A CFO Rising West Survey: Payroll Cuts Are Imminent
Our poll illustrates the hard choices finance chiefs will have to make in the coming year - and provides some candid advice for Secretary Paulson.
More than half of the CFOs participating in a recent survey (56 percent) said they expect the credit crisis to force them to cut payroll in the coming year. Further, 57 percent anticipated slashing operating costs by more than 5 percent, while 50 percent said they predict a decline in company revenues.
The survey - which polled more than 100 executives who attended CFO magazine's CFO Rising West conference in Las Vegas last week - included reaction from chief financial officers, vice presidents and directors of finance, and controllers.
Managing cash flow was named one of the top finance priorities for the first half of 2009 by survey participants. Forecasting and implementing adjustments was also highlighted as another key priority.
In fact, 64 percent of the executives said they readjusted their 2009 forecasts in light of the current banking crisis. Other crisis reactions ranged from cutting expenses to reworking banking relationships. For example, 48 percent of respondents scaled back capital spending, while 40 percent strengthened their scenario-planning procedures. Further, 40 percent instituted a hiring and/or spending freeze, while 34 percent shored up credit and 21 percent changed banking relationships. Only 7 percent extended payment terms to customers.
Over the long-term, 50 percent of the executives thought the credit crunch would affect their ability to implement strategic initiatives, while 42 percent said the crisis would affect access to short-term financing.
Asked what one piece of advice they would give Treasury Secretary Henry Paulson if they got the chance, responses from finance executives ran the opinion gamut. Many called for letting the free market work, and not bailing out the banks. Others called for more banking regulation, as long as it is reasonable. "Act swiftly, face losses quickly, and put them behind us when moving forward," wrote another respondent.
Many counseled Paulson to "think long term" and avoid short-term decisions, while others wanted to see more of a focus on small businesses and homeowners. Still others wanted to see the recovery plan defined. Several respondents asked for more honesty in communicating the plan and its success, and one finance executive simply noted: "Good luck."
Additional information about the CFO Rising West conference may be found at http://www.cforisingwest.com.
About The CFO Group
CFO magazine, CFO.com, CFO Conferences, and CFO Research Services together constitute The CFO Group, an Economist Group business. With a rate base of 450,000, CFO is the leading business publication for C-level and senior financial executives, and thus provides a close-to-the-customer connection that extends across all business lines. Additionally, The CFO Group also reaches an international audience of corporate leaders with its global group of magazines, including CFO Europe, CFO Asia, CFO China, and CFO Russia produced by B2B Media under license from CFO Publishing Corp. CFO.com reaches roughly 350,000 senior finance executives each month and won the 2007 Jesse H. Neal Award from American Business Media for Best Website. For more information, visit http://www.cfo.com.
About CFO Conferences:
CFO Conferences produces educational and networking conferences and exhibitions for senior finance executives. Speakers include the CFOs of major corporations as well as thought leaders in management, strategy, and innovation. Attendees are primarily CFOs, VPs of Finance, and Controllers from large and midsize U.S. corporations. For more information, visit http://www.cfoconferences.com
Ripped from the Headlines: Insights on the Energy, Housing, and Capital Markets Added to CFO Rising West
Executives from Centex, Sempra Energy, and The Corporate Executive Board to Speak at 3rd Annual Event
Boston, September 2008 — Finance executives everywhere are struggling with turmoil in the housing, energy, and capital markets. To address these issues, CFO Conferences has announced that executives from Centex, Sempra Energy, and The Corporate Executive Board have joined the line-up at the 3rd annual CFO Rising West. The theme of the conference, which will be held at the JW Marriott Las Vegas Resort, October 14-17, 2008, is "The Way Forward: Driving Performance and Profits in a Changing World."
On Wednesday, October 15, Mark Snell, CFO of Sempra Energy will discuss how that company transformed itself from a regional utility to a global player in natural gas, and he will offer insights on the future of energy. Cathy Smith, EVP and CFO, of Centex Corp., one of the nation's largest homebuilders, will speak on Thursday, October 16 and address how the worst housing correction since The Great Depression has impacted Centex and outline how finance is responding. And on the final day, Derek van Bever, chief research officer at the Corporate Executive Board, will tackle the gyrations in the economy in a presentation based on his new book, "Stall Points: Most Companies Stop Growing--Yours Doesn't Have To" (Yale University Press, April 2008).
The new speakers will join an impressive line-up that includes two keynote addresses. Bill Emmott, former editor of The Economist, will offer his perspective in a talk on October 15 titled "Morning in America, Again-An Outsider's View on the Economy, the Election, and America's Place in the World." Then, on October 16, David M. Walker, president and CEO of The Peter G. Peterson Foundation and former Comptroller General of the United States, will address the problem of the mounting federal debt in light of demographic and economic trends.
In addition to the keynotes, CFO Rising will offer case studies presented by executives from major corporations, including Cisco Systems Inc, The Pepsi Bottling Group Inc., Applebee's International, and AT&T; Mobility. There will also be panels on issues of importance to CFOs, including a discussion of skill-building with a panel of executive recruiters; best practices in finance training, featuring panelists from GE, Coca-Cola, and Johnson & Johnson; and a look at IFRS, the international accounting standards.
Additional information about the CFO Rising West conference may be found at http://www.cforisingwest.com.
About The CFO Group
CFO magazine, CFO.com, CFO Conferences, and CFO Research Services together constitute The CFO Group, an Economist Group business. With a rate base of 450,000, CFO is the leading business publication for C-level and senior financial executives, and thus provides a close-to-the-customer connection that extends across all business lines. Additionally, The CFO Group also reaches an international audience of corporate leaders with its global group of magazines, including CFO Europe, CFO Asia, CFO China, and CFO Russia produced by B2B Media under license from CFO Publishing Corp. CFO.com reaches roughly 350,000 senior finance executives each month and won the 2007 Jesse H. Neal Award from American Business Media for Best Website. For more information, visit http://www.cfo.com
About CFO Conferences:
CFO Conferences produces educational and networking conferences and exhibitions for senior finance executives. Speakers include the CFOs of major corporations as well as thought leaders in management, strategy, and innovation. Attendees are primarily CFOs, VPs of Finance, and Controllers from large and midsize U.S. corporations. For more information, visit http://www.cfoconferences.com
