Udayavni Special

62% Indian CEOs took salary cuts due to pandemic: Survey


Team Udayavani, Oct 7, 2020, 6:33 PM IST

New Delhi: Corporate leaders in India are less confident about economic growth and 6 out of 10 CEOs have taken salary cuts as part of the overall cost management measures amid the pandemic, according to a survey.

As per a survey carried out by KPMG India in August among 100 CEOs, only one-third of the respondents said they are confident of economic growth and 62 per cent of them have taken salary cuts as part of the overall cost management measures to sail through the pandemic.

Only 33 per cent of CEOs are confident of the economy and 42 per cent are optimistic about the growth of their companies, as against 78 per cent and 84 per cent in the January survey, respectively.

Commenting on the findings, Arun Kumar, the chairman of KPMG India, says the significant shift in CEOs’ priorities seen over the last six months reflects the agility with which they had to deal with the challenges of the pandemic.

“Looking forward, like their global counterparts, CEOs here are less confident about global and domestic economic growth than they were at the onset of the year. Their earnings outlook is clearly challenged,” he says.

The respondents listed supply chain risks and digital disruption and enhancing Environmental, Social, and Corporate Governance (ESG) programmes as their top concerns.

As per the survey, a large number of respondents have identified “lack of skills and capabilities in the IT area” as one of the most significant challenges to growth.

The CEOs have already seen accelerated progress in digital transformation during the pandemic and are likely to prioritise investments in new technologies to become future-ready, and 89 per cent of them plan to invest more in technology, the survey noted.

As per the survey findings, Indian corporate leaders are better positioned than their global counterparts in terms of growth in earnings as only 19 per cent of them expect earnings to either remain flat or decline, while 23 per cent globally foresee their companies’ earnings to stagnate or fall.

Moreover, CEOs globally feel a greater need to re-evaluate their purpose amidst the pandemic, than their domestic CEOs. As much as 79 per cent of CEOs globally have had to re-evaluate their purpose, compared to only 37 per cent here.

The pandemic has led to a dramatic shift in how business leaders are assessing potential risks now, compared to the pre-pandemic times.

CEOs, while ensuring the short-term survival of their companies, are likely to delve deeper into the impact of this crisis to realign strategies for long-term growth.

As much as 89 per cent would continue to build on use of digital collaboration and communication tools, while 77 per cent believe they have access to wider talent pools and 48 per cent will consider downsizing their office spaces, the survey noted.

 

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

K’taka COVID-19 update: 3,146 new cases, 7384 discharges, 55 deaths on Oct 27

Union minister Smriti Irani tests positive for Covid-19

Delhi University Vice-Chancellor Yogesh Tyagi suspended by President over misconduct

Rhea’s accusations against Sushant’s sisters speculative: CBI

Charities replicate Indian kitchen model to tackle UK childhood food crisis

Indian expats can now provide local address in passports

Hong Kong bars Air India flights for fourth time as passengers test positive for COVID-19



Related Articles More

Infosys becomes carbon neutral; outlines ESG vision for 2030

Govt urged to include tobacco in RoDTEP scheme to boost export

Cognizant names Rajesh Nambiar as Chairman and MD of India operations

Hero MotoCorp, Harley-Davidson join hands for Indian market

E-comm cos sell goods worth $4.1bn in first week of festive sale: RedSeer

MUST WATCH

Gadaga Accident victim arrives to vote in ambulance

Mangalore Dasara -2020 Highlights

Paschima Jagara Pooja starts at Sri Krishna Math

Mysore Dasara 2020: A Simplified Historical Jambusawari

Dasara 2020: Covid Anxiety Disrupts Mysore

Latest Additions

K’taka COVID-19 update: 3,146 new cases, 7384 discharges, 55 deaths on Oct 27

Another person held in TRP rigging scam

Mandya: More than 70 devotees fall sick after consuming temple prasadam

Surendra Bantwal murder case: Accused remanded to police custody for 5 days

Lift travel restrictions in Mumbai trains in non-peak hours: Maha to Rlys

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.