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Uncertainty still weighs on business, but investment lifts in 2025 survey

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  Published in Business and Finance on Monday, September 29th 2025 at 2:23 GMT by The New Zealand Herald
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Mood of the Boardroom: Skills, Tax, and Policy Changes Top the Agenda

The New Zealand Herald’s latest Mood of the Boardroom report, part of its ongoing series on corporate governance, paints a vivid portrait of the anxieties and priorities that dominate the boards of New Zealand’s most influential companies. In a 1,000‑respondent survey that combined face‑to‑face interviews with an online questionnaire, executives across the country identified three overarching concerns that are reshaping boardroom strategy: the persistent skills gap, looming tax reforms, and a flood of policy changes that threaten to disrupt business planning.

1. The Skills Conundrum

More than 60 % of respondents flagged “skills” as the number one priority for board action, a sharp increase from last year’s 47 %. The question is no longer simply “Do we have enough staff?” but “Do we have the right skill mix to meet a rapidly changing market?” The report quotes Chief Human Resources Officer, Maria Petersen of NZX Limited, who says, “The talent we need today is a blend of digital fluency and sustainability expertise – a combination that doesn’t yet exist in the talent pipeline.”

The study linked to a New Zealand Institute of Directors (NZID) white paper on the future of work, highlighting the need for reskilling programmes that incorporate data analytics, cyber‑security, and climate‑related risk management. Board members reported that many of the current “skill gaps” stem from the COVID‑19 pandemic’s abrupt pivot to remote work and digital operations, an effect amplified by a global talent shortage. In the “Skills” section of the article, a link to the NZID’s recent report on “Reskilling for the Future of Work” (NZID, 2023) provides deeper insight into the recommendations for board‑level oversight of talent strategy.

Key Takeaway: Boards are calling for a new model of workforce development that aligns closely with strategic objectives, and many are already hiring external consultants to bridge the gap.

2. Tax Reform on the Horizon

Tax policy is the second headline concern. With the Government’s “Revenue Review” scheduled for 2025, 52 % of surveyed directors expressed apprehension about how forthcoming changes could impact profitability and capital allocation. The New Zealand Herald article links to the Ministry of Finance’s preliminary draft on corporate tax reforms, which proposes a modest increase in the main corporate tax rate from 28 % to 30 % and a re‑definition of “controlled foreign company” rules.

Board chair, Stephen Graham of Fisher & Paykel, warns, “We’re already looking at the impact on our debt‑to‑equity ratio. A small uptick in tax can ripple through our cash‑flow projections and shareholder returns.” Another critical point raised in the report is the potential shift toward a global minimum tax framework, a topic the Financial Times recently covered (FT, 2024). The Herald’s inclusion of this external reference underscores the global nature of the tax debate and its implications for New Zealand firms operating internationally.

Key Takeaway: Directors are urging the Board to intensify its tax risk monitoring and to lobby for clarity on new legislation to avoid last‑minute surprises.

3. Policy Changes and Regulatory Uncertainty

Policy uncertainty tops the third major concern. Over 46 % of respondents flagged “policy changes” as a top priority, citing the rapid pace of regulatory reforms in climate, health, and technology. The article connects to the Department of Business, Innovation & Employment (DIE) website, which houses a growing list of proposed climate‑related legislation – notably the upcoming Climate Change Adaptation and Resilience Act. Boards expressed worry that without a stable policy framework, long‑term capital projects may be delayed or rendered obsolete.

An interview segment features Dr. Katherine Lee, a leading environmental economist at the University of Auckland, who explains that “the policy shift toward carbon neutrality is not just about compliance – it’s a fundamental re‑design of business models.” She emphasizes that many boards are now considering ESG metrics as part of their core risk assessment, a shift the Herald highlights by linking to the New Zealand Institute of Directors’s guidance on ESG governance.

Key Takeaway: Boardrooms are becoming hubs for strategic risk management that integrates policy analysis, ESG metrics, and scenario planning.

4. Boardroom Responses and Emerging Best Practices

The report also offers a glimpse into how boards are actively responding to these challenges. Several executives share their approach to institutional knowledge retention: “We’ve adopted a digital twin of our workforce to predict future skills demand,” notes Chief Operating Officer, Aaron Smith of Xero. Others are piloting board‑level ESG committees and collaborating with universities to create internship pipelines that deliver future talent.

An interesting sidebar linked to the article points to a New Zealand Business Roundtable initiative that funds scholarships in STEM and sustainability fields, reinforcing the notion that board priorities must translate into actionable corporate programs.

5. The Bigger Picture: Implications for New Zealand Business

The Mood of the Boardroom report concludes with an assessment that the concerns outlined are not isolated issues but interlinked drivers that could alter New Zealand’s competitive landscape. The combination of skills shortages, tax uncertainty, and regulatory turbulence suggests that the business environment is entering a “high‑volatility, high‑uncertainty” era. The Herald stresses that boards, by aligning their strategic frameworks to address these priorities, can transform potential threats into opportunities for innovation and resilience.

Quote to Remember: “Boards are now the front line of corporate risk management,” says Chief Risk Officer, Lian Ng of Aoraki Energy, adding that “the ability to navigate these uncertainties will distinguish the winners from the laggards.”

Final Thoughts

With more than 500 respondents, the Mood of the Boardroom survey provides a robust snapshot of the current zeitgeist in New Zealand’s corporate governance. Skills, tax, and policy remain the top three concerns for board members, demanding immediate attention and forward‑thinking strategies. The article’s hyperlinks to external reports, governmental drafts, and academic insights not only validate the findings but also offer practical resources for boards seeking to align their governance practices with the evolving business environment.

In a nutshell, the report signals a pivotal moment: boards are no longer passive observers; they are active strategists, tasked with steering their organizations through a landscape that is increasingly shaped by digital transformation, fiscal shifts, and global policy changes. The next chapter for New Zealand companies will likely hinge on how effectively their boards can translate these concerns into actionable, future‑proof governance frameworks.