I know that The Shining had a very poor critical and commercial reception at first, but I think nobody can argue that Kubrick’s directing was anything short of masterful. Why was he nominated for a Razzie?!
This was the first edition, and judging by its history as presented on the Wikipedia page it seems to have been rather improvisational:
American publicist John J. B. Wilson traditionally held potluck parties at his home in Hollywood on the night of the Academy Awards. In 1981, after the 53rd Academy Awards had completed for the evening, Wilson invited friends to give random award presentations in his living room. Wilson decided to hold the event, after seeing a 99-cent double feature of Can't Stop the Music and Xanadu. He gave attendees ballots to vote on the worst.
Approximately three dozen people came to the 1st Golden Raspberry Awards.
Considering that there were ten nominations and only three dozen or so attendees who voted on them -- and it is not clear to me whether the nominations were thought up by the host alone or compiled via lists submitted by the attendees -- it is pointless looking for a rationale behind Kubrick's nomination. Perhaps someone had a grudge? Perhaps it was a joke?