NZSA Disclaimer
The appointment of Andrew Reding as CEO of Fletcher Building Limited (FBU) is cause for celebration. However, this event may signify something more profound – a pattern that speaks to the core of New Zealand’s identity and values.
Andrew Reding, John Hawkins, and I, Bruce Sheppard, share a remarkable commonality. We are all past Chairs of the New Zealand Shareholders Association (NZSA), and after our tenures, we each transitioned into roles serving others in government, business, and regulation.
My journey began when I was asked to help form the Financial Markets Authority (FMA), serving on its establishment board and continuing for a foundation term. John Hawkins joined the board of the NZX regulatory body upon retiring as NZSA chair. Andrew Reding takes on the monumental task of leading Fletcher Building – a company facing significant challenges in its business model, governance, and organisational culture.
Our paths converged during the NZSA’s formative years. Despite our diverse backgrounds, experiences, and approaches, we shared crucial traits: courage, determination, and resilience. We were willing to make unpopular decisions and tackle seemingly insurmountable challenges. Interestingly, while we lacked the gender, racial, and age diversity coveted today, we exemplified diversity in thought and experience.
To my knowledge, no other country has seen multiple leaders from a shareholder advocacy group transition into such pivotal leadership roles. This phenomenon appears unique to New Zealand.
Several factors may contribute to this distinctive pattern. New Zealand’s egalitarian society allows for greater vertical and horizontal mobility than many other countries. Our culture is generally tolerant, quick to adopt new ideas, and often embraces those who question the status quo – a trait we share with our Australian neighbours.
The NZSA itself may be a crucial factor. Its mission – protecting investors, educating the public, and striving for better outcomes – attracts individuals driven by a higher purpose. This environment fosters growth and mutual learning among like-minded individuals passionate about solving complex problems.
Regardless of the exact reasons, this pattern is something to celebrate. It reflects positively on New Zealand’s societal values, the NZSA’s impact and influence, and the individuals who have dedicated themselves to these causes.
For FBU, Andrew Reding’s appointment brings hope. His values, beliefs, and sense of purpose, honed through his NZSA and other experiences, will undoubtedly benefit the company as it navigates its challenges.
I extend my gratitude to every member of the NZSA. Your ongoing commitment enables the organisation to continue its vital work: making investments safer, improving business practices, and fostering knowledge and connections within our community.
Bruce Sheppard
The author is the founder (member #2) of the NZ Shareholders’Association
3 Responses
Hi Sam…
You will note that NZSA has already stated our position publicly, and we do not agree with how the raise is structured as evidenced in the Business Desk article by Rebecca Stevenson, “Fletcher’s $700m raise unfair, says NZSA” or Jenny Ruth’s article in Just the Business on Substack, “Is Fletcher’s Capital Raising the most unfair ever.”
In terms of FBU, so far this year we have led from the front with our calls for Board composition review, recruitment of new leadership and a review of the portfolio of their businesses. Given what has transpired, I would suggest that our efforts have been far from “worthless”.
NZSA will ALWAYS stand up for the rights of investors – regardless of our relationships with key individuals.
Oh, and for the record, I slept REALLY well last night.
Feel free to join up Sam – at only $145 a year, we think we offer a great deal.
Oliver Mander
CEO
Hi Oliver,
I appreciate your position and publishing my criticism, however my shareholder activism and investment style is much more forthright than the NZSA and you haven’t supported me in campaigns in the past – also I feel like Andrew and Bruce’s defence is actions speaking louder than words.
Having said that it may be the case that there is more activism required on the NZX in which case I will consider joining the NZSA, it’s just not worth it right now given the size of my portfolio, the fact that the playing field is heavily tilted towards an incumbent BOD and as Ben Graham said “the typical American stockholder is the most docile and apathetic animal in captivity”.
I don’t care what Jenny Ruth thinks she’s a TERF troll and mindless grammar Nazi.
Best Regards
Sam
Wow, Andrew really screwed over the small investors allocating $600m of the $700m FBU capital raise to “institutional investors” (meaning persons nominated by the underwriter) when he could have done a pro-rata capital raise and allowed people who have actually supported the business for years through all the incompetence to participate in such a deeply discounted issue.
Tells you how worthless the shareholders association is Bruce, I guess it’s a foot on the ladder to a big job and that pushing the little guy under the bus is never an obstacle for people who only care about money and power.
I don’t know how y’all sleep at night.