CEOs afraid of government intervention

Government intervention is the main concern for a fifth of chief executive officers in the next twelve months, making it the second-biggest worry after sales volumes.

The finding came from a survey by Fidelity Investments of its own research analysts, who hold regular meetings with big companies, says Fidelity.

The analysts said CEOs are more likely to worry about new regulation than about their balance sheets, product pricing or internal costs. However, sale volumes were thought to be the main concern for 27% of company CEOs.

“In response to the financial crisis and the fiscal and economic environment it created, politicians declared ‘something must be done’,” said Fidelity’s report. “In many cases, businesses are still waiting for that ‘something’ to happen and the hiatus, or the lingering threat of reform, is beginning to affect the way they operate.”

Fidelity’s analysts also identified a cautious approach among the global corporates they monitor. The majority, at 71%, are planning to reduce or keep constant their expenditure, said the analysts, and only 29% are actively recruiting.

©2011 funds europe

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