On Wednesday night the dairy giant emailed its thousands of shareholders with proposals to make changes to the way it is governed. The plan will be released to the NZX on Thursday morning.
The most striking change will see the number of directors cut to 11.
I think 11 is still too large for a board. While not a hard and fast rule, the optimal size tends to be between five and nine. Less than five and you may not have enough diversity of opinion. More than nine and you find it challenging to have everyone contribute fully.