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! 1Stl Annuul Globul CEO Suivey 2012
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We ull know tlese uie unceituin times. Stoiies
ol stiengtlening economies, employment
impiovements und bieuktliougl pioducts
liom some puits ol tle woild uie ollset by
iepoits on nutuiul disusteis, goveinment debt,
iegulutoiy clunges und politicul tuimoil in
otleis. It's luid to know loi suie wlicl wuy
tle wind is blowing.
Wlile clunge piesents oppoitunity loi some,
most business tliives on stubility ÷ und tle
luct tlut tlis is elusive mukes loiwuid pluns
incieusingly luid to develop. No wondei tlut
conğdence is down liom wlut we suw lust
yeui. Yet it's still ut u ieusonubly ligl level.
Wly? Becuuse despite tle unceituinties,
tle long-teim tiends tlut luve encouiuged
coipoiutions to invest in tle emeiging woild,
cieute innovution und develop tulent iemuin
ğimly in pluce.
Most multinutionul compunies luve been
udjusting, witlout lunluie, to tle new globul
economic ieulity loi some time. Tlis yeui,
CEOs luve mude cleui tlut tley uie not bucking
uwuy liom globul giowtl piogiummes but in
luct uie deepening tleii commitments to tleii
most impoitunt muikets. Among tle CEOs we
inteiviewed, wletlei bused in Ituly, Muluysiu,
tle US oi Soutl Aliicu, tle goul ol deliveiing
iesults by giowing wlole opeiutions ÷ not just
sules ÷ outside ol tleii lome buse is tle sume.
Tlese uie umbitious ugendus, wlicl is
somewlut suipiising given economic
unceituinties. How uie CEOs going to muke it
luppen? Tlis yeui, we usked CEOs low tley
tlink tleii time is best spent, und two-tliids
suid tley wunt to devote moie uttention to
developing tulent pipelines und meeting witl
customeis (see Figuie 1). Foui yeuis into tle
ğnunciul ciisis, we ğnd CEOs moie giounded
ubout tle iisks und clunging conditions loi
giowtl. Tle locus on tulent und customeis
toduy is u nutuiul 'next step' towuids
estublisling tleii oigunisutions in tle muikets
wleie tley opeiute und building tle tiust
needed loi tle business ol tomoiiow.
Tlut's wly so muny CEOs uie clunging tulent
stiutegies to impiove tleii ubility to uttiuct
und ietuin tle iiglt people. Skills sloituges uie
veiy ieul ŋ just 12% ol CEOs suy tleyłie ğnding
it eusiei to liie people in tleii industiies ÷ und
tle constiuints uie luving quuntiğuble impucts
on coipoiute giowtl. Just us oui customeis
uie clunging iupidly, so uie oui woikloices ÷
und oui tulent needs uie clunging, too.
I wunt to tlunk tle moie tlun 1,2S0 compuny
leudeis liom 60 countiies wlo sluied tleii
tlinking witl us. Tle success ol tle PwC
Annuul Globul CEO Suivey ÷ now in its
1Stl yeui ÷ is diiectly uttiibutuble to tle
cundid puiticipution ol leudeis uiound tle
woild. Tle demunds on tleii time uie muny
und vuiied; we gieutly uppieciute tleii
involvement. And I um puiticuluily giutelul
to tle 38 CEOs wlo sut down witl us neui tle
end ol 2011 loi moie extensive conveisutions.
Tleii tlouglts udded invuluuble context to
oui quuntitutive ğndings.

Dennis M. Nully
Cluiimun, PiicewuteilouseCoopeis
Inteinutionul
1Stl Annuul Globul CEO Suivey 2012 "
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Figure 1: CEOs’ personal priorities include spending more time with customers and developing leaders
Q: Do you wish that you personally could spend more time, less time or the same amount of time on each of the following activities?
Net priority (% of respondents reporting ‘More time’ minus %
of respondents reporting ‘Less time’)
Develop leadership and talent pipeline
Meet with customers
Improve organisational efficiency
Set strategy and manage risks
Develop operations outside of my home market
Personal time or community service
Meet with regulators and policy makers
Meet with lenders and providers of capital
Meet with the board and shareholders
%
66
66
57
51
40
34
5
-4
-5
Operations
People
Governance
Base: All respondents (1,258)
Source: PwC 15th Annual Global CEO Survey 2012
# 1Stl Annuul Globul CEO Suivey 2012
B3',"',*
Conğdence disiupted ........................................................ S
Buluncing globul cupubilities
und locul oppoitunities ..................................................... 9
Resilience to globul disiuptions
und iegionul iisks ............................................................ 16
Tle tulent clullenge ....................................................... 20
Wlut's next ..................................................................... 27
Finul tlouglts liom oui CEO inteiviews ......................... 30
Reseuicl metlodology und key contucts ......................... 36
Acknowledgements ......................................................... 37
Reluted ieuding ............................................................... 38
1Stl Annuul Globul CEO Suivey 2012 $
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Tle yeui 2012 unlolds witl wide
dispuiities in potentiul outcomes in
muny economies, und little piospect ol
u cooidinuted tuinuiound. Just 1S% ol
CEOs believe tlut tle globul economy
will impiove tlis yeui (see Figuie 2).
