Survey: CEOs Positive on Banking Relationships
With the failures of First Republic Bank, Silicon Valley Bank, and Signature Bank in recent months, many are wondering about the stability of the country’s financial system.
That includes CEOs.
In the latest Marcum LLP-Hofstra University survey, nearly two-thirds (62%) of mid-market CEOs said they were concerned about the stability of the financial system.
However, only 21% said they were “very concerned” and 88% plan to maintain their current banking relationships.
Researches said the percentages were virtually the same whether companies used a large national or smaller regional bank.
Sixty-one percent said size and stability was the main reason they chose their bank, followed by favorable terms (51%), connection to the company’s business sector (42%), and connection to the local community (38%).
“CEOs have had to juggle multiple challenges that emerge and evolve faster than ever before,” said Janet Lenaghan, dean of Hofstra University’s Zarb School of Business.
“In a sense, they’ve been in crisis management mode since the COVID-19 pandemic hit, so they know how to live with unpredictable conditions, when to be nimble and when to stay the course.”
The survey, conducted in April, polled 255 mid-market CEOs from companies with revenues ranging from $5 million to more than $1 billion.
Overall, concerns with the financial system have not affected chief executives’ view of the current business environment.
Eighty-three percent had a positive outlook, a slight decrease from 85% in the last survey in February.
“Though CEO optimism persists across industries, their strategic planning is being shaped by economic uncertainty, talent scarcity, and escalating costs,” said Marcum chair and CEO Jeffrey Weiner.
Economic concerns (58%), availability of talent (46%), and rising material and operational costs (41%) were the top influences on business planning.
Remote Work Policies
The survey also asked CEOs about their companies’ remote work policies.
Forty-five percent said they allowed employees to work remotely for at least part of the week and plan to continue the practice.
Thirteen percent said they’d discontinued remote work and 29% said they were considering it.
“We see them considering their employees’ evolving preferences regarding remote work and balancing these with the organization’s good,” said Dr. Andrew Forman, Hofstra associate professor of international business and marketing.
Some of the factors that CEOs cited for reconsidering their remote work policies include cost, productivity, and improved collaboration and performance.
Others cited the diminishing threat from COVID-19, and a desire to get back to normal.
The Marcum-Hofstra survey is conducted periodically by Hofstra MBA students as a way to gauge mid-market CEOs’ outlook and priorities for the next 12 months.
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