Xero founder Sir Rod Drury denies misconduct claims by former staffer

1:35pm
Sir Rod Drury.

The 2026 New Zealander of the Year and founder of Xero, Sir Rod Drury, has denied claims of misconduct against a former staffer as it was revealed a police complaint had been laid.

The complaint alleged misconduct when former Xero staffer Ally Naylor was a junior Xero employee in 2017.

Now, Drury has released a response to those complaints, labelling his relationship with Naylor as a "limited, consensual relationship".

The accounting software company had launched a review into its handling of the allegations at the time.

In a statement, Drury said he had always tried to be "open and honest throughout his life".

"I do not intend to engage in public back-and-forth on private matters or cause further distress to those involved. However, given the relentless nature of the reporting, I believe it is important to provide context.

"I reject any allegation of wrongdoing. Reports have mischaracterised the nature of a friendship over several years. Ally Naylor and I had a limited, consensual relationship 10 years ago."

Drury said Naylor had been a "willing participant" in that "relationship", and it was based on working closely together and having children of a similar age.

"We spent time together socially, including her arranging a visit to my holiday home over Summer.

"I have given that detail reluctantly to give more context and accuracy to the nature of the relationship because the media reporting has been selective and misleading. Any other relationships I had over that period were consensual and mutual."

He said Xero undertook an investigation in 2017/2018, and until then, he had "no idea" Naylor viewed the relationship as anything other than "consensual and mutual".

"After the investigation concluded, I stayed on the board for several years. From my perspective the matter was closed.

"I hope this public experience and scrutiny doesn't dissuade other New Zealanders from participating in public awards and honours.

"I know I may be criticised by some for making this statement but, given the level of attention and the way this has been reported, I believe it is important to set the record straight for my sake and my family's. I would like to continue focusing on the New Zealand Inc projects, thought leadership and the many philanthropic initiatives I've dedicated my post-career life to."

Last week Naylor told RNZ she expected to speak to police about her complaint this week.

Police have refused to confirm to RNZ whether they were investigating Drury, who founded Xero in 2006 and was its chief executive until 2018.

rnz.co.nz

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