CEOs of Small and Medium Enterprises Are More Optimistic about Growth Prospects Than Heads of Larger Companies, According to the Annual NYSE Euronext CEO Report

• CEOs of SMEs with less than $500 million in revenue are more optimistic about current growth prospects than those of larger companies
• CEOs expect to increase their budgets in all aspects of their businesses
• Investors are showing renewed interest in companies

NEW YORK--(EON: Enhanced Online News)--Chief executives of companies with less than $500 million in revenue listed on NYSE Euronext exchanges are the most bullish about their growth prospects through 2011, according to the newly released NYSE Euronext CEO Report. Themed “Back to Business,” the study finds that four in 10 (38%) CEOs of small and medium-sized enterprises (SMEs) expect significant growth within their companies. Globally, eight in 10 CEOs say they expect either a significant or modest improvement in the growth of their businesses through 2011, a positive indicator of a turning point in the health of the global economy.

“Innovation and entrepreneurship have always been the key ingredients for the success of emerging business”

“NYSE Euronext CEO Report represents the shared perspectives of corporate leaders on topics ranging from globalization and governance to strategy and human resources as well as economic crisis and recovery," said Duncan Niederauer, CEO of NYSE Euronext. “While the participating CEOs express the fact that there remains a great deal of work yet to be done, their renewed optimism and confidence in the growth of their businesses is an indication that the economy is headed in the right direction.”

“Innovation and entrepreneurship have always been the key ingredients for the success of emerging business,” added Jeff Resnick, Global Managing Director, Opinion Research Corporation, which conducted the study on behalf of NYSE Euronext. “The optimism expressed by these CEOs continues this tradition. The confidence of these business leaders is a key ingredient to the economic recovery we are beginning to see.”

In addition outside the U.S., four in 10 CEOs say they expect a significant improvement in the growth of their business through 2011 – almost twice that of U.S. CEOs (see interactive chart*).

These findings, and a range of others on topics ranging from global trade and governance to investor and employee relations, were released today in nyse magazine and are now available at www.nysemagazine.com. Visit www.nysemagazine.com/ceo-report for the full report, including interactive charts. The table of contents for nyse magazine can also be found here: http://www.nyse.com/attachment/nyse_magazine_email_ceoreport.htm

To help launch this year’s study, NYSE Euronext today is hosting a CEO roundtable. Entitled “Ready to Grow,” this event will bring together a handful of CEOs from multiple industries for a peer-to-peer discussion about their strategies for growth in the current economic and financial climate. The roundtable will be recorded, transcribed and edited for publication in the 4Q issue in nyse magazine and on http://www.nysemagazine.com.

"While economic conditions continue to be challenging, we have significantly reduced the cost of doing business thereby providing the resources necessary to drive innovation, expand access to markets and focus on sales. We believe this will lead to profitable growth in the foreseeable future," stated John K. Morgan, Chairman, President and CEO of Zep Inc. (NYSE:ZEP).

Spending Again

After cutting back in all but a handful of budgetary areas in 2009, CEOs this year anticipate budget increases in nearly all categories for the year ahead, another indication that they are planning for growth. Spending in areas such as technology and environmental and regulatory compliance are expected to increase 10 percent or more (see interactive chart*).

Customers, Investors, Employees

When asked about the success of prospecting and retaining customers and investors in the current economic environment, only 25% of CEOs said it is easier to attract customers, while 36% believed it would be easier to attract investors compared to last year (see interactive chart*). However, reflecting some of the difficulties in Europe, CEOs there versus those in other markets believed attracting customers and investors in their region would be difficult.

Further proof of business growth is the underlying finding that CEOs globally say it is easier to retain employees. Three in four (76%) U.S. CEOs and three in five (60%) European CEOs find it easier to attract and retain employees this year than in prior years.

This year’s NYSE Euronext CEO Report is based on interviews conducted during March 2010 with 325 CEOs of companies listed on NYSE Euronext exchanges covering a wide range of industries and geographies. With 44% of respondents based outside the United States, this year’s survey is designed to capture insights from CEOs around the world on how the past economic challenges may have impacted current and future business plans.

Other key findings of the report are provided below.

Employment Recovery

Nearly half of the CEOs surveyed expect to be adding to their workforce through 2011, with those based outside of the U.S. and Europe being the most likely to hire more people. More than six out of 10 CEOs in Asia and Latin America said they plan to expand their workforce, while only four in 10 European and U.S. CEOs plan an expansion. http://www.nyse.com/press/1276165872633.html

Global Economic Recovery

The CEOs who rated the global economic conditions as poor dropped by 47 percent from last year, while those who viewed conditions as “good or excellent” increased by 3 percent. The ratings remained unchanged since March. CEOs, however, were downbeat about the strength of the economic recovery in their own countries. Half of the CEOs rated the state of their own economic recoveries as weak or worse. Their pessimism, however, has abated since March, when nearly six in 10 CEOs viewed their recoveries as weak. http://www.nyse.com/press/1277287347988.html

Succession Planning, Corporate Reputation and Investor Confidence

The study finds that approximately two-thirds of U.S. companies have formal succession plans for the CEO role, compared to 14% of European companies. While three of four CEOs feel they do enough to protect their companies’ reputations, those surveyed believe the most important characteristics that would have a positive impact on their company’s reputation are honesty, integrity, ethics, transparency and leadership by example. http://www.nyse.com/press/1278497122821.html

*To view corresponding charts and additional analysis, including a brief video segment with Opinion Research Corporation’s Global Managing Director Jeffrey Resnick, visit: http://www.nysemagazine.com/ceosurvey

About NYSE Euronext

NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://www.nyx.com.

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