How are chief financial officers in North America feeling these days? They’re concerned, but fairly optimistic on matters such as hiring and their company’s growth prospects, according to Deloitte’s latest CFO Signals survey, for the year’s first quarter.
Gyrations within the global economy — particularly China and Europe, along with the strengthening dollar — have the 100 CFOs from North America’s largest companies concerned, yet most feel positive about their company’s prospects for growth this year. Forty eight percent expressed improving optimism while only 14 percent expressed declining optimism.
Domestic hiring expectations among the CFOs rose to 2.4 percent, up from the previous quarter’s 2.1 percent. CFOs in the energy/resources industries are the most optimistic at 4 percent, while manufacturing CFOs have the lowest optimism, at 0.5 percent. Meanwhile, optimism on offshore hiring rose to 3.1 percent from the previous quarter’s 2 percent.
Shareholder activism is a big concern, with close to three-fourths of the CFOs saying they have experienced some form of shareholder activism. About half said their companies have made at least one major business decision specifically in response to such activism. As noted in this story, some investors are specifically targeting companies’ executive-pay practices — particularly when they feel pay and severance are way out of line with performance and with the median pay received by employees.
Finally, China appears to have definitely lost its luster: Only 18 percent of the CFOs describe China’s economy as good, compared to 34 percent in the last quarter. And only two percent describe Europe’s economy as good — and just 10 percent expect it to improve in the next year.