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ResearchBriefs .....
Chief executive (CEO) confidence in growth prospects has nearly doubled in the past five years, according to PricewaterhouseCoopers’ 10th annual global CEO survey. Of the 1,100 chief executives surveyed in 50 countries, over 90% were optimistic about boosting revenue growth in the next 12 months. Business expansion is expected to be fuelled by improved market penetration, geographic expansion and mergers and acquisitions. However, 73% cited over-regulation as a potential barrier to growth – up from 64% last year. CEOs in the Asia Pacific region were most concerned, with 83% of respondents here being worried about over-regulation. Climate change was seen as a risk by 40% of CEOs overall - ranging from only 18% of North American CEOs to 58% of Asia Pacific CEOs.
An analysis of those companies that were rated for the first time in December 2002 or mid-2003 by GovernanceMetrics International has found that just five of the 68 companies it covered, that are now involved in stock options backdating allegations, received above average scores. GMI said that this suggests that poorly governed companies are more likely to be identified with future risk than those with good governance practices. The earliest ratings were analysed by GMI as this was closest to when the options grant decisions were made. The analysis is part of a GMI report covering four years of ratings and looking back at specific examples where companies have received low ratings and governance issues were subsequently exposed such as Parmalat and Krispy Kreme Doughnuts.
Less than half of UK pension funds have investment strategies and governance arrangements that are aligned, according to a survey by Watson Wyatt Investment Consulting. Around half of the pension schemes surveyed were over ambitious in their investment structures given their governance arrangements, while around 10% apparently use over-simple investment structures relative to their governance budgets, Watson Wyatt said. The survey of funds representing £100bn asked trustees to outline their governance structure and budget against their investment strategy.
February, 2007 |
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