Despite the economy, more CEOs feel that compared with three years ago, it is easier to attract customers, employees and investors. Thirty percent of CEOs say it’s more difficult to attract investors, compared with just 19 percent who indicated that last year, and 35 percent say it’s harder to keep them, up from 22 percent in 2007.

Respondents also say shareholders are looking for different criteria when investing in a company. Some 61 percent of CEOs say cash flow from operations is a more important measure of performance than in the past, compared with just 47 percent who cited that gauge last year. Also important are free cash flow (55 percent), stock price and operating income growth (both cited by 50 percent). Less important than last year are net income growth (mentioned by 46 percent, compared with 57 percent last year) and earnings-pershare growth (46 percent versus 56 percent).

Perhaps in recognition of the current economic environment, 35 percent of CEOs plan to devote increased time to customer relations through 2009, with half budgeting more for customer-relationship management.

More than one-third of CEOs suggest that it is easier to attract workers today than it was three years ago, although one-quarter find it more difficult. Eighty percent indicate that good management is key to retaining employees. Down the list are internal training programs (63 percent) and cash bonuses and stock incentives (both 51 percent).

Two-thirds of CEOs at midsize companies ($1 billion to $3 billion market cap) say stock incentives help retain employees, compared with 47 percent from companies with market caps of less than $1 billion and 37 percent from companies with market caps of $3 billion or greater. Larger companies were more likely to point to social-responsibility initiatives (39 percent versus 22 percent of CEOs from small or midsize companies) and diversity initiatives (33 percent versus 11 percent and 19 percent, respectively).
 

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