News and Articles
Disaster a cautionary tale to CEOs everywhere
16/08/2010
Read Nicki Crauford's article (DominionPost, Monday 16 August 2010). Midway through the BP oil spill crisis the company’s CEO Tony Hayward made a comment about “wanting his life back”. He then took another wrong tack by taking a break to sail his yacht in the less than crystal clear waters of the Solent. This sparked more jibes about his competence as CEO, earning him the title Captain Clueless.
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Tackling gender imbalance at board level
5/07/2010
Read Nicki Crauford's article (DominionPost, Monday 5 July 2010). In a piece of corporate theatre Bruce Sheppard of the NZ Shareholders Association would be proud of, a group of women wearing fake beards stormed the podium at Veolia Environment’s crowded shareholders’ meeting in Paris last month to challenge Chairman Henri Proglio over the gender makeup of his overwhelmingly male board.
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Keeping it in the family - and successful
18/06/2010
Read Nicki Crauford's article (NBR, Friday 18 June 2010). Family companies are all around us. The figures speak for themselves. In New Zealand around 220,000 registered businesses, between them generating up to 80% of all employment and 65% of GDP are family operations of one sort or another
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Goldman Sachs needs some short-term smarts
17/05/2010
Read Nicki Crauford's article (DominionPost, Monday 17 May 2010). Last month the Securities and Exchange Commission (SEC) charged Goldman Sachs with fraud, accusing the Wall Street bank of misleading investors in subprime securities that turned sour with a complex mortgage-backed product known as Abacus which it sold knowing that it would fail.
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Annual General Meeting
28/04/2010
Around 80 members attended the Institute of Directors' Annual General Meeting held on Thursday 15 April 2010 at the IoD's offices, 50 Customhouse Quay, Wellington.
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Public will benefit from directors raising the bar on standards
6/04/2010
Read Nicki Crauford's article (DominionPost, Tuesday 6 April 2010). Most analyses of negative events, be they corporate failures, the global financial crisis (GFC) or the New Zealand finance industry meltdown, will at some stage focus attention on standards. The conclusion drawn will almost always be that either the system failed its users or vice versa. Sometimes both.
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Director Accreditation Scheme - Revision of Rules
9/03/2010
As already conveyed to members, the IoD is changing the Rules of its Director Accreditation Scheme. The changes to the Director Accreditation Scheme Rules are effective from 1 June 2010.
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The principle and practice of diversity
5/03/2010
Read Nicki Crauford's article (NBR, Friday 5 March 2010). If the job of a board is to think strategically, looking to improve company performance, create shareholder value and position itself for greater sustainability and growth, then the best diversity target would be to stock the board with smart people who are challenging yet complementary.
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Small companies could gain a lot by adopting formal governance
1/03/2010
Read Nicki Crauford's article (DominionPost, Monday 1 March 2010). The Institute of Directors launched its new website recently, www.firstboards.iod.org.nz. Specifically designed to engage with the small to medium enterprise market, it promises to energise, refresh, grow and invigorate small to medium enterprises in the area of governance.
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Fresh Thinking: First Boards
18/02/2010
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The Hon. Gerry Brownlee was guest of honour at a celebration at National Office on Monday 15 February to mark the launch of the new IoD “satellite” website www.firstboards.iod.org.nz which is designed to engage with the SME market on the value good governance can add, and illustrate the importance of good governance structures and systems and the role of independent directors.
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Fresh Thinking on SME Governance
9/02/2010
An easy–to–use website will shortly offer small and medium size enterprises (SMEs) practical guidance for improving their systems of governance.
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Band of brothers mentality threat to economy
14/12/2009
Read Nicki Crauford's article (DominionPost, Monday 14 December 2009). In his "heads up" before the battle of Agincourt in Henry V, King Harry said: “We few, we happy few, we band of brothers”.
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Are independent directors more than just Christmas tree decorations?
