MOOD of the BOARDROOM 2017 Chief Executives’ Survey
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Tuesday September 12, 2017 MOOD OF THE BOARDROOM 2017 Chief Executives’ Survey Too close to call? Our experts analyse the responses Hamish Fletcher Fran O’Sullivan Liam Dann Thomas Pippos D2 nzherald.co.nz | The New Zealand Herald | Tuesday, September 12, 2017 MOOD OF THE BOARDROOM Mood of the Boardroom 2017 Executive Editor: Fran O’Sullivan Writers: Francis Cook, Liam Dann, Hamish Fletcher, Anne Gibson, Tim What’s Inside McCready, Tamsyn Parker, James Penn, Thomas Pippos, Holly Ryan, Graham Skellern. Subeditor: Isobel Marriner Cover: Rod Emmerson Graphics: Isobel Marriner Online: Sophie Ryan, Francis Cook Advertising: Neil Cording; Megan Shaw Survey Co-ordination:Tim McCready, James Penn Event Stage Management: Rebecca Widdison The Herald’s Mood of the Boardroom 2017 Election Survey attracted participation from 118 respondents. This year there were more than 90 chief executives including CEOs of most of NZ’s biggest companies, some significant publicly owned institutions, ahandful of company chairs and the Wheels fall off the What now for The fight for finance: CEOs weigh heads of seven influential business Green machine, D8 Winston? D9 up Robertson and Joyce, D10-11 organisations. The Herald survey is conducted in association with BusinessNZ. Chief executives are drawn from the Deloitte Top 200 list which spans private and public-sector companies, Business NZ’s major companies group and major professional advisory firms. The survey is now in its 16th year having been launched in December 2002 within a Herald State of the Nation report. Watch the debate Shadow finance spokesman Grant Robertson and National’s Finance Minister Steven Joyce will debate the results of the Herald survey at a breakfast at the Langham hotel in Auckland this morning. The debate will be chaired by Herald Managing Editor Shayne Currie. nzherald.co.nz will feature video from The Trump The growing Education for What to do about the debate and interviews with leading factor, D14 cyber threat, D16 the future, D17 our water, D25 CEOs attending the breakfast. Growing prosperity and potential D3 MOOD OF THE BOARDROOM Astrong mood for change noverwhelming majority of chief executives see 88% of CEOs view Jacinda Ardern agamechanger for the election, writes Fran O’Sullivan Jacinda Ardern’s confirma- tion as leader of the Labour AParty as an election game-changer. There is astrong mood for change among the 118 respondents to the Herald’s Mood of the Boardroom Elec- tion Survey. Some 88 per cent see Ardern as the lightning rod which could cata- pult Labour to power at the Septem- ber 23 election. But their appetite for regime change is tempered by Labour’s failure to be upfront about its intentions on major polices affect- ing business, like capital gains. With less than afortnight to run before final polls close, chief execu- tives remain divided on whether to “call time” on the third term National Government. “I think the National Government has been avery credible and stable manager that deserves respect for its approach in managing the country,” said atourism boss. “However, it is arguable that they have come late to issues such as water management, local infrastructure and transport in- been slow. “On the other hand, it takes are bringing to the table,” said The election comes after alengthy Tourism boss: “Paula or Steven vestment with apiecemeal, below par time to turn asuper-tanker ...and the Mainfreight group managing director period of economic growth. But there would be agood stopgap, but it approach. tolerance for change in the popula- Don Braid. “As long as that’s not are tensions. ultimately needs someone to come “They need to get ahead of these tion is slow.” thought up on the fly and has had “The Key Government was negli- from outside the system.” issues and signal astrong intent as If National was to get afourth term some decent thought behind it before gent with the house price outcomes There was aclear sentiment it was these are real issues that affect it needed to abandon its “steady as they release it, then she’s definitely which is avery difficult, inter- time for generational change. voters.” she goes” approach and be more got this current Government on the generational issue now to resolve,” Chief executives once again put The survey —which is taken in aspirational in its approach to the big run in my view. said an energy sector boss. “English English at the top of the Cabinet association with BusinessNZ —has ticket items including water, climate, “She’s got youth and she’s got was Deputy Prime Minister and Min- rankings on his performance over the been in the field during one of the homelessness and