Rod Drury speaks out after sexual misconduct claim, police complaint
Tuesday, 21 April 2026
New Zealander of the Year Sir Rod Drury has rejected claims of sexual misconduct with a former employee, saying it was a “limited, consensual relationship”.
Last week, Stuff broke the story that Drury faced a misconduct complaint investigation when he was CEO of Xero.
Former IT project coordinator Ally Naylor alleged multiple instances of unwanted sexual contact by Drury at his apartment.
She lodged a formal complaint with Xero in 2017, which led to an investigation, the result of which has not been disclosed.
In a statement on Tuesday evening, Drury said: “Throughout my life I have always tried to be open and honest. This difficult situation is no different and it is why I am making this statement today.”
He said he did 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.’
He rejected 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.”
He said communications showed “a friendship over the course of two years and that Ally was a willing participant in that limited relationship. That friendship was based on us 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”.
Drury said he had provided that detail “reluctantly to give more context and accuracy to the nature of the relationship”.
He said the media reporting had been “selective and misleading”.
He added, “Any other relationships I had over that period were consensual and mutual”.
“It is deeply upsetting to have these allegations made nearly a decade later.”
Drury said the investigation undertaken by Xero was the first time he became aware Naylor “viewed our limited relationship as anything but consensual and mutual”.
“After the investigation concluded, I stayed on the board for several years. From my perspective the matter was closed.”
In response to Drury’s statement, Naylor said, “I note his acknowledgement that a complaint was made and investigated by Xero in 2017. A record of that process exists.
“I stand by my account that this was unwanted and inappropriate sexual contact. A formal complaint is not made lightly, particularly by a junior employee against a well known CEO, at personal and professional risk.”
Naylor has also made a police complaint, and is scheduled to be interviewed this week.
Xero has appointed Maria Dew KC to lead a review of Naylor’s 2017 complaint and how it was handled.
“I am cooperating fully with New Zealand Police and welcome the independent review being led by Maria Dew KC,” Naylor said.
“I invite Mr Drury to publicly confirm that he will not pursue legal action against anyone who wishes to speak about their experience.'
Drury said he had been humbled by support including from many former colleagues. “I continue to maintain deep friendships with many of our Xero family.”
“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.”