Optimism and activism: key themes in 2025 Director Sentiment Survey

Directors see a steadier economy ahead, but shareholder activism and risk governance are climbing the board agenda, according to the 2025 Director Sentiment Survey. 

“This is the highest level of optimism about the prospects for the national economy that we have seen since the survey began in 2014,” says Guy Beatson, General Manager of the IoD’s Governance Leadership Centre.

The survey, produced by the Institute of Directors in association with ASB, was released this morning. 

This year, 55% of directors said they expect the New Zealand economy to improve over the next 12 months – up slightly from 52% in 2024 and significantly from 28% in 2023. However, optimism is tempered with caution.

“Despite the improved outlook, boards continue to prioritise cost control, cashflow and productivity, reflecting uncertainty about the pace of recovery,” says Beatson.

“Directors are planning for steady recovery rather than rapid growth, with resilience and operational discipline top of mind.”

A shift in sentiment – fewer pessimists

While the rise in optimism is modest, the most significant shift is in declining pessimism. ASB Chief Economist Nick Tuffley notes that fewer directors now expect the economy to worsen – just 18%, compared with 28% in 2024.

“Most of those people have moved into the neutral camp,” says Tuffley.

“There are two main drivers for taking the economy forward that directors are likely to be picking up on. One is the lagging impact of past and future interest rate declines, which will increasingly support household spending, the housing market and, eventually, construction.

“The other is the good run of export incomes in some key industries, although the fruits of this are likely to be gradual in coming through and concentrated in particular regions rather than felt nationwide.”

Activism rising – especially in the public sector

Beyond the economy, directors are bracing for a rise in shareholder and member activism, with 44% saying activism will have a moderate or high impact on their board over the next two years (10% high, 34% moderate).

Beatson says the type of organisation shapes how directors perceive this risk.

“Directors in local authorities (33%), Māori organisations (23%) and government organisations (21%) anticipate shareholder or member activism having a high impact on their boards over the next two years.

“By contrast, only 9% of large private companies, 8% of not-for-profits, 9% of small companies, and just 2% of publicly listed company directors say the same.”

Beatson says this suggests activism is often seen less as a market-driven concern and more as a stakeholder or political dynamic, especially for organisations with public accountability or partnership responsibilities.

Risk management is solid, but not yet future-fit

Most directors are confident in their board’s overall risk approach, with 69% saying systems are appropriate. However, attention to emerging risks remains uneven.

Beatson says there’s a gap between awareness and action in several areas.

• • 57% of directors say their board regularly reviews cyber risks (down from 62.2% in 2024)
  • Just 46% say their board reviews physical climate risks (such as storms, floods or droughts)
  • Only 20% say their board is actively monitoring modern slavery risks
  • Privacy oversight also remains limited, with 57% of boards reviewing data protection risks

“It seems awareness is ahead of action at this point, in some of these more recent and fast-moving areas,” says Beatson.

Survey snapshot

The 2025 Director Sentiment Survey reflects insights from more than 900 directors across Aotearoa New Zealand. Respondents span a cross-section of governance roles, with 46% serving as board chairs. The survey provides a unique barometer of director views on governance, risk and the economy.

Read the survey