CFO Survey Europe Report Q4 2014

CFO Survey Europe
Q4 2014

European CFO Optimism Back to Lower Level
of Q2 2014.

Hiring Millennials Brings Several Advantages
but Also Implies Several Challenges.

Board of Directors: Experience & Skillset
Matter Most, No Specific Goals for Diversity.
Photograph. Untitled by Jason Wohlford, used under CC BY / cropped and desaturated from original.
Fourth Quarter 2014
As part of the quarterly CFO Global Business Outlook survey,
TIAS conducts CFO Survey Europe in collaboration with Duke’s
Fuqua School of Business, ACCA and CFO Publishing.
Netherlands-based TIAS School for Business and Society is the
business school of Tilburg University and Eindhoven University of
Technology. At TIAS we believe that business and society are
interdependent and that today’s insights are not tomorrow’s
solutions. Our mission is to have a positive and lasting impact on
organizations, business and society by developing critical and
inquisitive managers who are able to demonstrate responsible
leadership and exceptional decision-making abilities. For more
information, visit www.tias.edu.
North Carolina, US-based Duke’s Fuqua School of Business was
founded in 1970. Fuqua’s mission is to educate business leaders
worldwide and to promote the advancement of business
management through research. For more information, visit
www.fuqua.duke.edu.
UK-based
ACCA
(the Association
of
Chartered
Certified
Accountants) is the global body for professional accountants. It
aims to offer business-relevant, first-choice qualifications to people
of application, ability and ambition around the world who seek a
rewarding career in accountancy, finance and management. ACCA
supports its 162,000 members providing services through a
network of 91 offices and centers. For more information, visit
www.accaglobal.com.
UK-based CFO Publishing LLC, a portfolio company of Seguin
Partners, is a business-to-business media brand focused on the
information needs of senior finance executives. The business
consists of CFO magazine, CFO.com, CFO Research, and CFO
Conferences. CFO has long-standing relationships with more than a
half-million financial executives. For more information, visit
www.cfo.com.
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Contents
Introduction
4
CFO optimism & sentiment
5
Intermezzo: CFO Interview
8
Finance & capital
10
Employment
12
Key results CFO Survey – Europe, US, Latin America,
Africa and Asia
18
CFO Survey Europe team
19
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Introduction
After a
European CFOs’ average
optimism level drops to
lower end of 2014
strong rise in the third quarter, the positive economic
sentiment among European CFOs was no longer sustained in this
fourth quarter of 2014. The average level of optimism dropped from 61
to 53 (on a scale of 1-100) and is back at this year’s lower end.
Sentiment among financial directors in the US however, demonstrates
another uptick for the fourth quarter in a row and ends this year at
almost 64. Still, it remains to be seen if and when optimism in the US
is going to be sufficient to give the global economy an extra boost
during 2015.
Optimism in Asia remains strongest among all regions, with almost half
of the financial directors more positive about the economic prospects
for the next twelve months, and an optimism level averaging at 65.2.
Composition of a firm’s
board of directors is
determined on basis of
experience and skillset
of its members…
…and much less on
board diversity aspects
This fourth quarter survey also shows that the most decisive factors in
selecting members for the board of directors include experience,
competencies and skills. In this regard, companies are focusing much
less on attaining or realizing board diversity.
Typically, companies in Europe do not seem to make any distinction
between men or women when selecting their next board member. At
the same time however, four out of ten companies also signal a lack of
female candidates who are endowed with suitable and appropriate
experience. This may either be in relation to the sector that the
company is active in, her personal network, or overall experience at
board level.
Figure 1. Optimism index for CFOs in Asia, Europe, US, Latin America and China
100%
75%
50%
25%
0%
-25%
-50%
-75%
-100%
2002 2003 2004 2005 2006 2007 2008 2009 2010
Asia
Europe
United States
2011
2012
2013
Latin America
2014
China
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CFO optimism & sentiment
For the third consecutive quarter,
Q4 continues the
downward trend in
number of optimists…
the number of optimists has
decreased. In Q4 of 2014, around one third (down from 42% in Q3) of
the European financial directors says to have a more favorable outlook
on their own economy for the next twelve months (figure 2). During
this fourth quarter we also see a rise in the number of pessimists. 28%
of the European CFO’s maintain a negative sentiment towards the
economic prospects of their respective country (a doubling compared
to the beginning of 2014).
