The Chief Executive CEO Confidence Index dropped 10 full points this month, settling in at 159.7 from a high of 177.4 two months ago. This drop was the second biggest in the history of the Index, only outdone by the 11.2 drop in February, 2003, right before the start of the Iraqi conflict.
In the wake of a sluggish stock market and rising energy prices, executive confidence dropped for the second month in a row. Back in July, the Index dropped 7.7 points. However, executives are still optimistic about business fundamentals like employment, capital spending, and overall business conditions. 89.5% of CEO’s said current business conditions were normal or good, compared to only 33.4% optimism back in the spring of 2003. Similarly, 80.2% of CEO’s felt that employment conditions were normal or good, compared to 36.8% back in spring, 2003, too.
In light of the blossoming political season, this month Chief Executive Magazine conducted additional polling to better understand the issue of job creation. From the poll, CEO’s do not support the tenet that political officeholders fuel job growth. The three most agreed upon reasons affecting job growth, according to 324 CEO’s polled this past month, are expected sales growth (22%), expected profitability (16.8%), and outlook for the economy in general (13.7%). These market fundamentals completely dwarf the bottom two reasons CEO’s listed as affecting job growth. Those reasons are uncertainty about the presidential election (4.3%) and outsourcing (4.6%).
“CEO’s clearly believe that company fundamentals determine job growth, not which candidate wins the November election or how many jobs are outsourced,” says Edward M. Kopko, chairman and CEO of the Chief Executive Group. “Of ten possible reasons, market-related fundamentals were the top three reasons CEO’s listed as affecting job growth, and political issues were the bottom two. The message from CEO’s couldn’t be more clear on this issue.”
The fact that CEO’s explain job growth by the workings of the market is reinforced by the fact that executive confidence in employment has been increasing over the past year. This has translated into the recently reported lows in unemployment rates.
“Although recent months have caused some uncertainty for CEO’s, resulting in the second biggest drop in the history of the CEO Confidence Index, their optimistic outlook seems to be the real headline,” says William J. Holstein, editor-in-chief of Chief Executive magazine. “Their overwhelming faith in current employment and business conditions, as well as their faith in future employment and capital spending conditions really speaks to this fact.”
The CEO Confidence Index is released on the third Tuesday of each month. For additional information regarding the confidence of public- and private-company CEOs, details about regional CEO attitudes on employment, investment and business conditions, as well as confidence differences between service and non-service industry CEOs.
Chief Executive is a controlled circulation magazine that reaches 42,000 chief executive officers and their peers. It is published 10 times a year and reaches a total readership of 143,000. Chief Executive Group facilitates “Chief Executive of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of his or her peers. Jack Welch, Bill Gates, John Chambers, Michael Dell, Sandy Weill, Hank Greenberg, and Fred Smith are just some of the leaders who have been honored throughout the award’s 17-year history. Chief Executive also organizes roundtable meetings and conferences to foster opportunities for top corporate officers to discuss key subjects and share their experiences within a community of peers.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