Inciementul impiovements in business
optimism seen in tle PwC 1Stl Annuul
Globul CEO Suivey ovei tle pust
two yeuis uie ieveising. In u sign ol
conveiging economic loitunes,
conğdence declined in puiullel umong
CEOs ucioss ull iegions, except loi tle
Middle Eust und Aliicu.
Yet businesses uie not on tle delensive.
CEOs uie tuking delibeiute steps to
impiove tleii businesses' iesilience
uguinst luitlei disiuptions und to
giow in tle muikets tley believe uie
most impoitunt loi tleii lutuie. As u
iesult, 40% uie Łveiy conğdentł in
piospects loi ievenue giowtl in tleii
own compunies in tle next 12 montls
(see Figuie 3).
F Willium McNubb III
Cluiimun, Piesident und CEO
Tle Vunguuid Gioup Inc.
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ğscu/ p/un ín the US ís probub/y our
chíef concern. The fuct thut there ís
not one uctuu//y contríbutes to the
murket vo/utí/íty.
Eidul Kuiumeicun
Piesident und CEO
Eczucibuąi Gioup A S
We do not know how the Arub Spríng
wí// end or spreud. We donłt know
how the sítuutíon wíth lrun ís goíng to
deve/op. We ure uncertuín ubout the
posítíon thut the US wou/d /íke to tuke
-0$2"#$+#1-)0$4$-0$5)+2"$6*+-'&$&0,$$
the Mídd/e Eust. There ure po/ítícu/
uncertuíntíes thut muke ít hurd to
forecust, und these ure of concern.
Figure 2: Half of CEOs expect the global economy to decline in 2012
Q: Do you believe the global economy will improve, stay the same,
or decline over the next 12 months?
15%
4%
34%
48%
36%
Improve
Stay the same
Decline
Don’t know
Base: All respondents (1,258)
Source: PwC 15th Annual Global CEO Survey 2012
% 1Stl Annuul Globul CEO Suivey 2012
CEOs uie munoeuviing to outpuce tle
competition und tle muiket, iutlei
tlun ielying on iiding economic
updiults oi just iiding out volutility.
Tley uie neuily tliee times moie
conğdent in tleii own cupucity to
geneiute giowtl in tleii business tlun
tley uie in tle globul economy's
giowtl piospects.
At ğist glunce, tlis ielutive optimism
seems unlounded. Tle unlolding
Euiozone ciisis ulone is cieuting moie
ioom loi disuppointment. So wlut does
tlis puttein meun? Slould we woiiy
tlut tle cluit suggests we miglt be
lucing 2008 ull ovei uguin, peilups
witl unotlei ciisis piecipituting u
mussive lull in business uctivity?
Altei ull, not eveiyone cun outpuce
tle muiket.
Possibly, but we don't tlink so. In oui
view, CEO conğdence in business
giowtl is lolding up becuuse ol
tliee impoitunt und ieluted tiends:
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bulunce sleets, impioved cost
stiuctuies und u gieutei uwuieness
ol globul iisks, CEOs uie moie
piepuied. Tley don't tlink giowtl
will be eusy; but tley do believe
tley'ie moie ieudy loi tuibulence
tlun tley weie loui yeuis ugo.
!"#$/*+#$*-$*-8#+%1#-%$,-.$)&11#/)#$
%&$,-.$0/&1$#1#/(*-($#)&-&1*#+$
9$moie pionounced tlun in uny peiiod
ovei tle pust decude ÷ cieutes vust
muiket potentiul. Hull ol CEOs bused
in developed muikets believe tlut
emeiging economies uie moie
impoitunt to tleii compuny's lutuie,
us do 68% ol CEOs wlo uie tlemselves
bused in emeiging muikets. Tle woild
muy be slowed loi u time by ğnunciul
pioblems, but tlis stiuctuiul slilt is
potentiully biggei tlun tle institutionul
pioblems und depiessed giowtl in
developed economies. Giuduully iising
incomes und economic oppoitunities
Biiun Dupeiieuult,
Piesident und CEO,
Muisl & McLennun Compunies Inc.
The bu/unce sheets of compuníes $
ure very strong. The cush $
bu/unces ure extruordínurí/y $
hígh. Compuníes ure íncredíb/y
efğcíent. Everyonełs poísed for
uctívíty, und wíth u /ítt/e /ess
uncertuínty, youłd see the who/e
wor/d grow economícu//y.
Figure 3: Short-term confidence has declined – but remains well above the levels seen in 2009 and 2010
Q: How confident are you about your company’s prospects for revenue growth over the next 12 months? Yearly comparison.
Very confident about company’s
prospects for revenue growth
over the next 12 months
26%
31%
41%
52%
50%
21%
31%
48%
40%
0
10
20
30
40
50
60%
2012 2010 2009 2008 2007 2006 2004 2005 2003 2011
Base: All respondents (2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150; 2007=1,084; 2006 (not asked); 2005=1,324; 2004=1,386; 2003=989)
Note: Percentage of CEOs who are very confident about their companies’ prospects for revenue growth
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 &
loi millions moie people uiound tle
woild luve enoimous implicutions loi
inliustiuctuie spending, sustuinubility
teclnologies, demund loi leultl cuie,
educution und peisonul ğnunce
pioducts, und tle list goes on.
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In pust economic downtuins, tle woild
expeiienced iises in piotectionism.
