WAFARMERS, via vice president Steve McGuire, has endorsed board incumbent Don Macdonald and new candidates Steven Read and Michael Field for the Australian Wool Innovation (AWI) director elections.
New South Wales wool broker and woolgrower Mr Macdonald and Michell Wool chief executive officer Mr Read, also from NSW, were recommended earlier this month by the independent board nomination committee (BNC) which vets AWI board candidates.
But Mr McGuire's WAFarmers' sanctioned endorsement did not include the other two candidates recommended by the BNC - current AWI director and chairman Jock Laurie and new candidate Georgia Hack who is general manager marketing and communications for clothing retailer David Jones.
Instead, Mr McGuire, a Kojonup woolgrower, said this week he thought NSW woolgrower Mr Field, TA Field Estates Pty Ltd, the largest progressive fine wool producer in the world, was "too good a candidate to leave out".
Three directors will be elected from a field of seven candidates at AWI's annual general meeting on November 19.
The AWI board has accepted the BNC recommendations but is only able to support three candidates for three board vacancies and has said open proxies will be directed to its preference of Ms Hack, Mr Laurie and Mr Macdonald.
Woolgrowers' national peak body, WoolProducers Australia - which has Mr McGuire and WAFarmers' president, Pingelly mixed farmer John Hassell, on its board - has endorsed the BNC's recommendations, plus added Mr Field as a fifth choice.
"We (WAFarmers) and WoolProducers have slightly different views on the best candidates to bring about further change at AWI at board level," Mr McGuire said.
"While we recognise the value of having marketing and retail experience on the board, we think the priority for AWI at the moment is getting the corporate governance and culture right.
"Good governance and culture are the essential foundation of any enduring and successful organisation.
"On consideration, I believe the candidates with the strongest governance credentials to be Mr Read, Mr Field and Mr Macdonald."
With John Roberts as acting AWI chief executive officer - long-serving former chief executive officer Stuart McCullough has moved to a new overseas role as AWI's chief marketing and innovation officer - and with the "right" directors elected to the board, there was an opportunity for AWI to embrace a "more collaborative approach", Mr McGuire said.
While the latest independent review of AWI's performance in meeting governance, collaboration and research, development and extension requirements had found "notable improvement", more was required, he said.
"I think the way WoolPoll 2021 has been conducted - with a great wad of money spent on getting a message out to woolgrowers, which is essentially, in my view, supporting AWI's own agenda for a return to a two per cent levy rate - and questions about AWI effectively now having two chiefs, one here and one overseas, demonstrates there is still room for improvement in governance and transparency at AWI," Mr McGuire said.
While moving Mr McCullough overseas and replacing him with Mr Roberts "may well be a good decision", he said the way it came about "encapsulates the issues of concern with the way AWI is run".
"Consultation - this decision came out of the blue... there was no discussion with the wider industry, in Australia or overseas," Mr McGuire said.
"Finance - while AWI is crying poor during a vote for WoolPoll they have created a presumably very high paying senior position in Europe, but also wish to retain the individuals they already employ there at significant cost - surely it should be one or the other.
"Governance - the new senior position was not advertised to let other, possibly more qualified, candidates apply.
"Despite chairman Jock Laurie's denials, it is hard to not suspect this was an expedient decision to appease calls from Agriculture Minister (David) Littleproud for changes at the company.
"AWI is at an important point in its existence, the Federal government is showing some frustration with primary industry research and development corporations, a major overhaul is a possibility regardless of who wins the upcoming federal election.
"If this is to happen, the wool industry needs to show that AWI is a well-governed, collaborative organisation achieving results from the funds contributed by levy payers and government."
While WAFarmers and WoolProducers have differing views on the best AWI director candidates, both are united in supported retention of a 1.5pc wool levy rate, Mr McGuire said.
The result of WoolPoll 2021 - voting closes tomorrow - will be announced at the AGM.
Information on the meeting and to enable 40pc of woolgrowers who are registered as AWI shareholders to vote on paper or to log on to vote electronically in the director elections, was sent out in the middle of last month.
Director election information is available at wool.com/agm.
Colette Garnsey and James Morgan are not seeking re-election.
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