According to a newly released report by NYSE
Euronext (NYX), 62% of public companies and 71% of private firms are
likely to expand and add jobs in 2012 despite rising concerns over
economic uncertainty and political instability, regulatory and tax
policies, protectionism and international trade. The 2011 NYSE Euronext
Report represents the views of CEOs of publicly held companies and, for
the first time, CEOs of private or emerging companies including private
equity and venture-backed firms as well as MBA students, dubbed
"aspiring corporate leaders".
The 2011 NYSE Euronext CEO Report, now in its 7th year, is an
expansive cross-generational survey that provides leadership insights on
the economy and growth, the workforce and job creation, reputation and
brand management, the CEO of the future, and social media. Respondents
include 317 CEOs of NYSE-listed companies from more the 25 countries,
119 CEOs of emerging private companies in the U.S., and more than 200
U.S-based MBA students. Global market research firm ORC International
conducted the survey on behalf of NYSE Euronext. To view the results of
the 2011 NYSE Euronext CEO Report, go to:
www.nysemagazine.com/report-archive/NYSE_2011_CEO_Report_final.pdf
"Businesses are expecting growth and are poised to innovate, expand and
create jobs," said Duncan
Niederauer, CEO, NYSE Euronext. "They are guardedly optimistic
toward the future and understand that creating sustainable, long-term
growth and jobs will be driven largely by the private sector, especially
small- and medium-size enterprises. Weighing heavily on this leadership
group is economic and political uncertainty, taxes and trade, and trust
and confidence in our financial system."
"The three generations of current and aspiring leaders represented in
the survey are bullish on growth while navigating challenging economic,
policy and regulatory obstacles," said Jeffrey
Resnick, global managing director for ORC International. "Despite
experiential and generational differences, respondents surprisingly
share similar views on several topics including concerns over
protectionism and financial and political stability as well as
regulation, taxation and education. Their views diverge when it comes to
doing business in the future, particularly on the impact of social media
and innovation."
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See video of Berkshire
Hathaway Chairman and CEO Warren Buffett, Business
Wire Chairman and CEO Cathy Baron Tamraz, and Alexandre Douzet,
Co-Founder and President of TheLadders.com
on job creation, entrepreneurship and next-generation CEOs: http://www.nysemagazine.com/CEOreportvideo
The Economy and Growth
A large majority of respondents rate the global economy as "fair" to
"poor," with emerging-company CEOs (96%) the most downbeat versus 85% of
public company CEOs and 75% of MBAs. Most CEOs expect their companies to
grow through 2012, including 30% of public company CEOs and 45% of
emerging-company CEOs who anticipate significant growth.
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With respect to spending, public companies are budgeting for larger
increases for capital expenditures, energy and regulatory compliance.
Emerging companies are increasing spending at above-average rates for
R&D, technology, marketing and PR and customer-relationship management;
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CEOs are highly concerned about protectionism in China, India and
Brazil, while emerging-company CEOs' concern extend to South America
and the Middle East;
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U.S. and Western Europe are the most important regions strategically,
followed by China;
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European CEOs are slightly less gloomy about the economy in their
countries despite recent financial turmoil;
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Concerns over possible protectionism or trade restrictions in
China are the highest for any region, followed by India and Brazil;
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The financial stability in Western Europe and the U.S. remain
significant issues; CEOs have growing concerns about the political
stability in the Middle East, followed by Mexico, and with the
political stability of the U.S. and Western Europe;
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Emerging-company CEOs have greater worries about the political
stability of India, China and Brazil, possibly reflecting the nature
of their business processes;
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The corporate tax structure in the U.S. and Western Europe are
potential impediments to growth, with those regions rated the most
unfavorable in terms of overall corporate tax structure through the
next three years;
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60% of CEOs say the U.S. has the most unfavorable corporate tax
environment, worse across any region tested;
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By more than a 4-1 margin, CEOs believe the corporate tax
environment in Western Europe will be unfavorable rather than
favorable during the next three years;
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CEOs and MBAs see merger and acquisition activity as exceptional or
good through 2012.
Workforce and Job Creation
Despite overall negative views on current economic conditions, most CEOs
are planning to add to their company's workforce through 2012, with
emerging companies expecting significant increases in employment. Most
of the new jobs will be in corporate home markets, including the U.S.
and Europe. Surprisingly, despite stubbornly high unemployment levels in
the U.S., three in four CEOs are having difficulty in finding qualified
candidates and a majority rate the U.S. education system far worse than
non-U.S.