Survey: Majority of Fortune 1000 Executives Support Financial Reform

A new survey from PR and investor relations agency Makovsky + Co reveals that a majority of Fortune 1000 executives support financial reform. In fact, only 28% of senior executives, on average, believe proposed financial reform legislation will have a negative impact on the U.S. economy.

The survey, commissioned by Harris Interactive, also found the following:

72% support regulating credit rating agencies

69% agree with proposals to close regulatory loopholes for derivatives and other complex investment packages

68% support the creation of a consumer protection agency

66% back the formation of a new regulatory agency to assess risk at financial institutions

66% agree with strengthening bank supervision

“Given the backdrop, and the fact that the survey also shows that 64% of executives believe the U.S. is on the wrong track, the financial crisis and slow economic recovery may still be at the root of executive concerns, thereby correlating with their support for financial reforms as a remedy,” said Scott Tangney, Executive Vice President and head of the financial and professional services practice at Makovsky + Company.

Makovsky counts Citibank-Citicorp, JPMorgan Chase and Merrill Lynch as clients. Full release after the jump.


CORPORATE AMERICA SUPPORTS MOST FINANCIAL REGULATORY REFORMS, MAKOVSKY STUDY SHOWS

Only an Average of 28% of Fortune 1000 Executives Surveyed by Harris Interactive Believe Reforms Will Have a Negative Effect on U.S. Economy; Could Affect Mid-Term Vote

New York, NY (May 6, 2010) – As Congress continues to debate the most sweeping financial regulatory overhaul since the Great Depression, leaders at Fortune 1000 corporations are weighing in. According to a Makovsky + Company study released today, Corporate America favors the proposed financial reforms, and additionally, across all 8 reforms about which they were queried, only 28% of senior executives, on average, believe the proposed legislation will have a negative impact on the U.S. economy.

Commissioned by Makovsky + Co., a leading global, independent public relations, investor relations and branding firm headquartered in New York City, and conducted online by Harris Interactive in April 2010, the survey of Fortune 1000 executives found that they generally support 6 of the 8 core proposals for regulatory reform*. More specifically:

72% support regulating credit rating agencies
69% agree with proposals to close regulatory loopholes for derivatives and other complex investment packages
68% support the creation of a consumer protection agency
66% back the formation of a new regulatory agency to assess risk at financial institutions
66% agree with strengthening bank supervision
56% support the Volcker Rule

The reform that registered the greatest opposition, with 43% of executives opposing, was the right of the government and shareholders to influence senior executive compensation. The reform that had the least support, at 50%, was the Resolution Fund, a government process for shutting down large troubled firms viewed as “too big to fail.”

The latter two reforms, executives believe, would also have the greatest negative impact on the U.S. economy. With the exception of these two reforms and the Volcker Rule, slightly less than half believe the proposed reforms will have a positive effect on the economy and almost an average of 20% believe it will have no effect at all. The “executive pay” reform, corporate leaders believed, also would have the greatest negative impact on their particular corporation (40%) as well as them personally (34%).

“Given the backdrop, and the fact that the survey also shows that 64% of executives believe the U.S. is on the wrong track, the financial crisis and slow economic recovery may still be at the root of executive concerns, thereby correlating with their support for financial reforms as a remedy,” said Scott Tangney, Executive Vice President and head of the financial and professional services practice at Makovsky + Company.



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