Claims against former Xero CEO come after he was knighted in the 2026 New Year Honours
Xero has launched a review into its handling of misconduct allegations involving co‑founder and former chief executive Sir Rod Drury, after a former junior employee went public with claims about his behaviour while leading the company.
The accounting software giant said it had hired external counsel Maria Dew KC to assist in a review of the matters and the company's response, Radio New Zealand reported.
"Given the matters raised relate to historical events and confidential matters, we are limited in what we can say," it told the news outlet.
"Xero's board and leadership are committed to fully understanding and evaluating the events and Xero's response with expert assistance."
Allegations against former CEO
The move follows a Stuff investigation revealing that a former Xero employee lodged a misconduct complaint about Drury in 2017 through the company's whistleblower process, triggering an internal investigation.
Emails from Xero's then‑general counsel confirmed the probe, Stuff reported, but the former employee was never provided with the investigation report or told its outcome.
The employee, who worked at Xero between 2014 and 2017, told Stuff that Drury invited her on several occasions to his apartment across the road from Xero's offices under the guise of work‑related meetings, where she alleges he behaved inappropriately.
She recounted one incident, as reported by Stuff, in which Drury allegedly stopped her at the door as she was leaving and said: "I just really want to kiss you," a proposition she rejected before leaving the apartment.
In a written complaint to Xero in 2017, the former employee described the impact of the alleged behaviour, saying, saying it left her feeling "shame, confusion, fear, to anger and hopelessness."
Other former staff told Stuff they were aware of concerns about Drury's conduct, with one senior manager describing an "in joke" that the chief executive had "favourites."
Approached by Stuff, Drury said he did not accept that he had done anything wrong but nonetheless offered an apology over any distress the former employee felt.
"If I've caused people distress, I would apologise for it. I've always tried to look after staff. We've always had a really good culture and environment," he told the outlet.
He declined to discuss his recollection of the internal investigation and said he was "not acknowledging anything" about it, Stuff reported.
Drury founded Xero in 2006 and served as chief executive until 2018. He remained on the company's board as a non‑executive director until 2023 and still holds a shareholding.
The allegations have resurfaced after Drury was knighted in the 2026 New Year Honours and named the 2026 Kiwibank New Zealander of the Year. The former employee told Stuff those accolades prompted her to speak publicly about her experience.
The New Zealander of the Year Awards Office said in a statement it was not aware of any potential issues before Drury's nomination and that "no evidence was presented or found by the Awards Office to cause concern about his nomination during the 2026 judging process," RNZ reported.