5/11/2009
Read Nicki Crauford's article (The Independent, 5 November 2009).The financial crisis has tested many organisations across the globe and some have been found wanting. Many had a hand in the mistakes: banks, regulators, credit agencies, governments and, some say, unquestioning consumers who were the willing buyers of cheap mortgages and loans that became financial weapons of mass destruction.
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When things go wrong, call the chairman
26/10/2009
Read Nicki Crauford's article (DominionPost, 26 October 2009). Even in the best companies, things do not always go well.
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Hardie case sets tougher rules for directors
9/10/2009
Read Nicki Crauford's article (NBR, 9 October 2009). The most recent judgment in the long-running James Hardie case in Australia provides important guidelines on the scope and content of the duties of executive officers and directors of publicly listed companies when considering strategic company decisions and market-sensitive information.
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'Tis the season to face investors
17/09/2009
Read Nicki Crauford's article (The Independent, 17 September 2009). Fronting up to an annual general meeting in times of plenty must surely be a pleasurable experience for directors. They are, after all, fiduciaries acting on behalf of shareholders, and a company’s purpose is to continue to perform satisfactorily and provide adequate returns for shareholders.
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Mega salaries - justifiable or greedy?
14/09/2009
Read Nicki Crauford's article (DominionPost, 14 September 2009). Telecom CEO Paul Reynolds’ remuneration package recently came under scrutiny with comments ranging from him being worth his weight in gold, his overall package being obscene and that compared to the Wall Street payouts his performance-related bonus was “peanuts”.
It doesn’t matter who said what but each is worth examining.
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Rising price of corporate reputation
21/08/2009
Read Nicki Crauford's article (NBR, 21 August 2009). The biggest risk any company faces is the loss of its good name. Boards and senior executives are acutely aware of how serious today’s reputational challenge is.
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When things are murky, investors flee in panic
3/08/2009
Read Nicki Crauford's article (DominionPost, 3 August 2009). The Asian Crisis started on 2 July 1997 with the floating of the Thai baht. It immediately lost 50 percent of its value and triggered a financial tsunami that first swamped Asia, spread to Russia where the Moscow Stock Exchange collapsed, then migrated south to Turkey.
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Strategies to get winning sports administrators
2/07/2009
Read Nicki Crauford's article (The Independent, 2 July 2009). As we prepare to host the Rugby World Cup in 2011, it's timely to reflect on governance in sport. American baseball great Babe Ruth said: “The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars, but if they don’t play together, the team won’t be worth a cent.”
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Trust central to good governance
22/06/2009
Read Nicki Crauford's article (DominionPost 22 June 2009). Confucius told a disciple three things are necessary for government: food, weapons and trust. If a ruler is struggling to hold on to all three, first relinquish weapons, and then food. Trust must be retained until the very end. For ‘without trust’, Confucius concluded, ‘we cannot stand’.
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Women on Boards
21/05/2009
Women are still under-represented in the upper echelons of business, and in an effort to address this, the Ministry of Women's Affairs, Business NZ and the Institute of Directors have jointly produced a publication entitled Women on Boards.
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Age and wisdom: when it's time to move on
14/05/2009
Read Nicki Crauford's article (The Independent, 14 May 2009). For a feel-good movie it is hard to go past Young at Heart, a documentary about a group of senior citizens who perform contemporary and classic rock and pop songs such as the Ramones’ punk classic, I Wanna be Sedated. Old fogies singing songs, or something else?
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Learning from history: ethical conduct is a business basic
11/05/2009
Read Nicki Crauford's article (DominionPost 11 May 2009). The historian G M Trevelyan commented that the statements ‘history repeats itself’ and ‘history never repeats itself’ are about equally true. “We never know enough about the infinitely complex circumstances of any past event to prophesy the future by analogy" he said.