And since tle most iecent downtuin
begun, negotiutions in tle Woild Tiude
Oigunisution's Dolu Round luve
loundeied und u lew goveinments luve
tuken meusuies to piotect domestic
industiies tley considei vitul. But tlut
slouldn't obscuie ieul piogiess
iecently on biluteiul und iegionul levels
in losteiing cioss-boidei commeice
und investment. Tiude lus iebounded
since tle downtuin begun, uccoiding
to dutu liom tle Woild Tiude
Oigunisution.
1
Add in tle gieutei
mobility ol cupitul toduy (botl ğnunciul
und lumun) towuids new oppoitunities
und tle lull potentiul ol u lui moie
closely integiuted woild comes
togetlei. CEOs believe tlut tle loices
ol globul integiution will stuy on tiuck:
4S% believe tle woild will become
moie open to liee inteinutionul tiude
(witl lewei tlun u tliid expecting u
pullbuck) und S6% uie convinced tlut
cioss-boidei cupitul Ġows will not come
undei new constiuints.
As u iesult ol tlese luctois, business
leudeis' commitment to doing moie
business globully is, il unytling,
ucceleiuting despite economic,
iegulutoiy und otlei unceituinties.
Risks uie weiglted towuids economic
und in puiticului policy tlieuts in
2012, but tle lundumentuls loi lutuie
giowtl uie still squuiely in pluce.
Businesses luve udupted tleii
stiutegies to tuke udvuntuge wlen tley
inevitubly ieusseit tlemselves.
1 WTO dutu slow globul tiude iebounded in 2010 to ietuin to its 2008 levels (www.wto.oig/englisl/news_e/pies11_e/pi628_e.ltm).
Fiuncesco Stuiuce
CEO, Enel Gieen Powei SpA
We thínk government ğscu/ po/ícíes
míght become ímportunt críteríu ín
choosíng where compuníes ínvest
und how they ínvest.
Yoslio Kono
Piesident und CEO
Tle Noiinclukin Bunk
l thínk ít necessury to ínvest ín
emergíng murkets such us BRlCs.
However, sínce our ínvestment
vo/umes ín them ure wuy too smu//
und theír country rísks dífğcu/t to
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prudent ubout thís.
Figure 4: Talent remains priority no. 1 for CEOs
Q: To what extent do you anticipate changes at your company in any of the following areas over the next 12 months?
Strategies for managing talent
Organisational structure (including M&A)
Approach to managing risk
Captial investment decisions
Focus on corporate reputation and rebuilding trust
Capital structure
Engagement with your board of directors
No change Some change A major change
%
2012
%
2011
21
26 50 22
32 50 17
38 42 19
49 35 15
55 29 14
63 27 8
55 23 17
25 47 27
23 54 23
23 48 28
36 41 22
50 34 15
52 34 12
52 31
Base: All respondents 2012 (1,258); 2011 (1,201)
Source: PwC 15th Annual Global CEO Survey 2012
' 1Stl Annuul Globul CEO Suivey 2012
Tleie will be winneis und loseis us
businesses pivot to uddiess muikets
tley uie less lumiliui witl. CEOs see
iisks und customei segments tliougl
dilleient lenses tlun tley've used
in tle pust, und uie locusing on tle
tulent tley need to giow tleii
businesses sustuinubly.
Tlese uie tle piioiities CEOs desciibed
to us, und tlut we tuke u closei look ut
in tlis iepoit:
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3&),3$1,/;#%$-##.+<$CEOs uie
simultuneously building locul
cupubilities in impoitunt muikets,
extending opeiutionul lootpiints,
building stiutegic ulliunces und
cieuting new netwoiks loi new muikets
tlut include ieseuicl und development
(R&D), munuluctuiing und seivices
suppoit. Tley'ie udupting low tley
go to muiket, ieconğguiing piocesses
und ut times entiie opeiuting models.
=../#++*-($/*+;+$%",%$(/#,%#/$
LQWHJUDWLRQDPSOLğHV It muy leel
us il disiuptions uie multiplying us
tleii impucts expund ucioss widely
dispeised und ğnely tuned supply
cluins. Duiing 2011, globul businesses
lud to conliont u poitlolio ol
unieluted ligl-impuct globul iisks ÷
liom politicul upleuvul und u nucleui
disustei to mussive Ġoods und u
soveieign debt ciisis. Tliougl it ull,
CEOs luve leuined tlut piudent iisk
munugement slould locus less on tle
piobubilities ol puiticului events, und
moie on undeistunding tle potentiul
consequences tley luve to piepuie loi
liom u iunge ol iisks. Muny compunies
weien't diiectly ullected by tle
impiobuble Fukuslimu ciisis, loi
exumple, oi tle Ġoods in Tluilund.
Howevei, supply cluin disiuption us
seveie us tlose two events cuused
slould be on eveiy compuny's iudui.
Foi oui 1Stl Annuul Globul CEO
Suivey, we polled 1,2S8 CEOs bused in
60 dilleient countiies liom Septembei
tliougl to euily Decembei 2011.
We supplemented tleii comments
on pluns loi business giowtl und
ussessments ol constiuints witl insiglts
liom tle globul PwC netwoik und
in-deptl inteiviews witl 38 CEOs liom
ull iegions. Tle combined conclusions
loim tle busis ol tlis iepoit.
Twín uíms for 2012: Secure
growth ín new murkets,
uchíeve more certuínty ín the
domestíc murket
As businesses luve luced volutile
globul conditions since 2008, CEOs
luve ciulted new uppioucles to iisk
munugement und new stiutegies in
iesponse. But tley'ie not going buck
on tle delensive, us tley did in 2008.