Figure 2. European CFO sentiment regarding economy of own country
Less optimistic
28%
No change
40%
More optimistic
…pushing the average
level of optimism back to
the lower end of 2014
32%
The downward trend in number of optimists is coupled with a
deterioration (figure 3) in the average level of optimism (measured on
a scale of 0 to 100). In Q4, the country optimism level has declined to
53.5, comparable to the low level of Q2 in 2014.




On the African continent the economic sentiment among financial
directors shows a mixed picture. Whereas the number of optimists
has declined to 22% (down from 30% in previous quarter), the
average level of optimists has in fact improved to almost 53 on a
scale of 100.
After an extended period of decline in optimism among Latin
American CFOs, this fourth quarter shows an improvement in both
the level of optimism and the number of optimists. The average
level of optimism improved to 54 (up from 50 in Q3) while the
number of CFO’s with a positive economic outlook inched to 22%
during Q4.
For the fourth consecutive quarter, the optimism level in the US
demonstrates another uptick (to 63.7 on a scale of 100), continuing
the positive trend that commenced at the start of 2014. Half of the
US financial executives (up from 43% during Q3) are now more
positive about the economic prospects.
At a level of 65.2 on a scale of 100, average optimism among Asian
CFOs remains strong during Q4. However, the number of financial
directors with a positive economic outlook has slightly declined to
just below 50%, down from 53% during Q3.
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For the fourth quarter in a row, financial executives in China
demonstrate a deteriorating economic sentiment. During Q4, the
average optimism has dropped to 61.4 (down from 63.2 in Q3 and
66.8 in Q1). Despite the relatively strong sentiment, we see only
20% of the CFOs being more optimistic while the number of
pessimists has increased to no less than 60%.

Figure 3. Optimism level about own country’s economy
Africa
Latin America
US
European economic
sentiment trails
optimism in rest of world
Europe
China
Asia
0
10
20
30
40
50
60
70
index
Last quarter
This quarter
Top concerns for European CFOs remain unchanged during this fourth
quarter; general economic uncertainty, concerns about government
policies, attracting and retaining qualified employees (table 1).
Table 1. Top concerns on the agenda of European CFOs
Top 10 major concerns affecting the corporate agenda
European optimism
about financial outlook
of own company has
improved
1.
Economic Uncertainty
2.
Government policy
3.
Attracting and retaining qualified employees
4.
Weak demand for your product/services
5.
Regulatory requirements
6.
Geopolitical/Health Crises
7.
Employee morale
8.
Currency risk
9.
Data security
10.
Deflation
During Q3 2014 we observed a substantial decline in the number of
European financial executives who had a more optimistic view on the
financial prospects of their own company. This fourth quarter however,
demonstrates a rebound in number of optimists to 43%, up from 37%
during Q3 (figure 5). The average company optimism level remains
strong at 61.5 on a scale of 100.
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Fourth Quarter 2014
Figure 4. European CFO sentiment regarding financial prospects of own company
Less optimistic
25%
No change
32%
More optimistic
CFOs see opportunities
to improve operational
efficiency and
effectiveness…
43%
Notwithstanding the positive sentiment regarding the financial
prospects of the company, European CFOs signal room for additional
operational improvements. To attain more efficiency and effectiveness
in the organization, several practices are considered. Figure 5 shows
that companies primarily choose to focus on internal measures such as
standardization and process simplification, and process automation and
the introduction of new technologies. Recruitment of new talents is
also considered to contribute greatly to efficiency and effectiveness.
Much less effort and resources are allocated to external initiatives that
may enhance company performance. Less than 15% of the European
CFOs considers the use of shared services centers or business process
outsourcing.