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NBR, 24 April 2009, Table Talk by Nicki Crauford
24/04/2009
The traditional American corporate governance model of a combined chairman and chief executive is being challenged. In good times praised is heaped on the strong leader because performance speaks for itself. Nevertheless the adage ‘power corrupts’ did not get to where it is today without there being some supporting evidence.
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Clear communication vital across the board
26/03/2009
Read Nicki Crauford's article (The Independent, 26 March 2009). Communication is a good thing. Both attentive listening and clear expression of ideas are essential skills across all endeavours. This is equally true for a board of directors, particularly in such straitened times.
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Crisis shows good directors can keep companies afloat
23/03/2009
Read Nicki Crauford's article (DominionPost 23 March 2009). The 1957 film classic Twelve Angry Men tells the story of a white, middle-aged jury deciding what appears to be an open-and-shut case. The plot revolves around their difficulty in reaching a unanimous verdict due to jurors' prejudices and the group’s willingness to let closely-held attitudes harden.
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NBR,13 March 2009, Table Talk by Nicki Crauford
13/03/2009
Historically, corporate America has favoured a governance model where the chief executive chairs the board. In good times, praise is heaped on the strong business leadership that such a system cultivates.
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Crisis moves focus to role of directors
9/02/2009
Read Nicki Crauford's article (DominionPost 9 February 2009). Can independent directors be more than just Christmas tree decorations? The financial crisis has severely tested many organisations across the globe and some have been found wanting.
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Conflicts of interest - managing the unavoidable
29/01/2009
Read Nicki Crauford's article (The Independent, 29 January 2009), Governance, at its essence, is all about the simple human quality of trust. One person entrusts another with assets of value to own and operate in accordance with an agreed set of expectations.
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NBR, 23 January 2009, Table Talk by Nicki Crauford
23/01/2009
Legal incentives for directors to act honestly, carefully and diligently are obviously desirable but finding the balance between personal and corporate accountability and encouraging appropriate business risktaking is a challenge.
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Directors have to face the music
15/12/2008
Read Nicki Crauford's article (DominionPost 15 December 2008). Fronting up to an annual meeting in times of plenty must surely be a pleasurable experience for directors. They are, after all, fiduciaries acting on behalf of shareholders, and a company’s purpose is to continue to perform satisfactorily and provide adequate returns for shareholders
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NBR, 12 December 2008, Table Talk by Nicki Crauford
12/12/2008
Australian chief executives are performing better but departing sooner, making retention a challenging task for boards
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NBR, 21 November 2008, Table Talk by Nicki Crauford
21/11/2008
Long before today's market crisis pounded individual savers, governance professionals lamented the lack of input from retail shareowners.
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Directors' fee increase 'public relations disaster'
10/11/2008
Read William Whittaker's article (DominionPost 10 November 2008). There was widespread outrage at Contact Energy’s annual meeting two weeks ago at the prospect of simultaneous increases - 100 per cent in the directors’ fee pool and 10 per cent in power prices.
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NBR, 24 October 2008, Table Talk by Nicki Crauford
24/10/2008
During a downturn, a thoughtful acquisition strategy is particularly important, but many companies don’t have one. It’s gut-check time for directors and their chief executives
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Learning how to govern for high growth
23/10/2008
Read Nicki Crauford's article, (The Independent 23 October 2008), Much has been written on the challenge of raising and maintaining New Zealand’s living standards and prosperity in a globalised world economy
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Voice of experience or silly old codgers?
29/09/2008
Read Nicki Crauford's article (DominionPost 29 September 2008). Age is often cited as a determinant of suitability for office, youth being synonymous with inexperience and advanced years as an indicator of obsolescence.
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NBR, 26 September 2008, Table Talk by Nicki Crauford
26/09/2008
Funds used to play their proxy moves in private, leaving corporates and other investors guessing about their voting stances until the annual meeting. Expect that era to fade.
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Company success starts at the top
18/09/2008
The Independent (18 September 2008), In a time of corporate chaos and failed leadership, Nicki Crauford ponders the most important hiring decision - the boss.