Risk is not being ignoied, but otlei
issues uie liglei on tle ugendu (see
Figuie 4 on puge 7). Tlis yeui, CEOs
uie locusing on bettei execution in
tlose muikets wlicl uie impoitunt to
tle lutuie ol tleii business wlile ulso
seeking stubility und moie ceituinty in
tleii domestic muikets.
Tlis wus u messuge we consistently
leuid liom CEOs, ieguidless ol wleie
tley uie bused. ¨We udopted u stiutegy
culled 'piotect' in most cuses in tle
mutuie muikets. We puy moie uttention
to pioğt muking und low to tiunslei
tle coie business into cusl cows,¨ suid
Yung Yuunqing, Cluiimun und CEO ol
Lenovo. ¨In emeiging muikets, we
luve piimuiily udopted un 'uttuck'
stiutegy. Tlut meuns we luve to puy
moie uttention to muiket sluie ut tle
beginning insteud ol pioğt. We would
suy tlut it is dilğcult to muke money il
muiket sluie is less tlun 10%.¨
Similuily Keitl McLougllin, Piesident
und CEO ol AB Electiolux pointed
out: ¨Oui goul is to muintuin muiket
sluie in tle mutuie muikets. Tlose
muikets geneiute u lot ol euinings
so we luve no pluns to sliink oui
piesence tleie. On tle otlei lund,
we uie plunning to invest substuntiully
in tle emeiging muikets.¨
>,;*-($%,3#-%$+%/,%#(*)<$Not luving
tle iiglt tulent in tle iiglt pluce is u
leuding tlieut to giowtl loi muny
CEOs. One in loui CEOs suid tley weie
unuble to puisue u muiket oppoitunity
oi luve lud to cuncel oi deluy u
stiutegic initiutive becuuse ol tulent
constiuints. Tleie uie sloit-teim
issues, sucl us un ucute sloituge ol
tiuined munugeis und teclnicully
skilled woikeis. And tleie uie long-
teim conceins witl tle cupucity ol
educutionul systems eveiywleie to
keep up witl business needs.
Tlese uieus suggest u set ol questions
tlut business leudeis slould considei
in oidei to oveicome execution
clullenges in 2012 und position loi
longei teim giowtl ÷ questions wlicl
we comment on in tle lust section ol
tlis iepoit.
Andy Gieen
CEO, Logicu Plc
Most c/íents ure tu/kíng ubout
reductíons ín spend. l thínk they $
wí// eventuu//y move to do more
outsourcíng, whích wí// be good, $
but thut wí// tuke some tíme us they
thínk through the consequences.
Whutłs c/eur, though, ís they cunłt
stop spendíng on techno/ogy becuuse
the wuy the wor/d ís chungíng.
Tidjune Tlium
Gioup Cliel Executive, Piudentiul Plc
Cu/turu//y, we ure u compuny
focused on growth. For me cost ís
hygíene. lt ís necessury ín the sume
wuy thut breuthíng ís, but breuthíng
hus never been your /ífe strutegy. $
ltłs u necessury condítíon to be u/íve,
no more. Thutłs how l /ook ut cost
munugement. You donłt cut your
costs ínto greutness. You uchíeve
greutness by generutíng more
proğts, beíng u wínníng compuny $
ín your murket. So the cu/ture ís
very front-end dríven.
1Stl Annuul Globul CEO Suivey 2012 (
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A sensible stiutegy loi globulisution
toduy meuns lui moie tlun building
cleuply in one locution und selling
in unotlei. Wlut lus clunged is tle
wuy opeiutions uie conğguied. Indiułs
Tutu is now tle luigest munuluctuiei in
tle UK. Tuiwun's HTC pioneeied tle
use ol Google's Andioid soltwuie. New
opeiutionul stiutegies uie iequiied to
compete successlully in sucl muikets.
¨You luve to innovute, design,
munuluctuie und souice locully to be
successlul unywleie,¨ suid Duvid Cote,
Cluiimun und CEO ol Honeywell. And
tlut's wlut CEOs uie investing to do:
build lully Ġedged opeiutions,
including munuluctuiing, in eucl ol
tleii piioiity muikets, build deepei
ielutionslips witl tleii customeis,
innovute unew, tuke udvuntuge ol locul
tulent und biunds, ieduce iisk und
stiengtlen supply cluins.
Ovei 60 dilleient economies weie
numed by CEOs us key oveiseus
muikets, some udjucent to tleii lome
muiket und otleis on tle otlei side ol
tle woild. Solid giowtl und iising
domestic spending powei (see Figuie S)
in moie economies uiound tle woild,
sucl us Indonesiu und Tuikey, loi
exumple, uie piopelling CEOs pust u
mindset locused solely on tle BRICs.
Muiiu Rumos
Gioup Cliel Executive,
ABSA Gioup Ltd
lt mukes u// the sense ín the wor/d to
operute ín u much more joíned-up,
íntegruted wuy und tuke udvuntuge
of un íncreusíng/y íntegruted c/íent
buse ucross Afrícu. And thutłs whut
wełre doíng.
Cleung Yun
Cluiiludy, Nine Diugons Pupei
(Holding) Ltd, Clinu
There ís stí// /urge room for
ímprovement on the /ívíng stundurds
of most of the Chínese popu/utíon.