Figures 5a and 5b. Which of the following methods do you plan to use to improve your
company's performance (efficiency and effectiveness)? [check all that apply]
54%
…by focusing primarily
on process
standardization and
automation…
5a. Internal to the company
35%
26%
25%
21%
14%
Standardisation
Process
& simplification automation &
of processes
new
technologies
Recruitment of
key new talent
Enterprise
Six Sigma - Lean
BPaaS Resource
Converting to
Planning (ERP)
the CLOUD
5b. External to the company
14%
12%
…and to a lesser extent
by making use of Shared
Service Centers or
Business Process
Outsourcing
5%
3%
1%
Shared Services
Centers (SSC)
Business Process
Outsourcing (BPO)
Hybrid model
(BPO+SSC)
Offshore SSC or
Offshore BPO
Nearshore SSC or
Nearshore BPO
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Intermezzo: CFO Interview
Mr. Michael Samonas
(MSc, PhD, MBA and FCCA)
COMPANY: SIDMA GROUP
ROLE: CHIEF FINANCIAL
Michael Samonas is CFO of the SIDMA Group, part of the SIDENOR
Holdings S.A., with two companies in Greece, one in Bulgaria and
one in Romania. SIDMA Group employs 250 people in total, with 180
employees in Greece. Michael Samonas (MSc, PhD, MBA and FCCA)
has been its CFO since 2004.
OFFICER
How have your responsibilities changed since the start of the Greek
Recession?
Key Facts:
There has been a shift away from the typical CFO responsibilities, to
include less pleasant duties such as extensive credit analysis of clients
and finding ways to maintain our liquidity. In the last three years, we
have had to become very conservative about credit issues. Banks do
not lend money anymore, not to businesses, not to consumers. And
we have to explain to our clients that we are not banks, we have our
own problems. That is a difficult thing to do. Credit terms have gone
from 140 days to 95 days, in order to decrease our working capital
needs. In the same time, we tried to get more credit from suppliers.
That is, we try to free some cash and improve liquidity from internal
resources. But I believe that, after six years of recession, we have hit
the bottom and things will get better from now on. Both IMF and the
Greek government forecast a 2.9% increase in GDP for 2015. We will
see what comes of it.
PRIVATE COMPANY
GREECE
INDUSTRY: STEEL PRODUCTS
TURNOVER: ~EUR 75 MLN
EMPLOYEES: 250
What personal qualities have you developed to deal with the shift?
First, to be patient. History has shown that recession on average last
for six years. Second, to understand strategy and to be able to
communicate it to the top management of the company. In difficult
times with scarce liquidity, a business cannot grow since this would
require further funds. We have to focus on the best part of our client
base in order to increase profitability,, reducing at the same time
the credit terms. The third is to stay calm. When it rains, you need to
step back, let it rain and look at the big picture. Take a helicopter
view. Then prioritize. Survival first, growth second.
This CFO Survey focuses on Millennials. Does SIDMA employ many young
people?
Yes, we do. In 2014, Greece had an unemployment rate of 25 percent,
with numbers as high as 50 and 60 percent amongst young people.
Troika enforced salary cuts and this - in conjunction with the high
unemployment rate - makes new hires cheap. Our older people take
their pension when they fit the proper criteria, so they leave room for
new hires. The new people we hire are young and very talented: i.e.
25 years old, with an MBA and 2 years working experience. The main
thing about Millennials is that they love technology. We cherish that.
We cannot give them flexible work hours, because we are in an
industrial area where people work from 08:00-16:00 hours. We are
not a technology company, so we cannot let them work from home.
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The way I motivate people is by giving them new things to learn. Such
as training courses on IFRS (International Financial Reporting
Standards) and the latest tax laws. These change every two or three
months in Greece, so it is quite necessary to keep up to date.
What is your biggest achievement as CFO?
Setting up a very good credit control department. When I arrived in
2004, there were outstanding payments of more than a million euro. I
set up a very formal process of client analysis and credit check
procedures. Our insurers say we have one of the best credit control
departments in the country and that is very good to hear. I have
personally educated sales people to think the same way we do at
credit control. Do not just sell products, but make sure you can collect
the money, also. It is difficult for commercial people to keep that in
mind, but they are learning. Fortunately, our commercial director
supports this strategy.
