MOOD of the BOARDROOM Mood of the Boardroom 2019 What’S Inside the Herald’S Mood of the Boardroom 2019 Ceos Survey Attracted Participation from 157 Respondents
Total Page:16
File Type:pdf, Size:1020Kb
Tuesday,September 24,2019 Moodofthe BOARDROOMnzherald.co.nz/business Walking a tightrope 150+ CEOs sharetheir views INSIDE •FranO’Sullivan•Thomas Pippos •GillSouth •LiamDann •Tim McCready •DuncanBridgeman D2 nzherald.co.nz | The New Zealand Herald | Tuesday, September 24, 2019 MOOD OF THE BOARDROOM Mood of the Boardroom 2019 What’s inside The Herald’s Mood of the Boardroom 2019 CEOs Survey attracted participation from 157 respondents. This year there were some 140 chief executives including CEOs of some of NZ’s biggest companies, some publicly owned institutions and heads of several influential business organisations and several directors. The Herald survey is conducted in association with BusinessNZ. BusinessNZ put 15 questions from the survey to its membership attracting afurther 150 responses from business heads. The survey is now in its 18th year having been launched in December 2002 within a NZ Herald State of the Nation report. Watch the debate Finance Minister Grant Robertson Home and away The confidence National’s fast Executives’ pick and National’s Finance —D4 trick —D6-9 learner —D13 for mayor —D14 Spokesperson Paul Goldsmith will debate the survey results at a breakfast at the Cordis Hotel in Auckland this morning. The debate will be chaired by NZME managing editor Shayne Currie. nzherald.co.nz will feature video from the debate and interviews with leading CEOs attending the breakfast. MOOD OF THE BOARDROOM Executive Editor: Fran O’Sullivan Writers: Bill Bennett, Duncan Bridgeman, Liam Dann, Tim McCready, Thomas Pippos and Gill South. Subeditor: Isobel Marriner Cover: Richard Dale Graphics: Richard Dale, Isobel Marriner Advertising: Christine Moxham Survey Co-ordination: Natalia Banking and Orr Coalition power Tax reform in limbo Rimell, Tania Calderon —D15-17 plays —D18-19 —D24 Mood of the Boardroom event director: Sarah D’Audney Growing prosperity and potential nzherald.co.nz | The New Zealand Herald | Tuesday,September 24, 2019 D3 MOOD OF THE BOARDROOM Walking atightrope PM loses ground in survey as CEOs citelackofexecution andfailure to ignite business confidence CEOs Optimism Index Mood of the Aretheymoreorlessoptimistic Boardroom than oneyearago about: Fran Businesssituation in your O’Sullivan industry Weighted Average 2.37/5 rime Minister Jacinda Much less optimistic 17% Ardern’s standing has taken Slightlylessoptimistic 45% atumble among CEOs re- Thesameaslastyear 23% P sponding to the Herald’s Slightlymoreoptimistic 13% 2019 Mood of the Boardroom Survey. Much moreoptimistic 2% They now rank her fifth among the Cabinet Ministers on her ministerial NewZealandeconomy performance,marginally ahead of Weighted Average 1.96/5 New Zealand First leader Winston Much less optimistic 25% Peters and down from her second place ranking last year where she was Slightlylessoptimistic 58% seen as the Government’s overall Thesameaslastyear 13% standout performer. Slightlymoreoptimistic 4% The Herald survey, which is taken Much moreoptimistic 0% in conjunction with BusinessNZ, attracted 157 respondents from the Theglobaleconomy “big end of town” with afurther 150 Weighted Average 1.70/5 SME leaders who responded to a Much less optimistic 40% shorter version. Many of the NZX Top Slightlylessoptimistic 52% 50 listed companies were contribu- tors along with chief executives from Thesameaslastyear 6% all major trading banks, key dairy Slightlymoreoptimistic 1% sector players, araft of professional Much moreoptimistic 1% advisory firms and several well- Jacinda Ardern and Grant Robertson under pressure in their “Year of Delivery” CEOs were asked to rate each factor on placed directors. ascale of 1-5: They cite the Prime Minister’s NZ Initiativechair Roger Partridge bate is the first time CEOs will have 1=muchless optimisticand strengths as her celebrity and per- judged him head to head with Robert- 5=muchmoreoptimistic formance on the international stage. said the Government had shown a son in this forum. Source:NZHerald2019Mood of theBoardroom Her handling of the Christchurch willingness to listen and to Among the issues concerning CEOs Survey massacre has been applauded by reconsider policy proposals in CEOs: chief executives. But they say her Dealing to infrastructure const- Government’sfailure to execute in a response to evidence. raints and congestion on Auckland timely fashion on key Government roads rate high: 86 per cent agree with CEOs rate theCoalition policies, combined with an inability the Prime Minister’s Business Ad- to stoke business confidence, is con- visory Council that infrastructure is Government’s tributing to an overall loss of confid- abysmal in some areas like address- newbie Cabinet Minister Kris Faafoi at a“crisis point”. performance in its ence in the New Zealand economy. ing housing. in this year’s ministerial ratings this The survey also reveals 55 per cent “YearofDelivery” Business confidence as measured “Overall the Government has been will be some comfort. It is pertinent of CEOs believe banks are scare- by the Herald survey is