The Business Herald’s markets and banking reporter.

Rakon must listen to investors: Peter Maire

Sir Peter Maire. Photo / Richard Robinson
Sir Peter Maire. Photo / Richard Robinson

Rakon director and major investor Sir Peter Maire says the company's board and management "should take note" of sweeping changes being called for by the Shareholders Association.

In a statement released to media on Sunday, association chairman John Hawkins said Rakon's financial performance had been dismal and investors were "fed up" with the boardroom domination of the Robinson family, who own roughly 23 per cent of the high-tech component maker.

Navman founder Maire, who owns 5.6 per of Rakon through his Tahia Investments vehicle, said that as a board member it was difficult for him to comment on the association's stance on the company.

But he said the firm "just hasn't performed".

"The statement from the Shareholders Association is exactly what the board and management should expect and should take note of," Maire said.

Brothers Brent and Darren Robinson and their father, Warren, occupy three of Rakon's six board seats.

Hawkins said the association would oppose the re-election of executive director Darren at next month's annual shareholders' meeting.

Chief executive Brent was not the right person for the job and Warren, who founded Rakon in 1967, should voluntarily stand down, hesaid.

Hawkins also criticised the more than 20 per cent pay increases Brent and Darren enjoyed in the last financial year - to $907,892 and $734,605, respectively.

On Monday Rakon chairman Bryan Mogridge said the company shared investors' frustration with recent results and remained fully committed to expanding and diversifying the business.

"We regularly engage with our shareholder base on a range of issues, including governance and company structure, and value their perspective," Mogridge said.

The company has made only one annual profit - $3.2 million in 2015 - amid total losses of $118.7m over the past five years, according to the Shareholders Association.

Rakon shares closed yesterday down 0.5c at 22c.

- NZ Herald

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