There is one other achievement. I am responsible for finding liquidity
sources and have had to search for new ways of finding money from
the banks. Working with HSBC Bank, we have invented a new funding
tool: a bond loan covered by post-dated checks. The post-dated check
is a Greek invention and we have found a new way to do use it as
collateral to a bond loan.
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Finance & capital
Technology spending and capital investments are topping the list in
overall business spending as growth for both items is projected at 4.2
and 6.4% respectively (figure 8). However, as more than half of the
European CFOs indicate to boost business spending across the board
during the next twelve months, actual spending on R&D, and
marketing and advertising still remains limited at very moderate
growth rates that are well below the levels of one year ago.
Figure 6. CFOs' expected growth in business spending for next 12 months
6,4%
4,2%
For the next twelve
months capital
investments and
technology spending are
expected to pick up
2,6%
1,5%
Capital investments
1 yr ago




European CFOs
anticipate improvements
in product prices,
company revenues and
earnings…
Technology
Research &
Development
previous quarter
Marketing &
Advertising
Q4 2014
58% of the financial executives expect to increase capital
investments. The average expected growth rate for the next twelve
months is 4.2%, up from 3.6% in the previous quarter (3.5%).
Almost 60% of the CFOs anticipate increased spending on
technology for the next twelve months at an average growth rate
of 6.4%, up from 3.6% during Q3 and well above the level of one
year ago.
A little over half of the CFOs intend to expand their current R&D
spending at an average growth rate of 1.5%, well below the levels
of previous quarters during 2014.
58% of the European financial executives expect to increase
spending on marketing and advertising. The average growth rate is
projected at 2.6%, slightly up from 1.9% in the previous quarter
and well below the level of 6.3% that was measured one year ago.
During the next twelve months we can also expect to see further
strengthening of product price levels, earnings and revenues (figure 9).
More than 60% of European CFOs anticipate a price increases. The
average expected change in price levels however remains marginal at
1.0%. Two thirds of the European companies are expected to witness
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increases in earnings. For public firms, the projected growth rate in
earnings is 8.3%, up from 6.4% during the previous quarter. 70% of
European CFOs foresees an increase in revenues in the next twelve
months. For public firms, the expected growth rate is 6.1%, up from
5.5% during Q3 2014.
Figure 7. Anticipated balance sheet and P&L developments (public firms)
8,3%
6,1%
5,3%
1,6%
-0,1%
Dividends*
Share Repurchases*
Cash on balance
sheet*
previous quarter
Revenues
Earnings growth*
Q4 2014
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Employment
Full-time and temporary employment outlook remains weak for the
While growth in full-time
and temporary
employment is expected
to remain flat…
next twelve months. With growth rates close to zero, companies signal
their hesitance to recruit new employees during the next twelve
months. For 2015, CFOs expect to make substantial use of
outsourcing; at an average growth rate of 9.2%, employment
outsourcing is expected to reach a new record high during the next
twelve months (figure 10).
Figure 8. European CFOs expected growth for next 12 months in employee mix.
9,2%
0,3%
…outsourcing of
employment is expected
to reach new record high
-0,4%
Employment – full-time
1 yr ago
Employment – temporary
6 months ago
Outsourced Employment
previous quarter
Q4 2014
Compared to the emerging market regions, companies in Europe
employ a relatively low ratio of employees under the age of 35 (i.e.
“Millennials”). Around 66% of the companies employ up to 30% of
millennials (measured as a percentage of their entire workforce). In
approximately 73% of the US companies, millennials make up 30% or
less of the workforce.
Figure 9. Approx. what % of your firm’s employees are “Millennials” (under the age of 35)?