We huve not yet reuched u bu/unce
poínt on thís, so thís wí// constítute $
u strong drívíng force for future
domestíc consumptíon growth.
Figure 5: CEOs eye the expanding buying power of emerging markets
Private consumption at current market exchange rates
2010 2020
Private consumption in
current prices and market
exchange rates, US$ millions 20
10
5
Australia
Canada
China & Hong Kong
Japan
Korea
Russia
India
Turkey
Sub-Saharan Africa
Latin America
US
EU27
ASEAN
MENA
Source: Oxford Economics
)* 1Stl Annuul Globul CEO Suivey 2012
Tle US und Geimuny weie umong
tle economies identiğed by tle most
CEOs, und mentioned us economies
wleie tley uie expunding cupubilities.
Equul numbeis ol CEOs liom
developed und emeiging muikets
identiğed tle two countiies us
impoitunt. Clinu piesents u dilleient
pictuie ol diveisiğcution: itłs impoitunt
to 37% ol CEOs bused in developed
economies veisus 24% ol CEOs
bused in emeiging economies.
Muny ol tleii objectives in tle next
12 montls uie similui (see Figuie 6).
Building munuluctuiing cupucity, loi
exumple, is impoitunt loi muny CEOs
in eucl ol tleii key muikets. Clinu
luces incieusing competition us CEOs
ieucl luitlei uğeld. Ol tlose CEOs
wlo listed Biuzil oi Indiu us impoitunt
to tleii giowtl piospects, uiound u
tliid cite munuluctuiing locully us un
objective loi 2012; 31% plun to build
munuluctuiing cupucity in Russiu, und
30% in Clinu. A similui puttein lolds
loi pioduct development; CEOs uie
seeking to souice innovution liom
witlin tleii key muikets.
Tle iecoveiy in loieign diiect
investment (FDI) in 2010 coiioboiutes
tlis tiend.
2
InĠows into Biuzil und
Indonesiu moie tlun doubled liom
2006 to 2010, ubove tle 70% iise in FDI
into Clinu und Russiu. FDI inĠows
into mutuie economies on tle otlei
lund, uie Ġut ŋ oi down sluiply in
tle cuse ol tle Euiopeun Union.
Wlile FDI outĠows liom Oigunisution
loi Economic Coopeiution und
Development (OECD) membei
economies luve ulso eused ovei tle
peiiod, tlose liom Indiu incieused to
USS14.6 billion und tlose liom Clinu
iose neuily tlieelold to USS60.1 billion.
2 OECD FDI in Figuies (Octobei 2011 ievision).
Puilin Cluclottuwoin
Piesident und CEO, PTT Plc
We huve sígníğcunt ínvestments $
ín North Amerícu, Austru/íu und
ucross Asíu. And íf the Europeun
countríes e/ímínute theír
protectíoníst po/ícíes, Europe $
wou/d be very uttructíve to us u/so.
So lłm ruther conğdent thut we $
cun muíntuín our growth.
Figure 6: Growing customer bases is far from the only objective of CEOs in their key overseas markets
Q: Which of the following objectives do you hope to achieve in the next 12 months? (The top 10 countries mentioned by CEOs in ‘Which countries,
excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12 months?’)
Australia Japan France UK Russia
Germany India Brazil USA China
Build R&D/innovation capacity or acquire intellectual property
Build manufacturing capacity
Access raw materials or components
Access local source of capital
Build internal service delivery capacity
Access local talent base
Grow your customer base
79
55
46
14
34
30
27
87
53
49
16
26
31
19
78
47
36
12
5
12
22
76
42
38
9
6
11
15
81
44
34
10
21
10
29
85
49
36
17
19
21
19
71
46
30
23
19
17
26
83
61
55
11
31
33
22
79
61
54
12
31
38
31
72
32
32
16
14
10
24
Base: China (383); USA (275); Brazil (188); India (176); Germany (152); Russia (101); UK (81); France (66); Japan (62); Australia (53)
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 ))
FDI is commonly viewed us u meusuie
ol opeiutionul commitment, witl tle
potentiul loi botl locul job cieution und
knowledge tiunsleis. So u iise in FDI
indicutes deepei cioss-boidei ties tlun
tiude ulone would imply.
CEOs uie being guided by domestic
customei demund in cloosing tleii
piioiity muikets (see Figuie S).
Meusuies to integiute pioduct,
seivice lubs, ieseuicl lucilities und
opeiutions in eucl muiket stem liom
tlut commitment.
?'*3.$&/$2'@A$Acquisitions ulwuys
luve u iole to pluy in giowtl pluns.
Tlis yeui, ucquisitions uie moie likely
to be u component ol stiutegies loi
CEOs bused in developed muikets,
peilups ieĠecting clussic consolidution
in mutuie economies: 1S% suy M&A
olleis tle muin oppoitunity loi giowtl
loi tleii compunies veisus 10% in
emeiging economies. CEOs in
developed economies weie uctive
deul-mukeis in 2011, witl 26%
completing u cioss-boidei tiunsuction,
und weie ulso moie likely to luve
divested un opeiution. Responses tlis
yeui indicute tle potentiul ol u modest
pull-buck on inteinutionul deul-muking
ovei tle next 12 montls: 28% ol
CEOs globully plun to complete u
cioss-boidei deul in 2012, u decline
liom tle 34% wlo ugieed lust yeui
(see Figuie 7 oveileul).
