Insights from Māori directors

Benchmarking director fees in different sectors of the Māori economy is one of the goals of the 2024 Directors’ Fees Report.

The Report, produced by the IoD and EY, provides fee comparisons that enable directors to understand their value, while giving shareholders and stakeholders a basis to assess whether fee decisions are being made fairly and appropriately.

There has historically been a low response rate from directors within the Māori economy, which has made it difficult to assess whether fee levels are being set fairly, consistently and prudently, says IoD councillor Dr Jim Mather CFInstD.

“It’s really important that the IoD gathers data on Māori entities, whether they are rūnanga, commercial holdings companies or subsidiaries of Māori entities because there is such a lack of information at present,” he says.

“At the moment, it is really hard to gauge whether progress is being made in terms of remuneration. It’s an area we don’t have much insight into, apart from anecdotal information. We would like to see this year’s report supported not only by Māori directors but specifically directors in Māori entities.”

The Directors’ Fees Report is based on a survey of more than 1,000 directors. IoD members can contribute to it here.

Understanding sector trends and movements in the broader governance environment can inform decisions about what an appropriate fee might look like in different industries, Mather says.

This in turn gives fee setters the information they need in order to make an informed decision and individuals a sense of the market value of their governance work.

“It’s about benchmarking. It’s about providing assurance to boards and stakeholders. It’s about understanding what is happening in the growing Māori economy – which is very relevant to the overall wider picture of director remuneration.”

Māori currently make up make up 9.4 per cent of the IoD’s membership and Mather says more awareness of their experiences will help the organisation support them better, for the greater good.

“Being able to provide this information will be to the benefit of Māori and to general understanding of this area of governance. I would exhort those who are in a position to contribute knowledge to do just that.”