Compared to Europe and
the US, companies in
emerging market regions
employ a relatively
younger workforce…
< 10%
10-20%
20-30%
30-40%
40-50%
> 50%
EUROPE
16%
28%
22%
15%
8%
10%
US
15%
26%
33%
12%
8%
7%
LATIN AMERICA
9%
6%
19%
22%
17%
27%
AFRICA
4%
17%
28%
21%
11%
19%
ASIA
5%
7%
17%
25%
19%
27%
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The average workforce of Asian and Latin American companies is much
younger. In 72% of Asian companies and in 66% of Latin American
firms, the workforce is comprised of at least 30% Millennials.
Moreover, in no less than 27% of both Asian and Latin American
companies, millennials make up more than 50% of the total workforce.
Figure 10. What are the primary advantages of
employing Millennials under age 35?
…possibly allowing
emerging market
companies to better
leverage the benefits of
employing millennials…
Employing millennials can
bring several advantages
to the company. These
may arise from the traits
and competencies that
this group of employees
bring along, or can be
brought about in terms of
cost
savings
across
various dimensions (e.g.
salary, benefits, health
care costs, etc.).
Traits & competencies
ASIA
80%
60%
40%
EUROPE
AFRICA
20%
0%
LATIN
AMERICA
US
… and create
competitive advantages
brought about by
technologically savvy,
creative and innovative
workers…
By far, the most valued
competency
that
millennials
bring
with
them is their technological
savvy. Especially in the
US
and
Asia,
where
around seven out of ten
companies perceive this
to be the main advantage
of
employing
younger
workers.
Technologically savvy
More creative and innovative employees than older workers
More energetic
More efficient workers
Cost savings
ASIA
50%
40%
30%
Compared
to
other
regions, Latin American
companies
also
view
creativity
and
an
innovative mindset as a
typical
advantage
of
younger workers.
20%
EUROPE
0%
LATIN
AMERICA
US
…and a less expensive
workforce altogether
AFRICA
10%
With the exception of
Latin America, almost four
out of ten companies
across
the
different
regions
consider
cost
savings
from
lower
salaries as a primary
advantage
that
arises
from employing younger
workers.
Cost savings in terms of salary
Cost savings in terms of health care costs
Cost savings in terms of company retirement obligations
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Figure 11. What are the primary challenges related to
employing Millennials (under age 35)?
The new generation of
employees are less loyal
to the company they
work for…
Employing
younger
generations of workers
can also bring several
challenges
to
the
company.
These
challenges can be viewed
from the perspective of
the individual (driven by a
person’s
intrinsic
motivation and behavior),
or from the stance of the
company
(based
on
company-wide impact).
Intrinsic motivation & behavior
ASIA
80%
60%
40%
EUROPE
AFRICA
20%
0%
LATIN
AMERICA
US
The foremost challenge
identified by companies
across all regions is the
fact that younger workers
are less loyal to the
company. In Asia and
Africa this challenge is
most
pervasive;
more
than two thirds of the
companies
in
these
regions believe that this is
the primary challenge that
their company faces when
employing millennials.
Less loyal to company
More interested in own professional development than in the company
Attitude of entitlement
Me-first attitude
Impact on company
ASIA
50%
40%
30%
In other regions such as
Latin America and Europe,
a much smaller share of
companies views this as a
significant problem; just
four out of ten CFOs claim
this to be a challenge for
their company.
…demanding more
intense management…
…and possibly requiring
companies to align
company culture and
operations with
millennials
20%
EUROPE
AFRICA
10%
0%
LATIN
AMERICA
US
By extension, according to
approximately one third of
the companies in various
regions,
employing
a
relatively large share of
younger workers requires
a higher degree of intense
management. More than
40% of the CFOs in Latin
America and Africa believe
this to be a primary
challenge.
Demand change in culture of company
Demand change in operations of company
Require more intense management
Open company up to more online risk
Less efficient workers
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In an effort to retain or recruit workers under the age of 35, companies
have several alternatives at their disposal: companies can adjust
working hours and/or enhance the attractiveness of the work
environment.
In Europe and the US,
companies are much
less inclined to put in
extra effort to recruit
millennials
Despite the various challenges and advantages that younger workers
can potentially bring to a company, quite a large share of companies
indicate that they have not made any special efforts to attract
millennials: in Europe 49%, the US 59%, Latin America 28%, Africa
57%, and in Asia 36%.
