CEOs: 93% happy investing here

The vast majority of chief executives of multinational companies operating here regard the investments by their companies in Ireland as successful, with a third considering increasing their investments here this year.

The PwC 2012 CEO Pulse survey shows that 93% of multinational companies rate their investment in Ireland a success and also found that more than half of the chiefs executive expect revenues (59%) and profits (54%) to grow. They are also more confident in terms of profit growth (60%) compared to their Irish-based counterparts (51%).

On the pay front, 35% of all CEOs anticipate they will have to increase basic pay for employees this year, with 56% of multinational firm bosses planning to increase pay, while just 20% of indigenous Irish companies are considering pay rises. Just 4% of chiefs executive expect to impose pay cuts over the next 12 months.

As many as 40% of CEOs expect to raise employment levels in the coming year with a further 40% indicating that they would hold employment levels; 20% expect to cut jobs. Irish-based bosses are slightly more positive, with 44% planning to expand employment compared to 39% for their multinational counterparts.

The survey found that the top two factors critical for Ireland’s attractiveness as a location of choice for foreign direct investment are the retention of our 12.5% corporate tax rate (82%) and maintaining Ireland’s track record as a good place to do business (61%).

Speaking at the survey launch Enterprise Minister Richard Bruton said: “With 40% of businesses planning to increase employment and 40% planning to hold employment levels, prospects for job creation are at their most positive for four years — and it is very interesting to note that indigenous companies are even more positive about job creation than multinationals.”

Business confidence appears to be improving with 80% having a ‘favourable’ or ‘no change’ outlook for Ireland’s economy, up from 59% last year.

Chiefs executive of indigenous businesses are more positive (27%) on the outlook for Ireland’s economy next year compared to their multinational counterparts (19%).

The survey also found that 82% of the business leaders in the 195 companies surveyed will support the Fiscal Stability Treaty referendum, 17% don’t know and 1% will not support it.

The survey findings anticipate that a significant amount of change will continue to take place within Irish businesses in the year ahead, primarily focusing on cost containment (72%), strategies for managing talent (68%) and technology investment (63%).