CFOs forecast recession into 2010
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PrintAccording to a survey conducted by American Express, 71 percent of Chief Financial Officers (CFOs) believe their regions economy will recover by mid 2010. Mexican and Canadian CFOs are the most optimistic, with 95% and 81% respectively believing in a mid 2010 recovery.
American Express surveyed 285 CFOs from the United States, Europe, Canada, Mexico, Asia, and Australia.
Sixty-four percent of the CFOs surveyed from the United States expected a recovery in mid 2010, while that figure is 77% for Asia/Australia and 58% for Europe.
One way these executives are dealing with the recession is focusing on cost control. Some of the strategies utilized by these executives include:
- 85% are tightening controls over employee spending.
- 82% are placing greater emphasis on measuring and monitoring company financial performance.
- 71% are improving internal financial controls.
When asked about changes in their workforce, 59% of respondents anticipate a decrease in headcount. But companies are also taking actions now to avoid layoffs. Half the executives polled reported plans to freeze salaries and bonuses, while 32% plan to reduce benefits and 29% plan to cut salaries and bonuses. Twenty-four percent plan to reduce employee work hours or give furloughs and 16% plan temporary office or plant closures.
