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UNLOCKING LEADERSHIP Governance Leadership Centre Open for Business HOW MUCH ARE DIRECTORS PAID? SIR MAARTEN WEVERS on GOVERNANCE

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UNLOCKING LEADERSHIP Governance Leadership Centre Open for Business HOW MUCH ARE DIRECTORS PAID? SIR MAARTEN WEVERS on GOVERNANCE Magazine of the Institute of Directors in New Zealand AUGUST/SEPTEMBER 2014 AUGUST/SEPTEMBER boardroom UNLOCKING LEADERSHIP Governance Leadership Centre open for business HOW MUCH ARE DIRECTORS PAID? SIR MAARTEN WEVERS ON GOVERNANCE 10 Treasury as shareholder – 18 Goodbye mass 22 Putting safety first in 30 Developing a pathway of 40 How do you grow CPD taking a fresh approach advertising, hello targeting high-hazard industries experience for directors points? and engagement We’d like to get our thinking into your boardroom. Growing your brands in a systematic and disciplined way will drive up margin, improve your bottom line and boost your reputation. As a design-led advertising agency, we turn sound business thinking into rich creative concepts and powerfully designed campaigns. Our work is crafted and effective. If your board is looking for a practical, results focused growth partner, request your copy of strategy thinking™ at strategy.co.nz. INSTITUTE OF DIRECTORS NEW ZEALAND TRADE CLOUDY BAY VICTORIA UNIVERSITY SHARE AN IDEA OFFICE OF THE OMBUDSMAN MY FOOD BAG BOOSTED IN NEW ZEALAND AND ENTERPRISE www.strategy.co.nz AUCKLAND | WELLINGTON | CHRISTCHURCH | SYDNEY We’d like to get our thinking into your boardroom. Growing your brands in a systematic and disciplined way will drive up margin, improve your bottom line and boost your reputation. As a design-led advertising agency, we turn sound business thinking into rich creative concepts and powerfully designed campaigns. Our work is crafted and effective. If your board is looking for a practical, results focused growth partner, request your copy of strategy thinking™ at strategy.co.nz. INSTITUTE OF DIRECTORS NEW ZEALAND TRADE CLOUDY BAY VICTORIA UNIVERSITY SHARE AN IDEA OFFICE OF THE OMBUDSMAN MY FOOD BAG BOOSTED IN NEW ZEALAND AND ENTERPRISE www.strategy.co.nz AUCKLAND | WELLINGTON | CHRISTCHURCH | SYDNEY HOW CAN I GET MY WORKING CAPITAL TO WORK HARDER? A Heartland Business Call Account pays a market leading return and is simple – just the way a call account for businesses and business executives should be. Funds are held on-call, with easy access and unlimited transfers to one nominated bank account. There are no fees and you earn a great return on every dollar. Maybe that’s why the Heartland Business Call Account is recognised as providing “outstanding value” by independent financial products research company Canstar who have awarded it five stars. Talk to us. We’re Heartland – New Zealand’s Specialist Bank. Heartland Business Call Account 4.25 Interest paid monthly. Interest rate subject to change. Maximum balance $5m. 0800 85 20 20 www.heartland.co.nz A copy of Heartland Bank Limited’s Disclosure Statement and Account and Service General Terms BUFFALO/HB5286 and Conditions can be obtained from www.heartland.co.nz or by calling us on 0800 85 20 20. BOARDROOM | 5 FROM THE EDITOR 10 Unlocking HOW CAN leadership Is leadership really all in the genes or is it a commodity bought by I GET MY The wearing of seat-belts for followers? Simon Arcus explores back-seat passengers did not leadership theories become compulsory in New Zealand until 1979; front-seat WORKING CAPITAL 10 Unlocking leadership passengers were required to wear 15 Changing the face of them from 1975. New Zealanders TO WORK Treasury who grew up before that time 17 IoD Directors’ Fees Survey will hold a collective memory HARDER? – the results are out of sliding unharnessed around 18 A new dawn in Adland the slippery back seats of their 22 At the cutting edge of A Heartland Business Call Account pays a market leading return and is simple – just parents’ cars. This may seem madly health and safety unsafe now but at the time there the way a call account for businesses and business executives should be. Funds are 26 In the eye of the storm was opposition to the new laws. held on-call, with easy access and unlimited transfers to one nominated bank account. 30 A pathway to experience There are no fees and you earn a great return on every dollar. Now, there is not only a legal 32 Keeping up with the play requirement for you to wear on continuous disclosure Maybe that’s why the Heartland Business Call Account a seat-belt but a cultural one 36 How to be an IPO rock star as well. Most of us slip on a 38 The changing landscape of is recognised as providing “outstanding value” by seat-belt unthinkingly as soon environmental liability independent financial products research company as we get into our cars. 40 How do you grow CPD points? Canstar who have awarded it five stars. Legislation can provide the 50 New people, new places, motivation for us to re-educate new ways Talk to us. We’re Heartland – New Zealand’s ourselves and develop new habits. Specialist Bank. Many believe that, once it is enacted, the Health and Safety INSIDE IoD Heartland Business Call Account Reform Bill will succeed in bringing 7 CEO Report about a new mindset regarding 8 Update health and safety in the workplace. 