poverty. energy, and she’s almost —without ister of Finance during that time so past year. The Prime Minister rated most volatile elections in New Zea- English presided over New Zea- blaspheming —the John Key effect has to shoulder some of that blame, 4.13/5 on a1-5 scale where 1=not land’s recent history. for the Labour Party, isn’t she? And and therefore putting the party’s in- impressive and 5=very impressive. The Herald delayed surveying un- The result will turn on perhaps that’s what the younger vote terest ahead of New Zealand.” His rating was down on prior years til August 14, so as to more accurately is looking for, perhapsthat’s what the An energy chief cautioned that when he held the finance portfolio. capture the mood in the nation’s Bill English’s ability to sell non-voter has been looking for; some- though New Zealand was enjoying English’s successor as finance min- boardrooms after aperiod in which his dream for the future one to hang their hat on.” good returns for dairy exports,export ister, Steven Joyce, was rated 3.71/5. Ardern took over Labour’s’s leader- Deloitte CEO Thomas Pippos education and tourism, all had Nikki Kaye was next on 3.62/5 fol- ship from Andrew Little, and Greens vis avis Jacinda Ardern. counters that “this next period the vulnerabilities which could wipe the lowed by Amy Adams (3.58/5); co-leader Metiria Turei was forced to In both cases using the result will turn on Bill’s ability to sell smile from our country’s face pretty Bennett (3.56/5); Chris Finlayson resign following an admission of his dream for the future vis avis quickly. (3.49/5); Simon Bridges (3.18/5); Anne benefit fraud. canvas he has helped others (Jacinda) —inboth cases using “I think many of these risks con- Tolley (3.11/5); Todd McClay (3.05/5). “They finally have acharismatic the canvas he has helped materially cern business —not just for ourselves The remaining ministers all rated less leader,” said an investment banker. materially shape and shape and build as Minister of but more broadly for the wellbeing than 3/5 when it came to their per- “People these days vote with their build as Minister of Finance. of our society. Ithink currently we formance. eyes —she is much more appealing “A risk is that his focus will be on are all marching on hoping that When it came to ranking the minor that Andrew Little!” Finance. Arisk is that his the canvas that now exists when the Trump does not pull the trigger and party leaders, they placed Act’s David There is aclear perception that the focus will be on the general populous has banked that, that the Chinese (with all the levers Seymour top of their list with 2.85/5 National Government —driven by its and are now looking for what will be available to them) manage their econ- with NZ First’s Winston Peters nar- own fiscal focus —left it too late to canvas that now exists painted on it.” omy to avoid acrisis of the kind some rowly behind at 2.76/5. The other make major investments in housing when the general But Ardern’spropensity to make consistently predict.” leaders: James Shaw (Greens), Te and infrastructure to underpin the “Captain’s calls” on important matters National’s future Ururoa Flavell and Marama Fox (Ma- massive uptick in immigration num- populous has banked like capital gains taxes are amajor CEOs were split on who they ori Party), Gareth Morgan (The Oppor- bers in recent years. that and are now looking negative. “Now is not atime for thought would make the best Oppo- tunities Party) and Peter Dunne ICBC chairman and former Re- experimenting with aLabour Party sition leader if National should lose (United Future, who bowed out be- serve Bank Governor Don Brash said for what will be painted coalition whose policies are un- the election —which is aclear possi- fore the survey was completed) all the Government has failed to adopt changed and its leadership has bility on its current poll ratings. rated at less than 2.5/5. policies designed to increase per on it.” devolved on adoctrinaire and inex- Some 27 per cent thought Deputy Spark managing director Simon capita growth, and many of the other Thomas Pippos, Deloitte perienced political activist with no Prime Minister Paula Bennett had the Moutter says whoever wins, restoring problems (increasing wealth inequal- real world experience,” said alaw firm right attributes to make the most stable and consistent Government ity, poverty and homelessness) are a land’s finances for eight years before boss. vigorous leader; others opted for post-election will be apriority. “Who- direct result of the Government’s fail- becoming prime minister. There was Beca’s Greg Lowe noted however Steven Joyce (20 per cent) and Judith ever leads needs to move quickly to ure to deal with the unaffordability the GFC.