Stephen Mayne, a prominent figure in Australian corporate governance, continues his relentless campaign as a self-proclaimed full-time shareholder activist. Having interrogated public company boards at 314 annual and extraordinary general meetings across the past two years, and running for 28 board seats in the last eight months alone, Mayne remains a formidable presence. His self-described role as a “serial board nomination pest” targets companies he believes are disadvantaging retail shareholders. While some perceive him as an irritant, others, like veteran business journalist Alan Kohler, view him as “a national treasure” for his commitment to accountability. This enduring activism has spanned over three decades, taking him to more than 1400 shareholder meetings since 1991.
A central pillar of Mayne’s activism is advocating for fair treatment of retail investors in capital raisings. He highlights that share placements, which dilute existing shareholders by issuing new stock at a discount, often exclude retail investors. While Share Purchase Plans (SPPs) and Pro-Rata Accelerated Institutional, Tradeable Retail Entitlement Offers (PAITREOs) offer mechanisms to mitigate this dilution, Mayne notes these retail-friendly structures are increasingly falling out of favour. Data indicates a significant decline in PAITREOs and a rise in placements without accompanying SPPs, a trend Mayne describes as companies resorting to “quick and dirty, non-pro rata placements.” He asserts that company practices “remain disappointing” in many areas, particularly regarding retail shareholder inclusion.
Mayne’s effectiveness, according to Ownership Matters co-founder Dean Paatsch, lies not just in how he raises issues but in the fact that he raises them at all. Fund manager Geoff Wilson, despite often being a target, acknowledges Mayne’s “excellent” work in holding companies to account, especially when institutions address concerns behind closed doors. Mayne, known for his meticulous record-keeping and a deep grasp of corporate life, uses his frenetic energy to address various issues, from directors’ conflicts of interest and lacklustre disclosure to audit firm selection. At a recent EGM for Close The Loop, a listed recycling company, Mayne rigorously questioned its balance sheet and fundraising methods. Eric Beecher, Mayne’s former employer, suggests he is “a poster child for democracy,” with members of the establishment privately recognising his importance as a “gadfly figure.”
