Governance gaps emerge amid stronger economic sentiment among directors
Directors across New Zealand are anticipating a more positive economic landscape in 2026, with 55% expecting the country’s economic performance to improve over the next 12 months.
This is according to the 2025 Director Sentiment Survey by the Institute of Directors in association with ASB.
This figure represents a modest but consistent increase from 52% in 2024, while the net sentiment (those expecting improvement minus those expecting a decline) rose from 24% to 36%.
Areas of concern persist
Confidence in organisational performance is even stronger, with 63% of directors anticipating better outcomes in the coming year – up from 58% last year.
Historically, directors have remained more confident in their own organisations than in the broader economy. The 2025 gap between the two widened slightly to 8%, though still below the average 24.6% recorded since the survey’s inception in 2014.
However, the report highlights some areas of concern, particularly in governance and board planning.
Only 37% of directors said succession planning for board chairs is currently under discussion – down from 41.1% in 2024. Declines were also recorded for succession planning across other leadership roles, including CEOs (54.3%) and senior management (57.8%).
Risk governance remains a key priority. While 69% of directors believe their organisations have appropriate risk management systems in place (notably 88.1% among listed companies), attention to cyber threats and environmental risks appears to be slipping.
Just 57% of boards now regularly review cyber risk – down from 62.2% last year – despite continued global increases in cyberattacks. Meanwhile, 46% of directors said their boards review risk responses to physical climate-related events such as floods and droughts.
Activism is another growing concern, with 44% of directors expecting shareholder or member activism to impact their board or organisation within the next two years.
Below is a summary table of 2025 Director Sentiment Survey’s key findings.
|
Category |
Key Findings |
|---|---|
|
Economic Outlook |
55% of directors expect NZ’s economy to improve in 2026 (up from 27% in 2024). |
|
Top Director Concerns |
Inflation (60%), interest rates (58%), cyber risk (56%), talent retention (56%), regulation (51%). |
|
NFP Sector Concerns |
63% cite funding/resource pressure; 48% concerned about long-term viability. |
|
Cyber Risk |
Cited by nearly 60% of directors as a top concern. |
|
Confidence in Organisation |
60% of directors expect their organisation’s performance to improve in 2026. |
|
Regulatory Pressure |
64% report increased ESG and climate-related regulatory burdens. |