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NBR, 29 August 2008, Table Talk by Nicki Crauford
29/08/2008
Paying for performance - PhiTrust Active Investors, the Paris-based fund manager, has come up with a no-nonsense approach to end fat executive payouts at companies that lose money.
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NBR, 18 July 2008, Table Talk by Nicki Crauford
21/07/2008
How to keep baby boomers - Don’t make assumptions that your senior workers want to retire completely...
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Why two into one doesn't always go
23/06/2008
Read Nicki Crauford's DominionPost article (23 June 2008). Electing a director to the dual role of company chief executive and chairman of the board is a route that may seem attractive but it can lead to potential difficulties
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Disclosure always pays
20/06/2008
Read Nicki Crauford's NBR article. (20 June 2008).
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New Zealand's Political Economy
9/06/2008
Read an article by Kerry McDonald published in the June edition of the IoD's Boardroom magazine.
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Nationalising the rail
26/05/2008
Read Nicki Crauford's article in the NBR (23 May 2008). Restored government ownership of the railway operations will present some interesting issues to the incoming board
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It's not just the shareholders holding the whip
22/05/2008
Read Nicki Crauford's article in the Independent Financial Review (21 May 2008). Directors must act in the company's best interests, and that can include considering its effect on wider society.
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Financial Advisors Bill
19/05/2008
Read the submission from the Institute of Directors on the additional consultation document released during April relating to the Financial Advisors Bill.
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Managing Conflict
13/05/2008
Read Nicki Crauford's DominionPost article on Managing Conflict (12 May 2008). Conflict of interest in the boardroom can represent a minefield for directors in a country with such a small population as New Zealand
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Conflicts of interest
28/04/2008
Read Nicki Crauford's article in the NBR (24 April 2008). A simple pre-requisite for all board members is that they must rigorously and regularly check their own and each other’s interests for possible conflicts
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Poor governance lowers share price
14/04/2008
Read Nicki Crauford's article in the NBR (11 April 2008). Companies that persistently flout corporate governance rules often make bad stock market investments.
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Balance essential to governance of co-operative enterprise
8/04/2008
Read Nicki Crauford's DominionPost article on governance of co-operative enterprises (7 April 2008).
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Board basics: Add value
27/03/2008
Read Nicki Crauford's article in the Independent Financial Review (26 March 2008). A board's first priority is adding value to a commercial enterprise.
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Say on Pay
7/02/2008
Read Nicki Crauford's DominionPost article (7 February 2008). One issue which currently is very much alive in international governance is the “say on pay” movement, which is pressing for shareholder capability to propose and pass advisory motions on CEO and board remuneration.
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Directors and Board Diversity
1/02/2008
Read Nicki Crauford's article in the Independent Financial Review (30 January 2008). Calling for diversity on company boards is an attractive and easily made statement. It sounds so correct and incontrovertible.
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Directors walk fine line when companies fail
28/11/2007
Read Nicki Crauford's DominionPost article (22 November 2007). Failure is part of business. Some companies will thrive, others will fail.
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Of Nails and Finance Companies...
9/10/2007
Read Nicki Crauford's latest DominionPost article which comments on the recent spate of collapses among New Zealand's finance companies.
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2007 Distinguished Fellows
3/10/2007
Distinguished Fellow Awards are presented annually to members who have sustained a prominent and distinguished career as a director; or who have given outstanding participation and services to the IoD or eminent or special contributions to the community or business.
The Institute of Directors is pleased to announce the following Distinguished Fellows for 2007.
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Business Briefing
19/09/2007
Read Nicki Crauford's address to the New Zealand Business & Parliament Trust on 18 September.
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A Note on Directors and their Role
5/09/2007
Read an article from the September edition of the IOD's monthly magazine, Boardroom, by Kerry McDonald and Richard Baker, which makes some observations on the role of directors given two recent examples of less than stellar corporate performance - Bridgecorp and Stresscrete.
