Fresh probe into handling of former Xero chief executive Sir Rod Drury misconduct complaint

Sir Rod Drury recently received a knighthood and the New Zealander of the Year award. Photo / Jason Oxenham

Tech company Xero has launched a review into misconduct allegations against its former chief executive Sir Rod Drury by a junior female employee.

Drury, who recently received a knighthood and the New Zealander of the Year award, is at the centre of a complaint alleging inappropriate behaviour towards junior Xero employee Ally Naylor.

A Xero spokesperson told the Herald a King’s Counsel had been appointed to look into Naylor’s allegations.

“We treat all allegations seriously. Given the matters raised relate to historical events and confidential matters, we are limited in what we can say.

“Xero’s board and leadership are committed to fully understanding and evaluating the events and Xero’s response with expert assistance.

“We have retained external counsel Maria Dew, KC to assist us in undertaking a review of these matters.”

The company was “committed to maintaining a safe, inclusive and respectful environment for all our people”.

An investigation has been launched into misconduct allegations against Sir Rod Drury. Photo / Mike Scott

Stuff reported misconduct matters were first raised while Drury was chief executive of Xero and Naylor was an employee, in the mid-2010s.

Naylor who lives in Napier, left the company in 2017. She refreshed her claims after seeing Drury win the country’s top community award.

She claimed Drury invited her to his apartment, which was across the road from the Xero office, on multiple occasions in the context of work-related meetings, where he allegedly behaved inappropriately towards her.

She told Stuff the first event happened as she was leaving after accepting an invitation to dinner.

Ally Naylor alleges Drury acted inappropriately with her while she was a junior Xero employee. Photo / Rafaella Melo

“As he was walking me to the door he kind of like stopped the door and was like, ‘I just really want to kiss you’, and I was like um sorry no.. this is just like a lot for my head.”

Stuff reported Naylor first raised concerns in a conversation with her boss in 2016, who suggested she speak to the company’s HR.

But she decided against taking formal action as she was a solo mother and feared for her career progression.

In 2017 on her last day of employment, Naylor wrote a formal complaint to Xero saying “it’s hard to put into words how this has impacted me emotionally”.

“There’s a range of emotions from shame, confusion, fear, to anger and hopelessness. Hopelessness because of the power imbalance between the CEO and me.”

In a phone call with Stuff, Drury said he did not want to talk about Naylor.

“Anything is private between people,” he said, “And I think she was a great employee and a really good person.”

The Herald has approached Dew and Drury for comment.