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- CEOs to give NAFTA region, specifically
- People viewed as the most vital asset of a company
- Corporate governance costs seen as a hindrance to growth
- Reputation as the newest subject in the survey
The NYSE Group, Inc. today released its 2nd annual CEO Report presenting the views of more than 200 CEOs from corporations in 21 countries. The base of companies participating in the report represent more than 50 industries and total $1.7 trillion in combined global market capitalization. In CEO Report 2007 , these corporate leaders reflect on the importance of people as main revenue drivers, underscore the increased focus on
“This survey provides timely and unique insight into the minds of global chief executives,” said Noreen Culhane, Executive Vice President of the NYSE Group. “Their informed views on the challenges and opportunities facing business leaders today and more importantly their expectations for tomorrow’s business clientele makes this instructive reading.”
Valuing People, Planning for Growth
Eight out of ten NYSE CEOs agree that operational efficiency, driven by employees, will have the greatest impact on internal profitability in 2007; 75% view this as the most vital asset of a company, and half of all CEOs surveyed will increase their employee education and retention programs. E*Trade Financial (NYSE: ET) CEO Mitch Caplan says, "I want the people who join E*Trade Financial to know that they are working for a dynamic, creative company that values their input. We make the investment in our people because they are the core of what we do."
More than 75% of all CEOs cite NAFTA as an area they will focus on throughout 2007, with many (66%) specifically concentrating on the U.S. Almost all CEOs surveyed (95%) say the
Governance and Compliance
CEOs raised concerns over governance rules and compliance costs, with almost all (97%) raising the issue of increased compliance expenditures. One-third stated they spend at least twice as much as in 2003 to comply with regulatory requirements; 40% suggest higher costs resulted in delays and/or cancellations in expansion, 64% state that strategic planning has been affected, and more than half say that infrastructure has suffered. Almost nine out of ten CEOs spend more time on regulatory issues, and more than 25% spend less time on daily management.
Although only 6% of CEOs say they believe investors are better served, many saw a positive outcome of SOX and NYSE governance rules: 57% state they had a positive relationship with their boards, and 53% say that board members are now an excellent source of advice and insight. “Today’s directors are committed and hardworking – They want to be part of the team. And that makes them much more empowered to make a contribution” explains Richard Parsons, Chairman and CEO of Time Warner Inc. (NYSE: TWX).
Role of the CEO
The role of the CEOs has become less attractive in recent years. Nearly 100% state their jobs put them at greater personal legal risks than three years earlier. With 96% reporting their jobs as more time consuming, two thirds of CEOs find that running the show is simply less fun.
Reputation Management
A new aspect of this year’s survey was the response to the importance of managing a company's reputation, with 16% of CEO’s reporting that they could do more to protect this valuable intangible asset. The most common ways to monitor reputation include information discussions with relevant parties, followed by discussions with or surveys of employees.
Click here for the NYSE CEO Report 2007 .
Background:
In 2006, Time Inc. Content Solutions commissioned Opinion Research Corporation, an independent global strategy and market research and consulting organization, to conduct on behalf of NYSE Group Inc. the NYSE CEO Survey 2007, the second annual survey of CEOs of NYSE-listed companies. A questionnaire was administered via the Internet, telephone and mail between February and April 2006, generating 205 responses (a 10% response rate) from leaders in more than 20 countries and 50 industries.
