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CEOs show optimism in trade, concern over taxes in survey

A new survey reveals some of the biggest concerns among U.S. CEOs are higher taxes and increased regulation in 2021. More optimistically, CEOs expressed fewer concerns about global trade as well as an eagerness for a return to the workplace.

A new survey conducted by The Conference Board reveals the biggest issues for CEOs nationwide going into 2021.

According to the survey, CEOs are more worried about higher corporate taxes and increased regulation, but less worried about global political instability and disruptions to global trade.

Compared to their global peers, business leaders report they are more eager to have staff return to the physical workplace and see that the availability of a vaccine could produce big changes.

The survey gauged CEOs and C-suite executives from around the world about their biggest business challenges in 2021. Among the top stressors worldwide, respondents primarily cited COVID-19, recruiting and retaining top talent, recession risk, vaccine availability, and accelerating digital transformation.

Called the C-Suite Challenge™ 2021, the survey was conducted between Nov. 7, 2020 and Dec. 10, 2020. Over 900 CEOs and more than 600 C-suite executives weighed in from primarily three regions: Europe, Asia, and North America.

 

External Challenges in 2021: Highlights 

U.S. CEOs think vaccine distribution will have an outsized impact on their businesses.

  • S. CEOs: They see vaccine availability as a game changer, ranking it 2nd (the highest among CEOs globally).
  • CEOs Globally: Among CEOs worldwide, it ranks 3rd.
  • Chinese CEOs: They rank it much lower, at 9th.

U.S. CEOs are more worried about regulation & taxes, less worried about trade & global turmoil.

  • More concern about corporate tax rates: In 2020, it was U.S. CEOs’ 14th top worry; in 2021, it rose to 5th.
  • More concern about regulation: In 2020, it was their 9th top worry; in 2021, it rose to 4th.
  • Less concern about trade disruptions: In 2020, it was their 4th top worry; in 2021, it dropped to 7th.
  • Less concern about global political instability: In 2020, it was their 4th top worry; in 2021, it dropped to 10th.

Recession fears: Chinese CEOs are more worried than U.S. CEOs about another downturn.

  • S. CEOs: They rank recession risk as their 3rd top worry for 2021.
  • Chinese CEOs: They rank recession risk 1st – their top worry.
  • CEOs Globally: Among CEOs worldwide, it ranks 2nd.

 

Internal Challenges in 2021: Highlights 

Turbocharging innovation: COVID-19 has accelerated the need for creativity.

  • Accelerate pace of digital transformation: Both U.S. CEOs and CEOs globally rank it 1st.
  • Improve innovation: Both U.S. CEOs and CEOs globally rank it 2nd.

As recession fears linger, companies stay defensive by prioritizing cash flow & controlling costs.

  • Lower costs: Globally, CEOs rank the need to control costs as 4th; U.S. CEOs rank it 3rd.
  • Improve cash flow: Globally, CEOs rank it 6th; U.S. CEOs rank it 7th.