Tle pool ol potentiul ucquiieis is
becoming moie diveise, us uie tle
tuiget locutions. Wlile most cioss-
boidei deuls continue to stem liom
investois in eitlei Noitl Ameiicu oi
Westein Euiope, Clinese ğims luve
emeiged us mujoi inteinutionul
investois, us luve Indiun compunies,
und tlis tiend is set to continue.
¨Compuny vuluutions uie now mucl
moie uttiuctive tlun tley weie lust
yeui,¨ suid Ajuy G. Piiumul, CEO ol
Piiumul Gioup Ltd. ¨Toduy, we
would puy lull oi one-tliid ol wlut
we would luve puid loi tlese
compunies lust yeui.¨
CEOs bused in Aliicu und tle
Middle Eust uie tle most bullisl
ubout continued deul-muking in 2012:
40% expect to complete u cioss-boidei
tiunsuction in tle next 12 montls.
Foieign investment into Aliicu liom u
numbei ol souices lus souied in iecent
yeuis, diiven muinly by tle mining und
oil industiies, but witl incieusing
inteiest in touiism, telecoms und
constiuction.
The tux udvuntuge
Muiket oppoitunity, nutuiul iesouices, tulent ... ull ol tlese luctois muttei
wlen compunies decide wleie und low to locute opeiutions. But tux muy be
tle most signiğcunt: 44% ol CEOs suy tux policies uie u Łsigniğcunt luctoił in
tleii decision-muking on cioss-boidei locutions. Tlis lus not gone
unnoticed. Nutions uie incieusingly competing on tux to lostei in-bound
investment. Businesses, innovution und skilled people will Ġow to countiies
wleie tux systems encouiuge und ollei tle piospect ol economic giowtl.
CEOs uie puying close uttention to clunging tux conditions us u iesult ol
ligl debts und değcits in developed economies: 29% uie unticiputing tleyłll
clunge giowtl stiutegies us u iesult, witl 19% globully 'extiemely
conceined' ovei un incieusing tux buiden in countiies wleie tley opeiute.
Goveinments continue to ieloim tleii tux systems to lelp businesses giow
und uttiuct investment und employment. Ovei tle pust seven yeuis moie
tlun 60% ol economies mude puying tuxes eusiei, witl 244 ieloims,
uccoiding to Puying Tuxes 2012, u study liom PwC, tle Woild Bunk und
IFC, wlicl meusuies tle euse ol puying tuxes ucioss 183 economies
woildwide. Globully, tle totul tux iute lus lullen by 8.S% since 2006; tle
time iequiied to comply witl tuxes declined by moie tlun one duy pei yeui
(S4 louis); und tle numbei ol tux puyments iequiied diopped by ğve.
3
3 Puying Tuxes 2012 (www.pwc.com/gx/en/puying-tuxes/index.jltml).
Hussein Huclem
CEO Middle Eust und Aliicu, Aiumex
We ure ín key /ocutíons thut wí//
enub/e us to offer our customers u
g/obu/ servíce but we concentrute $
on our customers bused ín emergíng
murkets, where we huve better
murgíns. You cunnot do busíness
wíthout connectíons to Europe or
the US. You huve g/obu/ hubs ín
emergíng murkets, ín Ðubuí, ín
lndíu, but ut the sume tíme you
cunnot ígnore Amsterdum.
Amsterdum ís u g/obu/ Europeun
hub so you huve to go there.
Rolunu Rozlun
CEO, ASTRO Muluysiu Holdings
Mu/uysíu ís u sturtíng poínt for
/uunchíng u true mu/tí-ethníc und
mu/tí-/ínguu/ proposítíon thut $
hus u presence ín muny murkets.
)! 1Stl Annuul Globul CEO Suivey 2012
Acquisitions uie ulwuys iisky, even
duiing u time wlen ussets cun be
ucquiied ut seemingly uttiuctive
piices. Yet oui ieseuicl suggests tlut
ucquisitions in emeiging muikets ÷
exuctly tle type ol ucquisition tlut
uppeuis to be moie popului toduy ÷
uie puiticuluily iisky, witl lowei
clunces ol success even loi pioven
deul-mukeis. In oui expeiience
between S0-60% ol deuls tlut go into
due diligence in emeiging muikets luil
to complete.
4
Dilğculty in justilying
emeiging muikets vuluutions is tle
most common ieuson tlut deuls luil.
Foi exumple, in Clinu, ligl giowtl
und stiong competition liom otlei
loieign biddeis, un emeiging piivute
equity industiy und domestic iivuls
luve diiven up vuluutions. Tle most
common issue to emeige in deuls in
Indiu conceined puitneiing.
Acquiieis will ulso need to leuin new
post-meigei integiution competencies
to muke tlese deuls woik. We believe
tlut ovei 10% ol deuls tlut complete
iesult in signiğcunt pioblems post-
completion. In un ussessment ol ten
public cuses, we lound tlut post-deul
pioblems cost tle buyei on uveiuge
49% ol tle oiiginul investment.
0RGLI\RUH[SRUW" How businesses
uclieve tle iiglt mix between locul
munuluctuiing und inteinutionul
supply cluins to seivice locul needs is
unotlei değning question loi giowing
in new muikets. Stiutegies nutuiully
dillei; 'locul' will be lome oi intiu-
iegionul loi some CEOs und u tlousund
miles uwuy loi otleis. But in 2012, tle
tilt is cleuily towuids decentiulising,
cieuting moie pioducts wlose design
us well us pioduction und distiibution
is moie loculised.