42 Director Development 45 Board Services Among the stories in this issue, you 46 Branch News will find examples of high-hazard 48 Branch Events 4.25 businesses where positive changes Interest paid monthly. Interest rate subject are already being made – well to change. Maximum balance $5m. ahead of legislative reform. Katherine Robinson Editor, boardroom Institute of Directors in New Zealand (Inc) Mezzanine Floor, 50 Customhouse Quay PO Box 25253, Wellington 6146 15 Changing the face 18 A new dawn in New Zealand tel: 04 499 0076 of Treasury Adland fax: 04 499 9488 Taking a fresh approach, Advertising is changing at the 0800 85 20 20 email: [email protected] the Treasury plans to work speed of light – can you keep www.heartland.co.nz www.iod.org.nz more closely with boards up? By Christopher Bray A copy of Heartland Bank Limited’s Disclosure Statement and Account and Service General Terms BUFFALO/HB5286 and Conditions can be obtained from www.heartland.co.nz or by calling us on 0800 85 20 20. 6 | BOARDROOM Institute of Directors (IoD) boardroom is published six times SENIOR MANAGEMENT TEAM COUNCIL 2013/2014 a year by the Institute of Directors Chief Executive Officer Stuart McLauchlan, President; in New Zealand (IoD) and is free Dr William Whittaker Michael Stiassny, Vice President; to all members. Subscription for Liz Coutts, Auckland; Warren Dalzell, Manager, Membership, non-members is $155 per year. Auckland; Glenn Snelgrove, Bay of Plenty; Marketing and Communications Margaret Devlin, Waikato; Jim Donovan, boardroom is designed to Nikki Franklin Wellington; Dr Helen Anderson, inform and stimulate discussion Manager, Governance Leadership Centre Wellington; John McCliskie, Nelson in the director community Simon Arcus Marlborough; Ray Polson, Canterbury; but opinions expressed in this Geoff Thomas, Otago Southland magazine do not reflect IoD Corporate Services Manager policy unless explicitly stated. Chris Fox COMMERCIAL BOARD For all editorial enquiries: General Manager Commercial Ray Polson, Chairman, Jim Donovan, Editor, Katherine Robinson Tim Allen Margaret Devlin, Stuart McLauchlan, 027 5639 686 or email Brian Steele, Dr Alison Harrison, [email protected] Rangimarie Hunia For all advertising enquiries: The Institute of Directors has staff based at the National Office in Wellington, and Fran Page: 04 801 0450 eight branch managers operating from their localities. For National Office, telephone boardroom is designed by 04 499 0076. For branch managers’ contact details see Branch Events, page 49 Strategy Design & Advertising, www.strategy.co.nz boardroom is pleased to acknowledge the support of sponsors Institute of Directors in Marsh, Chapman Tripp and KPMG. New Zealand (Inc) Mezzanine Floor, 50 Customhouse Quay, PO Box 25253, Wellington 6146, chapmantripp.com, 04 499 5999 marsh.co.nz, 0800 627 744 New Zealand Tel: 04 499 0076, Fax: 04 499 9488 Email: [email protected] www.iod.org.nz kpmg.co.nz, 09 367 5800 BOARDROOM | 7 CEO REPORT Creating a culture of responsibility New Zealand has a proud history as a nation of independent entrepreneurs and small businesses. An estimated 500,000 companies are registered at the Companies Office, and over 97 per cent of them are SMEs, many of those owned as family businesses. Just as the Royal Commission of Inquiry raising awareness, representing directors’ everyone has a responsibility because it is into the Pike River Coal Mine Tragedy interests and effecting the culture change about creating and sustaining a culture of shocked the nation with its revelations needed to raise the country’s health accountability. Some work will be needed of shoddy health and safety practices, and safety ranking within the OECD. to demarcate and articulate responsibilities the conviction and sentencing of Gloria Currently, New Zealand is placed at 14th. more clearly, but major and complex Davis a couple of months ago could projects such as the Christchurch rebuild I have recently completed a national well have sent ripples of alarm to demonstrate that collective responsibility roadshow, The Contractor Initiative, jointly directors of those small businesses. is the key to minimising workplace injuries run by the IoD and Business Leaders’ Health The fishing vessel Easy Rider sank in and Safety Forum initiative. I was struck not Realistically, accidents happen. And Foveaux Strait when it was swamped only by the number of participants (over they happen in even the most safety- by a wave just after midnight on 550 over eight locations) but also by the conscious workplaces. It is impossible 15 March, 2012. Eight died in the depth of interest. to totally de-risk any enterprise but that does not mean that you should tragedy, including Gloria’s partner. In part, this interest is naturally generated not have a zero harm policy in place.
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