Glanbia Co-op’s representation on the board of Glanbia plc is to reduce from seven of the current board of 15 to three out of the 13 directors, when the board is slimmed down between now and 2023.
At that point, the chair and two vice-chairs of Glanbia Co-op will be the nominees to the board.
According to the Co-op, it has taken a strategic decision to reduce its representation, in order to facilitate the appointment of additional diverse, independent non-executive directors to the board.
Glanbia Co-op chairman John Murphy said: “Our 31.9% shareholding in Glanbia plc is the society’s largest and most valuable asset and income stream, and its continued growth and success benefits our members.
“Glanbia plc’s activities are increasingly global, across two key platforms of branded consumer nutritional products and specialist nutritional ingredients.
“We believe Glanbia plc will benefit from additional non-executive directors who will bring greater diversity to the board’s composition as well as additional international, FMCG [fast-moving consumer goods], sectoral and specialist skills to complement the board.”
The co-op was already due to reduce its number of plc directors to six by June 2022, under a prior agreement.
The decision is announced as the plc reports a 20% drop in profit after tax for 2020.
The slump is mainly attributed to Covid-19 restrictions causing a revenue decline of 13.3% in the Glanbia Performance Nutrition division.