Companies that have made concrete changes to attract or retain
millennials have primarily done so by redefining work hours to be more
flexible, and have implemented new training modules and mentoring
programs (figure 12 a and b).
Figure 12. Has your company made any of the following changes in an effort to retain or
recruit workers under the age of 35?
12 a. Working hours
Companies that do make
special efforts…
… have redefined work
hours and allow
employees to work from
home…
ASIA
AFRICA
LATIN
AMERICA
US
EUROPE
Allow employees to work
from home
22%
4%
5%
17%
18%
Did away with required
work hours
2%
4%
0%
2%
2%
Reduced hours worked per
week
2%
0%
3%
2%
3%
Redefined work hours to be
more flexible
39%
17%
18%
21%
21%
ASIA
AFRICA
LATIN
AMERICA
US
EUROPE
Implemented new training
modules
37%
24%
14%
16%
18%
Implemented new
mentoring programs
34%
20%
8%
13%
18%
Added more fringe benefits
20%
6%
8%
6%
3%
Redefined company culture
26%
11%
15%
10%
15%
Implemented a social
responsibility policy for
company
21%
11%
15%
7%
10%
12 b. Work environment
… and offer training and
mentoring programs to
their employees
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Figure 10. What are the most important qualities
your board of directors is looking for in its next
director?
At board level companies
are looking for a certain
set of skills and qualities
that
their
directors
should bring to the table.
Factors most sought for
in a director include
experience in the
relevant industry…
Desired experiences
ASIA
60%
40%
There
is
widespread
consensus that the most
important trait of a
director is his or her
experience
in
the
relevant industry.
This
holds for approximately
60% of all companies,
across all regions.
EUROPE
AFRICA
20%
0%
LATIN
AMERICA
US
Experience in our industry
C-level experience are
major determinants in
the
US
and
Latin
America, whereas in Asia
and Europe a director’s
experience in running a
large organization is a
decisive factor.
Experience running a large organization
C-level experience as a manager at a top company
Desired skills & traits
ASIA
…people skills, and the
ability to think outside of
the box…
Next to a director’s
experience, several skills
and traits are considered
a must have. In Europe
and Asia, people skills
are
highly
desired
whereas companies in
other
regions
place
relatively high value to a
director’s
ability
to
exhibit “outside-of-thebox” thinking.
50%
40%
30%
AFRICA
10%
0%
LATIN
AMERICA
US
People skills (e.g., consensus builder)
Outside-the-box thinker
Specific skills (e.g., engineering, accounting)
Specific professional degree
Diversity (gender, race, etc.)
Moreover African firms
place
relatively
high
value
to
disciplinespecific
skills
(e.g.
accounting, engineering).
…and to a much lesser
extent the diversity that
one can bring to the board
20%
EUROPE
In African firms, more
than in any other region,
diversity
(based
on
gender, race, or any other
distinctive trait) plays an
important factor in the
search for a new director.
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However, an overwhelming majority of companies across all regions,
including the African continent, say that they have no specific goals or
guidelines that define the mix of men, women and minorities on their
respective board of directors (figure 13).
Figure 13. Does your firm have specific goals or guidelines for the mix of men, women, and
minorities on the board?
4%
8%
13%
18%
20%
67%
The majority of companies
does not follow any
specific guidelines or have
any goals with respect to
board diversity…
75%
85%
64%
78%
30%
16%
ASIA
…because
in
general,
most companies do not
see any challenges or
obstacles
in
adding
women to the board
7%
AFRICA
13%
4%
LATIN AMERICA
Yes
No
Don't know
US
EUROPE
When asked about any challenges faced by the company in adding
women to the board of directors, a significant share of companies claim
that they do not experience any particular obstacles: this holds for 55%
of the European companies, in the US 50%, in Latin America 37%, on
the African continent 35%, and in Asia 52% of the firms.
