65% of senior financial executives say no raises for employees this year
40% more worried about their organization's ability to continue as a going concern
CHICAGO, April 16, 2009 - In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, 65 percent say they will cut costs by not giving out raises this year and 40 percent are more worried about their organization's ability to continue as a going concern.
In terms of pricing pressure, 76 percent are most concerned about the price of employee benefits, while 35 percent are concerned about energy costs and another 30 percent about raw material costs.
In addition, nearly a third (32%) are having difficulties accessing credit in general.
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About which type(s) of pricing pressure are you most concerned? (Check all that apply.) |
|
|
Employee benefits (e.g., health care, pensions) |
76% |
|
Energy |
35% |
|
Raw materials (e.g., food, metals) |
30% |
|
Insurance |
29% |
|
Other |
15% |
|
Where are you cutting costs? (Check all that apply.) |
|
|
Not giving raises this year |
65% |
|
Refining processes and streamlining |
60% |
|
Cutting back on recruiting/hiring |
59% |
|
Reducing business travel |
56% |
|
Reducing headcount |
53% |
|
Not giving bonuses this year |
47% |
|
Reducing 401k match |
25% |
|
Are you having difficulties accessing credit in general? |
|
|
Yes |
32% |
|
No |
68% |
|
Have you had to return to bank credit because you no longer can access alternative financing structures? |
|
|
Yes |
15% |
|
No |
85% |
|
Compared to this time last year are you more or less worried about your organization's ability to continue as a going concern? |
|
|
Much more worried |
11% |
|
More worried |
29% |
|
About the same |
46% |
|
Less worried |
11% |
|
Much less worried |
4% |
* Percentages may not total 100 due to rounding.
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About the Survey
Grant Thornton LLP conducted the biannual national survey from March 23rd through April 4th, 2009, with 530 U.S. chief financial officers and senior comptrollers participating. In its fifth year, the Grant Thornton Survey of Senior Financial Executives is the longest running survey of its kind.
About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.