now at is hopeless at meeting its own targets,” to note however, that more chief mongering when they say they will More impressive lowest ebb across all three metrics said Devon Funds Management executives rated him “most impress- pull operations back from New Zea- since the Global FinancialCrisis. chairman Paul Glass. ive”, than any of his other colleagues. land if the Reserve Bank’s capital Takingmental health 3.24 The upshot is the Ardern Govern- “Against the hype and even with NZ Initiative chair Roger Partridge proposals are implemented. seriously ment is now walking atightrope as its own PR machine this Government said the Government had shown a Seventy-three per cent say Phil Maintaining fiscal 3.17 it endeavours to build momentum hasn’t delivered on its key election willingness to listen and to reconsider Goff has the best attributes to be the esponsibility and restore domestic confidence be- policies on housing, child poverty, policy proposals in response to evi- next Mayor of Auckland. Just 11 per SupportingMāoriand 2.99 fore any further international disrup- Ma¯ori economic and regional de- dence. cent rate John Tamihere. Pasifika aspirations tion drives sentiment down further. velopment,” said aMa¯ ori business But said Mainfreight CEO Don Aleadership vacuum has opened leader. Braid, “too much time in opposition Improvingchildwellbeing 2.67 up domestically as the Coalition Abanker said policy development has dulled the ability to deliver policy. Ardern: My hope, Progress on international 2.63 makes heavy weather out of its had alate start. “Some of the policies More action. Less talk.” arising tidethat tradeagreements efforts to cement successes in what are good such as the intent behind New Zealand First is seen as strong Regional development 2.56 it has promoted as its “Year of Deliv- KiwiBuild. But the execution capa- influencer within Government with willlift all boats ery”. As the adjoining table shows bility has been overestimated and leader Winston Peters being particu- Policy,planningand 2.08 chief executives ranked the Coali- timeframes unrealistic.” larly successful in moderating Labour —D23 consultation with business tion’s focus on taking mental health For the Finance Minister the 2019 policies that business and the farming Buildingaproductive 1.85 seriously —one of arange of focuses survey is amixed bag: 54 per cent of community generally opposed, such Within their own businesses, nation in Finance Minister Grant Robertson’s respondents feel he is delivering as the capital gains tax proposals and labour and skills shortages rate as the Policy execution 1.69 first Wellbeing Budget —asthe most credible economic managementand employment changes. top factor keeping CEOs awake at Transformingthe economy 1.64 impressive among abunch of rated highly his maintenance of fiscal National Leader Simon Bridges, night. indicators. But it has been rated as focus. Given he was pipped by also downgraded by CEOs this year, BusinessNZ sent 15 questionsfrom Addressingtransport 1.57 is now sitting well behind other the Mood of the Boardroom survey constraints Said Mainfreight’s Don Braid: too colleagues such as Judith Collins in to its members. It revealed top con- Addressingthe housing 1.55 their estimation of their respective cerns among its members were un- shortage/unaffordability much time in opposition has performances. certainty about the Government’s dulled the ability to deliver National’s Paul Goldsmith, is just policy direction, the international Less impressive policy. More action. Less talk. three months into the job as finance trade environment and being able to Scale1-5where 1=not impressive and spokesman, but 43 per cent say he attract talent. 5=very impressive has the right qualities to deliver; 45 Source:NZHerald2019Mood of theBoardroom per cent are unsure. His debut in ● D30-31: Not acomfortable CEOs Survey today’s Mood of the Boardroom de- Coalition Legislate to removethe taint of backdoor funding CEOs sent aclear message in the nationals but classes New Zealand- Transparency and in our foreign donation laws,” says Mainfreight’s Don Braid suggests Mood of the Boardroom survey —75 registered companies as local even aproperty firm boss. we should have zero tolerance: “no per cent of them agreeing the Gov- if their control or ownership is awareness of whois Chorus CEO Kate McKenzie says international political donations ernment should legislate to tighten foreign. all donors expect to obtain some should be allowed.” foreign donation laws in order to The donation issue was thrust into donatingand why influence as aresult of donating, Whereas adairy company chief remove the taint of backdoor funding the spotlight again last month when though she is “not sure ‘foreign’ executive suggests he is “not so sure through the use of New Zealand former National Party MP Jami-Lee are the important donors are any better or worse — about the relevance of donations, companies. Just 8per cent said this Ross revealed that then trade min- transparency and awareness of who because foreign actors are present isn’t necessary; 17 per cent were ister Todd McClay had helped to things to focus on. is donating and why are the import- with or without.” unsure.