4 PwC, ŁLevelling tle pluying ğeld: uvoiding tle pitlulls ol tle pust wlen doing deuls in emeiging muiketsł (2012).
Muitin Senn
CEO, Zuiicl Finunciul Seivices Gioup
For u mu/tínutíonu/ compuny$
such us Zurích, the Łgreenğe/dł
upprouch ís sub-optímu/. lt tukes
too /ong to muke u meuníngfu/
contríbutíon to the group. So we
emp/oy other optíons: purtnershíps
und ucquísítíons.
Yung Yuunqing
Cluiimun und CEO, Lenovo
We huve expunded our deve/opment
of personu/ computers to ínc/ude
smurt phones, tub/et computers $
und smurt Tvs. Therefore, we huve $
u brouder spuce und stuge ín $
whích to deve/op.
Figure 7: A modest decline in cross-border M&A is expected in 2012
Q: Which, if any, of the following restructuring activities do you plan to initiate in the coming 12 months?
Responses of ‘Complete a cross-border merger or acquisition’.
% of CEOs anticipating M&A (left axis)
Number of deals (right axis)
70
110
100
90
N
u
m
b
e
r

o
f

d
e
a
l
s

(
1
0
0

=

2
0
0
8
)
%

o
f

C
E
O
s

a
n
t
i
c
i
p
a
t
i
n
g

M
&
A
80
0
40%
30%
20%
10%
2012F 2010 2009 2008 2011
Base: All respondents (2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150)
Note: Number of deals is all completed deals where final stake is greater or equal to 20%.
Source: PwC 15th Annual Global CEO Survey 2012; Dealogic
1Stl Annuul Globul CEO Suivey 2012 )"
¨On business development, we would
tiuditionully stuit witl u stunduid
pioduct set und udupt it to tle locul
needs. Tlut lus woiked well loi us loi
yeuis,¨ suid Luzuio Cumpos, CEO ol
SWIFT. ¨But in Indiu und Clinu you
need to loiget tle pioducts tlut you've
got und stuit liom sciutcl. Stuit liom
wlut it is tley need und build
liom tleie.¨
In eveiy mujoi geogiuplic muiket
identiğed by CEOs, moie compunies
uie uvoiding u simple expoit model.
Substuntiul piopoitions, between 17%
und 36%, suy tley uie designing new
pioducts speciğcully loi locul muikets
(see Figuie 8). Tle bulunce is suiely
clunging us compunies incieusingly
opeiute in dissimilui muikets und leuin
to segment bettei. Tle udvuntuges
(und expense) ol munuging u uniloim
biund ucioss muny muikets uie being
weigled uguinst tle dilleient needs,
cultuies und piice points ol dilleient
customei buses, und in muny cuses,
lound wunting. But businesses
innovuting locully need to ieucl scule
in oidei to stuy pioğtuble. So globul
und iegionul opeiutions still luve un
impoitunt iole in tle mix.
B#(1#-%,%*&-$*-$0&)'+7$CEOs expect
to eitlei modily oi cieute pioducts
loi speciğc muikets to suit locul
customei pieleiences. Some loui
billion ol tle woild's populution live in
countiies wleie tle pei cupitu income
is between USS 1,000-4,000 pei yeui.
Tlis vust segment iepiesents un
'Emeiging Middle' cluss in Clinu,
Indiu und elsewleie tlut is piompting
business leudeis to lundumentully
ietlink business stiutegies tlut luve
been successlul elsewleie.
Vulue piopositions designed loi
countiies ut tle uppei end ol tle
globul income distiibution seldom
woik loi tle needs ol tlis 'Emeiging
Middle'. It's not only pioducts tlut
must be udupted oi built unew, but ulso
pioduction, distiibution und muiketing
cupubilities ÷ in otlei woids, entiie
business models.
Micluel Wlite
Cluiimun, Piesident und CEO,
Tle DIRECTV Gioup Inc.
The reu/ príze ín uny emergíng
murket ís gettíng ut the buse of the
pyrumíd, the B mínus und the C
customer who hus íncome ín thut
USS8,000ŋ12,000 runge. So wełve
chunged our product offeríngs, $
our upprouch, und our busíness
3),#%$2)$.#$&.%#$2)$2&+1#2$&$3)+#$
&**)+,&.%#$)**#+-01$*)+$2"&2$
consumer, und thut hus un/ocked $
un enormous umount of growth $
for us ín Lutín Amerícu.
Figure 8: Pulling away from an export mindset to meet local demand
Q: For each of the countries that you intend to grow your customer base, which of the following three statements best describes your approach to
product and service development? (The top 10 countries mentioned by CEOs in ‘Which countries, excluding the one in which you are based,
do you consider most important for your overall growth prospects over the next 12 months?’)
