Harvey in stinging attack

Retail boss’s ‘sex predator’ dig at board hopeful

GERRY Harvey suggested a shareholder activist standing for election to the Harvey Norman board might be a “sexual predator” during a heated AGM at which the company avoided a board spill despite a second strike on executive pay.

The Harvey Norman chairman, long known for aggressively defending his anachronistic management style, wielded the term against Stephen Mayne, who was running for the board of a company he has accused of using secretive and opaque business practices, making poor investments and lacking independent directors.

The 80-year-old Mr Harvey had already railed against “agitators” including Mr Mayne at yesterday’s meeting when Harvey Norman’s remuneration report was opposed by 47.6 per cent of shareholders, well above the 25 per cent needed to force a vote on whether to spill the board.

When time came for Mr Mayne’s ultimately unsuccessful election bid, Mr Harvey (pictured) pulled out a pre-prepared spiel that included reference to an article Mr Mayne wrote 18 years ago ranking female politicians in terms of physical attractiveness. “Are you are sexual predator?” Mr Harvey asked Mr Mayne in front of a crowded meeting room at Sydney’s Tattersalls Club.

Then, while addressing the audience: “No ... he’s not? ... or he’s not admitting to it?”

Mr Mayne, who has since apologised for the article, was not allowed to respond or speak to the motion.

After the meeting, he called Mr Harvey’s attack an “unhinged slur”. “I’m not going to litigate ... but it is very disappointing he chose to make it personal instead of addressing legitimate governance concerns,” Mr Mayne said.

“He’s the worst in the market for governance and he’s only proved it here.”

Mr Mayne received just 8.18 per cent of proxy votes in his favour before just 11.2 per cent voted in favour of a spill meeting.

The motion was opposed by 88.8 per cent of shareholders.

Mr Harvey’s wife, chief executive Katie Page, was reelected with 91 per cent of shareholders voting in support.

Harvey Norman directors Ken Gunderson-Briggs, Maurice John Craven and David Ackery were also re-elected to the board, though the latter’s bid was opposed by 28.38 per cent of proxies.

Yesterday’s meeting came after Harvey Norman revealed its Australian business has been its second worst performing unit so far this financial year in terms of sales growth.