Those companies that do face challenges or obstacles indicate that
there are generally too few women that possess the desired industry
experience. Asian companies also point out that there are too few
women available that boast the desired board experience. In Africa,
companies indicate that there are too few women with the desired
skillsets.
Figure 14. What challenges has your company faced in adding women to the board of
directors?
ASIA
AFRICA
LATIN
AMERICA
US
EUROPE
Too few women with desired Csuite experience
11%
4%
4%
6%
8%
Too few women with desired
board experience
25%
11%
7%
7%
8%
Too few women with desired skill
set
15%
26%
4%
7%
11%
Too few women with desired
industry experience
35%
33%
13%
14%
15%
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Key results CFO Survey – Europe, US, Latin America, Africa and Asia
Key Indicator
Europe
US
Latin America
Africa
Asia
32.1%
50.3%
22.6%
22.2%
49.6%
Less optimistic
28.3%
16.4%
58.5%
61.1%
34.1%
No change
39.6%
33.3%
18.9%
16.7%
16.3%
53.5
63.7
54.1
52.7
65.2
More optimistic
42.8%
46.8%
37.1%
48.1%
47.2%
Less optimistic
25.2%
25.3%
28.3%
24.1%
34.6%
No change
32.1%
27.9%
34.6%
27.8%
18.1%
61.5
66.4
67.4
69.7
64.7
Capital spending
4.2%
5.9%
2.0%
0%
8.9%
Technology spending
6.4%
5.6%
3.8%
7.5%
6.4%
Economic sentiment
About economy of own country
More optimistic
Own country optimism level
About own company
Own company optimism level
Business spending
R&D spending
1.5%
2.5%
3.5%
3.1%
5.9%
Advertising and marketing spending
2.6%
3.8%
2.1%
2.8%
5.8%
Employment
Employment – full-time
0.3%
2.9%
1.3%
5.1%
5.0%
Employment – temporary
-0.4%
1.1%
0.7%
-3.5%
1.8%
Outsourced Employment
9.2%
3.1%
-2.1%
2.8%
2.0%
Wages and Salaries
3.3%
3.4%
5.9%
7.2%
8.1%
Health Care Costs
2.5%
7.7%
9.0%
6.0%
5.2%
Productivity
2.8%
2.7%
1.4%
2.0%
3.8%
Inflation (own-firm products)
1.0%
2.4%
2.3%
5.1%
2.7%
Balance Sheet & P&L
Revenue growth
6.1%
6.4%
9.0%
7.5%
10.6%
Earnings growth*
8.3%
9.0%
11.2%
9.1%
7.5%
Dividends*
5.3%
3.2%
7.5%
6%
4.9%
Share Repurchases*
-0.1%
-0.2%
0.0%
5.2%
-0.0%
Cash on balance sheet*
Mergers and Acquisitions
1.6%
-2.5%
-2.3%
0%
8.9%
Not asked.
Not asked.
Not asked.
Not asked.
Not asked.
Percentages indicate this quarter’s expected growth rates for the next twelve months
* Indicates public firms only
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Fourth Quarter 2014
The figures quoted above are taken from the Global CFO Survey for
About CFO Survey
Note for the press
the fourth quarter of 2014. The survey concluded December 5, 2014.
Every quarter, CFOs in Europe, the US, Latin America, Asia (and
China), and Africa are questioned about their economic expectations.
Current records go back 75 quarters. The CFO Survey is conducted
jointly by TIAS School for Business and Society (Tilburg, Netherlands),
Duke University (Durham, North Carolina), ACCA Global and CFO
Magazine.
Previous editions of the CFO Survey can be found at FinanceLab under
the CFO Survey tab. For further information, please contact Mrs. Rian
van Heur, TIAS School for Business and Society, tel.+31-(0)134668637 or e-mail [email protected]
CFO Survey Europe team
Kees Koedijk
Professor Financial Management
Dean & Director TIAS School for Business & Society
Christian Staupe
Policy Advisor Dean’s Office
Coordinator CFO Survey Europe
Rian van Heur (contactperson)
Corporate Marketing & External Relations
[email protected]
+31-(0)-13 466 8637
All
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