Kiwi Wealth is adding company DGL to its list of businesses it won’t invest in after its chief executive made derogatory comments about popular New Zealand chef, Nadia Lim.
NBR reported on Thursday that several other fund managers are also understood to be assessing their position.
CEO of chemical supply chain management company DGL, Simon Henry, told NBR in an interview released on Tuesday: “I can tell you, and you can quote me, when you’ve got Nadia Lim, when you’ve got a little bit of Eurasian fluff in the middle of your prospectus with a blouse unbuttoned showing some cleavage, and that’s what it takes to sell your scrip, then you know you’re in trouble."
His disparaging comments continued.
“Go back to that prospectus and find that photo. You know you’re in trouble. I mean, you know, when you got a TV celebrity showing off her sensuality to hock script, then you know you’re in trouble. The uglier the board, the more successful the share. So, I sort of don't get it; you come to market telling everyone it’s a great company. And, by the way, we’re selling it and running.
“I don’t get it. I mean, I’m a simple man. I don’t get it. If it’s so good, why are you selling it?” Henry said.
He was talking about My Food Bag's underwhelming entry into the public market.
Rhiannon McKinnon, chief executive of Kiwi Wealth, told 1News in a statement Simon Henry's comments were "offensive" and "misogynistic".
"Kiwi Wealth does not invest in DGL and we are adding this company to our exclusion list to ensure it remains the case.
"The company’s profile raises a number of red flags we think should give anyone pause before investing – not only the CEO’s recent statements, but also his outsize personal control of the company.
"His objectionable behaviour now presents elevated reputational risks to the company which could be financially material, and should raise serious concerns for any investment manager serious about returns or sustainability, let alone reducing offensive misogynistic rhetoric in public discourse," McKinnon said.
The image of Lim on page 23 of My Food Bag's Product Disclosure Statement shows her at a BBQ dressed in jeans, a v-neck camisole which was layered with another top. There were no buttons on the camisole.
Unconscious bias
Lim told Newshub on Thursday that her advice to Henry was to “go get some unconscious bias training”.
“It saddens me how other people, women - women of colour and other ethnic backgrounds who might see themselves in those comments and how they would feel and how they would feel hurt,” she said.
“Young people who hear these things over and over again, who then, over time somehow start to believe they are less capable, have less to give and contribute than their peers.
“That’s why comments like this are so damaging.
“It’s water off a duck’s back to me but it’s other people I feel really, really sad and disappointed for.
“He’s in a great position of power and influence and he could use that to celebrate diversity and inclusion and be a great example and leader, but no he chooses not to,” Lim said.
Henry has been approached for comment.
The New Zealand Shareholders’ Association said Henry's comments are "insulting to most retail and institutional investors, as well as to Nadia Lim".
"We know that investors make decisions based on a variety of factors, including financial performance, governance quality and (increasingly) environmental sustainability. We consider it improbable and insulting to the capabilities of New Zealand investors that any investor would make a significant financial decision based on a picture of a company’s founder."
Race Relations Commissioner Meng Foon told 1News in a statement that Aotearoa New Zealand as a nation, should pride itself on fairness and inclusivity and stand against sexism, racism and other forms of discrimination.
“Consumers and investors can make up their own minds as to what standards are important to them but as a society looking to build cohesion and inclusion, there are bottom lines which should be adhered to.
“Businesses and the community thrive on diversity as it boosts creativity and innovation, with fresh ideas and perspectives brought to the table. Having diversity in business opens doors to create and deliver to new groups, with engagement opportunities available where people feel represented.”
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