19 Feb 2011

Directors worried about board standards

7:45 am on 19 February 2011

The head of the Institute of Directors says the standard of boards of directors in New Zealand is dropping and he fears the situation will only worsen.

Institute president Kerry McDonald, who is chairman of accountancy firm Grant Thornton, says boards need to do more to improve the productivity and growth of companies.

He says in the past, many executives spent years working with and being trained by multi-national corporations before moving onto boards.

He says he's very concerned that the incoming generation of directors does not have that sort of experience.

Business New Zealand chief executive Phil O'Reilly says New Zealand needs to widen its pool of potential directors and stop focusing on older white men.