What NZ boards should be asking before hiring their next CEO

Published 4 Jul 2025 | 2 min read

Appointing a new CEO is arguably the most consequential decision a board can make.

A CEO sets the tone for company culture, drives strategic direction, and ultimately determines whether an organisation thrives or falters.

Yet, too often boards focus heavily on experience and track record without digging deeper into the real factors that will influence success.

Before confirming their next chief executive, boards should ask five critical questions that go beyond the CV. 

1. Do they align with our future, not just our past? 

Boards are often tempted to hire a CEO who mirrors what has worked before. But the environment is constantly shifting economically, technologically, and socially. What got the company here may not get it where it needs to go.

Boards must ask: Does this candidate understand the emerging landscape we face? Do they have the capability and appetite to lead us into an uncertain future? 

This means seeking someone who can adapt strategy to evolving market forces, and who sees transformation as an opportunity rather than a threat. 

2. How do they lead people, not just performance? 

Leadership today requires more than delivering shareholder returns, it demands the ability to attract, retain and inspire talent.

Boards should explore a candidate’s leadership style: What is their reputation with teams they’ve led? Can they build psychological safety and performance cultures? How do they handle dissent or crisis? 

A modern CEO needs emotional intelligence, not just business intelligence. Culture and employee engagement are now strategic assets. 

3. Are they truly accountable? 

It’s easy to take credit in boom times. But what about during downturns or underperformance?

Boards should test for humility and accountability: Can this leader take ownership of tough decisions? Will they admit when they get it wrong? How do they handle scrutiny? 

This requires rigorous referencing ideally beyond nominated referees to get unfiltered insights into how the individual has shown up in different contexts. 

4. Are they builders or maintainers? 

Every organisation has different needs at different stages. A turnaround requires different leadership than a scale-up, just as a company focused on innovation requires different thinking than one in a cost-cutting phase.

Boards must ask: Does this candidate bring the right energy and skillset for our current context and future ambitions? 

Hiring a “safe pair of hands” might bring stability, but it may also stall growth if the business needs reinvention. 

5. Will they challenge and be challenged? 

The healthiest relationships between CEOs and boards are marked by open dialogue, not deference.

Boards should assess: Is this someone who will engage constructively with governance? Do they have the strength to challenge board thinking and the openness to be challenged themselves? 

This two-way fit is essential. CEOs must be confident and independent, but not defensive or autocratic. 

Ultimately, selecting a CEO is a decision that goes far beyond skills and experience. It’s about leadership character, cultural fit, and strategic foresight.

Boards that ask the right questions early and often give themselves the best chance of securing not just the right leader for today, but the right leader for what’s next. 

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