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Good Governance benefits all organisations
22/08/2007
Read Nicki Crauford's DominionPost article (20 August 2007). Recent governance news from England draws an interesting parallel for New Zealand.
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The Midavia Settlement
12/07/2007
Read Nicki Crauford's article in the Independent Financial Review (11 July 2007). The recently announced settlement of the Securities Commission’s action against Midavia Rail Investments Limited BVBA and David Richwhite is interesting for three reasons.
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Finding new directors
2/07/2007
Follow this link to read Nicki Crauford's comments in the Herald on finding directors in New Zealand
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Putting Your Faith in Directors of the State
26/06/2007
Read Richard Baker's DominionPost Article (25 June 2007).
Peter Drucker, the original management guru, remarked that whenever you see a successful business someone once made a courageous decision. Good decisions preface business success and quality decision making is the hallmark of an effective board of directors.
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Directors' Details
11/05/2007
The IoD has emailed all of its members requesting views on any issues relating to the disclosure of director information on the Companies Office Register.
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Trust and Conflicts of Interest
11/04/2007
Read Nicki Crauford's latest article in the DominionPost 9 April 2007.
Governance, at its essence, is all about the simple human quality of trust. One person entrusts another with assets of value to own and operate in accordance with an agreed set of expectations.
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Conflicts of Interest
30/03/2007
Read the transcript of Richard Baker's contribution to the panel discussion on conflicts of interest and the ADHB, National Radio Afternoon with Jim Mora, 29 March 2007.
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The Weldon Debate
23/03/2007
Read Nicki Crauford's article published on line in the New Zealand Herald (22 March 2007).
The current furore raging around NZX and its chief executive overlooks an important issue which has only partially surfaced in the discussion to date.
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Governance Snippet
9/02/2007
Regulation is often bemoaned in governance circles. Cost, complexity and risk see companies delisting from public exchanges or relocating to less stringently governed locations. Sarbanes-Oxley is a common culprit. Nice then to see some evidence which pricks this orthodox thinking!
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SOX and Globalisation
8/02/2007
Read Nicki Crauford's latest DominionPost article (5 February 2007) on the Sarbanes-Oxley Act 2002 and globalisation.
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Nicki Crauford - Vector Resignations
18/12/2006
Read the transcript of IoD's Nicki Crauford discussing the Vector resignations on National Radio's Morning Report on Monday 18 December 2006
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Richard Baker - Vector Resignations
18/12/2006
Read the transcript of IoD's Richard Baker discussing the Vector resignations on National Radio's Afternoon Panel programme on Thursday 14 December 2006
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Governance more than compliance
13/11/2006
(Dominion Post 13/11/2006) Dr Crauford, CEO of the Institute of Directors responds to Brian Gaynor's NZ Herald article "Directors need entrepreneurial spirit" of September 30th.
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Low Fees Reflect Conservatism
7/08/2006
(Dominion Post 07/08/2006) Dr Crauford, CEO of the Institute of Directors discusses directors remuneration.
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A Guide to Becoming a Director
19/06/2006
(Dominion Post 19/06/2006) Dr Crauford, CEO of the Institute of Directors gives a guide to becoming an independant non-executive director in a privately owned company.
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Three Golden Rules Put Thinkers on Board
16/05/2006
(Dominion Post 16/05/2006) Dr Crauford, CEO of the Institute of Directors discusses three main requirements for the role of a director.
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A League of Extraordinary Gentlemen
7/03/2006
(Dominion Post 07/03/2006) Dr Crauford, CEO of the Institute of Directors discusses a governance case study on the Warriors Rugby League CLub board of directors.
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Variations on a Value Theme
1/08/2005
One way to view business is to see it as risk selection. Successful companies concern themselves only with risks they understand and that they can run profitably (idiosyncratic risk). Risks that are not understood, measurable or controllable are transferred, hedged or otherwise minimised (non-idiosyncratic risk).
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