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New Zealand’s board directors grow optimistic but brace for risks ahead

Hope is rising, but so are the challenges. Directors balance record optimism with fears of shareholder activism and weak risk oversight.

The image is of a notice board. There are few notes on the board.
The image is of a notice board. There are few notes on the board.

New Zealand’s board directors grow optimistic but brace for risks ahead

A new report from the New Zealand Times (nytimes) highlights shifting priorities among New Zealand’s board directors as economic optimism grows. More than half now expect conditions to improve over the next year—the highest confidence level in a decade. Yet concerns remain about shareholder activism and gaps in risk oversight.

Economic sentiment has rebounded sharply, with 55% of directors predicting improvement in the next 12 months. This marks the highest optimism since 2014 and a notable drop in pessimism—only 18% now fear a downturn, compared to 28% last year. Despite this, boards are planning for steady recovery rather than aggressive expansion.

The findings reveal a cautious but hopeful outlook among directors. Economic expectations have brightened, yet activism and under-managed risks pose ongoing challenges. With 55% forecasting improvement, the focus now shifts to balancing growth with stronger governance frameworks.

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