Global CEOs and Investors Have Diverging Views on Economic Outlook, Preparing for Deglobalization in 2023, Teneo Survey Finds

Teneo’s survey of global CEOs and institutional investors, representing more than $3 trillion USD of company and portfolio value, finds diverging views on the global macroeconomic outlook but significant alignment on deglobalization as CEOs and investors plan for 2023. The survey of more than 300 public company CEOs and institutional investors conducted by the global CEO advisory firm revealed some of the steps corporate leaders are taking in the face of disruptive forces, including economic conditions, geopolitics, ESG, talent and innovation.

“The level of complexity and uncertainty facing CEOs around the world is at unprecedented levels,” said Paul Keary, CEO of Teneo. “The sheer magnitude of macro issues places a premium on companies taking steps to control their fate amid an increasingly deglobalized world. These dynamics will create opportunities for companies who are nimble and decisive.”

Ursula Burns, Chairwoman of Teneo, said: “Now, more than ever, it is essential that CEOs have a clear understanding of how investors view the overall trajectory of the global economy and what the market expects of them as a result. Conventional wisdom no longer applies. There will be clear winners and losers in the new operating environment. Those with the highest chance of success are those who adapt quickly and effectively.”

Key survey findings include:

Macroeconomic outlook:

• Leading CEOs have a gloomy outlook on the economic climate for the first half of 2023, with 73% expecting worsening conditions. Investors, on the other hand, are generally optimistic, with 76% expecting conditions to improve.
• CEOs from the Americas are less bearish on the economic outlook than their counterparts in the rest of the world.

Deglobalization:

• 86% of CEOs and investors agree that deglobalization is a reality for the global economy.
• Almost half believe that deglobalization is already underway and that it will be a significant event.

Innovation:

• Investors want CEOs to embrace investment in a wide range of disruptive technologies.
• CEOs are taking a more conservative approach, particularly when it comes to cryptocurrencies and the metaverse, where the vast majority of CEOs are staying on the sidelines.

ESG:

• Even in the face of a looming recession, 15% of CEOs are prioritizing investment in ESG over business performance, and more than 60% of CEOs and investors (especially in Asia and Europe) are working to balance company performance and ESG commitments.
• Nearly one in five large-company CEOs believe they are not well prepared to respond to the next controversial social issue that emerges.

People:

• Only 28% of CEOs indicate that their current executive teams represent the perspectives of future generations.
• CEOs and investors have vastly different views on the skills and talents required of next-generation CEOs.

Disruption:

• Investors want companies to be more aggressive in managing risk exposure, specifically around supply chain, societal issues and capital market disruption.
• CEOs cite external stakeholder pressure and access to actionable information as the top two challenges when leading through disruption.

Teneo’s Vision 2023 CEO and Investor Outlook Survey was conducted by the firm’s in-house data, insights and analytics team. The survey includes the views of more than 300 global CEOs and institutional investors representing approximately $3 trillion USD of company and portfolio value. CEOs represent a global distribution of publicly traded companies with a minimum annual revenue of $1 billion USD or greater. Investors include a global sampling of professional investors in investment banking, institutional investing, venture investing, asset management, private equity and hedge funds. Research was conducted between November 9 and December 6, 2022.

For more information and to download full survey results, visit teneo.com/Vision2023.

Contact

Stephen Meahl

New York City

+1 (212) 886-1624

stephen.meahl@teneo.com