Top 5 issues for directors in 2026: are you ready?

Directors in Aotearoa New Zealand are operating in a high-stakes environment – one that demands sharper foresight, smarter decision-making and stronger leadership from the boardroom. As 2026 approaches, governance is being redefined by accelerating change and rising complexity.

From governing for growth in a low-productivity environment to the rise of agentic AI, the pressures on board performance, accountability and ethics are intensifying. Chairs and directors are expected to navigate greater ambiguity with stronger judgement – and to do so while earning the trust of stakeholders, regulators and society at large.

The top five issues for 2026 are based on analysis by our Governance Leadership Centre in association with ASB, with insights from the Director Sentiment Survey. They reflect emerging trends in governance, both in New Zealand and globally.

1. Governing for growth

Boards are being judged less on reassurance and more on results. In a low-growth environment, governing for growth has become a deliberate act – not something delivered by the economic cycle. Directors are expected to be clear about where their organisation creates value, to direct capital and capability with intent, and to turn technology and data into real productivity gains rather than added cost.

What distinguishes effective boards in 2026 is discipline matched with ambition. Growth now depends on sequencing investments, testing early signals of performance, and being prepared to redirect resources when outcomes fall short. Capital, data, talent and time are under closer scrutiny than ever, with investors, funders and communities looking for evidence that growth is credible, sustainable and repeatable.

“Growth, from here, won’t just happen to us – it’ll be something we have to govern into existence.”
– Nick Tuffley, ASB Chief Economist

2. Geopolitical climate

Geopolitics has moved from background noise to a core strategic consideration for boards. Trade, regulation, data controls, environmental standards and security concerns now shape access to markets, cost structures and reputation as much as customer demand. Global settings are fragmenting into power-based blocs, and climate and resource policy are increasingly embedded in trade itself.

For boards, the task is foresight and resilience. Single-market strategies and assumed logistics stability are no longer sufficient. Directors must understand where exposure sits across supply chains, data infrastructure and markets, and ensure their organisations can operate credibly across multiple regulatory and environmental regimes. Geopolitical literacy is becoming a marker of governance quality.

“Whether it’s supply chains, market access, regulatory shifts or trade rules – geopolitics is now central to strategy. Pretending otherwise isn’t going to cut it.”
– Charles Finny CFInstD, Chair of NZTE and NZ Port Company CEO Group

3. AI agents of change

AI has crossed a threshold. It is no longer just supporting decisions; it is making them. Agentic AI systems now plan, analyse and act across core organisational functions, reshaping operating models in real time. The issue is no longer adoption, but assurance – knowing where automation sits, what it decides, and whether its outputs can be trusted.

As AI agents accelerate the pace of decision-making, traditional governance and assurance models are under strain. Accountability still sits with the organisation – even when decisions are made by software. Boards are increasingly expected to be able to explain how decisions were authorised, what data informed them, and whether those processes can be verified. Oversight of automated decision-making has become a test of governance credibility.

“What you don’t govern, governs you.”
– Lee Wilson, AI Changemaker of the Year 2025

4. Chair-CEO dynamic

The relationship between the chair and chief executive is the hinge on which governance performance turns. As board agendas grow heavier and scrutiny sharper, this dynamic determines whether information flows freely or fractures under pressure. Effective partnerships are built on trust and challenge – not harmony – with clarity of roles and disciplined communication.

When the relationship works, issues are surfaced early, decisions are well-tested and the board maintains confidence in moments of stress. When it breaks down, silence creeps in, authority blurs and governance credibility erodes quickly. In 2026, boards will be increasingly judged by the quality of this relationship and the composure it delivers when stakes rise.

“If a chief executive starts going quiet, that’s a warning. Silence is never a good sign.”
– Helen Robinson ONZM, CMInstD, entrepreneur and professional director

5. Rise of committees and advisory boards

Governance design is evolving in response to complexity. Single-table board models are no longer sufficient on their own. Committees are providing depth on assurance and compliance, while advisory boards are being used to bring specialist, time-bound insight on issues such as technology, sustainability and market entry.

The challenge is not adding more structure but designing better flow. Insight must reach the board at the right time, authority lines must remain clear and accountability must not be diluted. When well designed, committees and advisory boards sharpen decisions and reduce noise. When poorly designed, they slow momentum and fragment governance.

“The best governance systems aren’t about more structure: they’re about better flow – the right insight, at the right time, in the right hands.”
– Louise Broekman, founding director of the Advisory Board Centre

The IoD has produced a companion reader on the Top 5 issues for directors in 2026. Each section includes first-person insights, governance questions and provocations to support deeper discussion and decision-making in the boardroom. The reader is exclusive to IoD members – download the full reader here.