Corporate Leaders Forecast Business Expansion and New Jobs in 2012 Despite Rising Concerns,
According to New NYSE Euronext CEO Report
New York, Nov. 16, 2011
– Cross-generational survey of public and private company CEOs and MBA students –
– Views on the global economy, job creation, innovation, social media, brand reputation –
– Economic and political stability, regulation, tax policy, protectionism, trade among top concerns –
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.”
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.
- 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;
- CEOs are highly concerned about protectionism in China, India and Brazil, while emerging-company CEOs’ concern extend to South America and the Middle East;
- U.S. and Western Europe are the most important regions strategically, followed by China;
- European CEOs are slightly less gloomy about the economy in their countries despite recent financial turmoil;
- Concerns over possible protectionism or trade restrictions in China are the highest for any region, followed by India and Brazil;
- 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;
- Emerging-company CEOs have greater worries about the political stability of India, China and Brazil, possibly reflecting the nature of their business processes;
- 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;
- 60% of CEOs say the U.S. has the most unfavorable corporate tax environment, worse across any region tested;
- 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;
- 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. CEOs of their own education systems.
- 62% of listed-company CEOs and 71% of those from emerging companies plan to add to the company’s workforce;
- The percentage of public-company CEOs who expect new hiring in 2012 increased by 17 points over last year;
- Just 8% of CEOs of public companies intend to reduce their workforce, while 28% will maintain current employment levels;
- Emerging companies are doing the most hiring in sales and marketing while pubic companies are hiring more in sales and IT;
- The large majority of MBAs believe capital markets are extremely or very important to job creation globally;
- Despite high unemployment, about 3 in 4 companies are having difficulty finding qualified talent.
- CEOs of public companies are generally satisfied with their company’s level of innovation (22% of those surveyed said they were very satisfied), and emerging-company CEOs are even more satisfied (44% very satisfied);
- MBAs are much more open to non-traditional ways of spurring innovation, including social media and crowd sourcing.
- Less than half of CEOs believe the U.S. education system does an excellent or good job providing students with required skills for the workforce of tomorrow;
- Fewer than 1 in 4 give the U.S. education system passing grades for preparing students to be financially literate;
- Two-thirds of listed CEOs and nearly half of emerging-company CEOs are investing in a private-public educational partnership or would consider doing so.
Most CEOs and MBA students agree that social media will have a profound impact on how companies do business in the future, although CEOs of emerging companies and MBAs are more convinced of this than well-established companies. Most executives supplement digital fact-finding with peer conversations and reading print publications, while emerging-company CEOs and MBAs are more likely to access business blogs, twitter streams and TV. Virtually all see social media as an effective mechanism for customer relationship management.
- Eight in 10 public company CEOs single out websites a common source of business information — 89% of emerging-company CEOs and 83% of MBAs agree;
- Just 13% of public companies and 29% of emerging companies have social media strategies in place;
- Only 31% of public companies are actively using social media, although most agree that budgets for social media are expected to increase;
- The most active users of social media are technology and information services companies, with the least active users being energy, utility, manufacturing, construction and mining companies;
- Perhaps reflecting generational and experiential biases, nearly 1 in 4 CEOs at public companies prefer to access business information in printed form compared to 1 in 10 MBAs;
- Most CEOs and MBAs think social media will have a major impact on how companies do business in the future, although CEOs of emerging companies and MBAs are more convinced of this than are CEOs at public companies.
CEOs of the Future
CEOs of public companies believe that international experience, strategic vision and external communication skills will be more important to the successful future corporate leaders. CEOs at emerging companies also place a deep understanding of technology and its application, strong customer relationship skills and strong marketing acumen in their top skill set. When asked to choose the one skill that will be the most important in the future, CEOs pick strategic vision, while the results among MBAs are much more fragmented in t heir views.
- 51% of public company CEOs and 44% of emerging-company CEOs view strategic vision as the most important success skill for future leaders;
- 66% of emerging-company CEOs and 47% of public company CEOs cite a deep understanding of technology and its application as a vital characteristic.
Reputation and Brand Management
Nearly all CEOs view reputation management as a key component of their overall enterprise risk management program. Most respondents from emerging companies, and more than a third of public company CEOs and MBAs, say trust in public businesses is declining.
- Trust in corporations, both public and private, is decreasing significantly;
- While fewer MBAs than CEOs think corporate trust is on the decline, most MBAs say CEOs are not doing enough to protect the reputation of their companies;
- Four times as many U.S. CEOs than those outside the U.S. believe corporate trust on the decline;
- Virtually all CEOs consider managing their company’s reputation as part of their overall enterprise risk management strategy;
- Over the past five years, the percentage who think CEOs protect their corporate reputations has declined from 84% to 63%, with the steepest decline occurring in the past year;
- While nearly two-thirds of CEOs at public companies think CEOs take as much action as they should to protect the reputation of their companies while more than half of emerging-company CEOs and MBAs think CEOs do not;
- CEOs aren’t overly satisfied with the returns on their brand investments, with just 26 percent of public company CEOs and 23 percent of emerging-company CEOs saying the brand’s ROI has met expectations;
- Nearly 50% of public company CEOs indicate that corporate social responsibility is a mandate.
For more reporting on this year’s survey results, get your free interactive iPad edition of NYSE magazine at the iTunes App Store beginning Nov. 14, or visit http://www.nysemagazine.com/chartsfor interactive charts and more.
Rich Adamonis: 212.656.2140, Radamonis@nyx.com
Annmarie Gioia: 212.656.5437, Agioia@nyx.com
Senior Director of Corporate Marketing
US & International 1-212-463-6312
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the Fortune 500. For more information, please visit: http://www.nyx.com.
Safe Harbour Statement
In connection with the proposed business combination transaction between NYSE Euronext and Deutsche Boerse AG, Alpha Beta Netherlands Holding N.V. (“Holding”), a newly formed holding company, filed, and the SEC declared effective on May 3, 2011, a Registration Statement on Form F-4 with the U.S. Securities and Exchange Commission (“SEC”) that includes (1) a proxy statement of NYSE Euronext that also constitutes a prospectus for Holding used in connection with NYSE Euronext special meeting of stockholders held on July 7, 2011 and (2) an offering prospectus used in connection with Holding’s offer to acquire Deutsche Boerse AG shares held by U.S. holders. Holding has also filed an offer document with the German Federal Financial Supervisory Authority (Bundesanstalt fuer Finanzdienstleistungsaufsicht) (“BaFin”), which was approved by the BaFin for publication pursuant to the German Takeover Act (Wertpapiererwerbs-und Übernahmegesetz), and was published on May 4, 2011.
Investors and security holders are urged to read the definitive proxy statement/prospectus, the offering prospectus, the offer document, as amended, and published additional accompanying information in connection with the exchange offer regarding the proposed business combination transaction because they contain important information. You may obtain a free copy of the definitive proxy statement/prospectus, the offering prospectus and other related documents filed by NYSE Euronext and Holding with the SEC on the SEC’s website at www.sec.gov. The definitive proxy statement/prospectus and other documents relating thereto may also be obtained for free by accessing NYSE Euronext’s website at www.nyse.com. The offer document, as amended, and published additional accompanying information in connection with the exchange offer are available at Holding’s website at www.global-exchange-operator.com.
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