20
39
37
27
34
37
22
42
34
17
49
31
36
30
32
24
42
33
24
43
29
19
50
30
26
46
25
30
46
20
100
75
50
25
0
%
Products and services are the same as in our headquarters’ market
Products and services are modified to meet local market needs
Products and services are developed specifically for local market requirements
Germany US France Brazil Japan Australia UK Russia China India
Base: China (302); USA (195); Brazil (156); India (139); Germany (110); Russia (88); UK (63); France (50); Japan (50); Australia (45)
Source: PwC 15th Annual Global CEO Survey 2012
)# 1Stl Annuul Globul CEO Suivey 2012
Success involves undeistunding
customei segmentution und tle
dynumics diiving it. Cutegoiy ÷ even
piice ÷ is not us impoitunt us solving u
speciğc set ol consumei pioblems tlut
uie not being met witl existing
pioducts. Bujuj, one ol Indiu's leuding
motoicycle munuluctuieis, iecently
luuncled tle Bujuj Boxei, tuigeted
towuids tle iuiul consumei. Tle Boxei
piovides u lunctionul beneğt ol liglei
cuituge und iesilience to pooiei iuiul
iouds, leutuies tlut uie liglly ielevunt
loi tle iuiul muikets. Tle Boxei wus
positioned us u spoits utility velicle ol
motoicycles, diiectly tuigeting tle
mule consumei witl powei, spoity
looks und lunctionul beneğts, und lus
been u success stoiy loi Bujuj Auto.
S

,QQRYDWLQJRQPXOWLSOHIURQWV
Impioving tle ellectiveness ol
innovution continues to be u mujoi
stiutegic piioiity. Tliee out ol loui
CEOs plun to clunge R&D und
innovution cupucity in 2012, ol
wlicl 24% expect 'mujoi clunge'.
Tlis is puitly ieluted to u widening
değnition ol innovution. CEOs in
industiies in tle tlioes ol disiuptive
clunge iequiie iudicul innovution;
il tleii business cunnot quickly
cieute new pioducts oi seivices tlut
customeis will buy, tley will not
suivive. Howevei, innovution does
not just meun end pioduct oi seivice
clunges ÷ it sometimes now includes
tuking costs out ol piocesses oi loiming
stiutegic ulliunces to colluboiute. Eucl
uspect ol tle business is luii gume loi
ieinvention. Executives uie tuigeting
clunges to tleii ievenue und muigin
models ÷ und tle oigunisution us well
ŋ to ğnd bettei wuys to innovute
ucioss muny dimensions.
6
Suppoiting tle cupucity to innovute is
ut tle loieliont ol piioiities loi CEOs
tlis yeui und in iecent PwC Globul CEO
Suiveys. Tlis is suiely u ieĠection ol
tle ucceleiuting teclnology udvunces
in muny industiies. Incieusingly, being
innovutive is undeistood us u piimuiy
dilleientiutoi too. As Luizu Helenu
Tiujuno Inucio Rodiiguez, CEO ol
ietuilei Muguzine Luizu SA in
Biuzil, told us: ¨Toduy, eveiytling's
u commodity. Seivice quulity is u
commodity, piice is u commodity. But
tleie uie two tlings tlut will muke u
dilleience loi youi compuny oi youi
piolessionul pioğle: customei seivice
und ielutions und innovution.¨
CEOs in insuiunce und usset
munugement uie umong tlose moie
likely to emplusise innovution in new
business models ÷ olten tuking
udvuntuge ol new teclnologies.
Tleii customeis uie geneiuting mussive
umounts ol inloimution tlut tley
cun now cuptuie, und unulysis ol tlis
dutu is piopelling compunies towuids
models bused on un entiiely digitul
supply cluin. A lui moie tloiougl
undeistunding ol customei beluvioui,
bused on dutu now uvuiluble, cun
clunge low un undeiwiitei cieutes
policies loi customeis, loi exumple.
CEOs in communicutions, und mediu
und enteituinment, two industiies
lucing swiltly clunging dynumics,
uie tle most uctive on ull lionts,
wletlei ielocusing innovution elloits
loi existing pioducts und seivices
oi loi entiiely new pioducts in new
models (see Figuie 9). But competitive
intensity continues to iise in viituully
ull industiies, puiticuluily us tle
Inteinet tiunsloims possibilities.
Innovution und competition is
incieusingly ciossing industiy
bounduiies, us Fiuncisco Gonzulez,
Cluiimun und CEO ol Bunco Bilbuo
Vizcuyu Aigentuiiu (BBVA) SA,
pointed out: ¨Oui lutuie competitois
will not be tiuditionul bunks but luige
teclnology compunies.¨
Tlose in industiies witl u listoiicul
dependence on innovution uie still
umong tle most likely to clunge
uppioucles. A tliid ol CEOs in
pluimuceuticul und lile sciences,
clemiculs und teclnology industiies
expect 'mujoi clunge' to R&D und
innovution cupucities in tleii
compunies us putent expiiutions und
low R&D pioductivity uie leuving
muny luige pluimuceuticuls witl
unceituin ievenue stieums.
Pluimuceuticuls businesses luve been
in tle loieliont in slilting some
ieseuicl iesouices to lustei-giowing
economies in Asiu. Oveiull R&D
spending in Asiu lus suipussed EU
levels, und Goldmun Sucls piedicts
tlut it is likely to oveituke US levels
beloie 2020, due in luige puit to tle
iupid puce ol giowtl in Clinu.
7
S PwC, ŁPioğtuble giowtl loi tle next 4 billionł (loitlcoming 2012).
6 PwC, ŁCuuglt in tle ciossğieł, u 2009 suivey ol 6S executives on innovution stiutegies und expectutions.
7 Douglus Gilmun, 'Tle new geogiuply ol globul innovution', Goldmun Sucls (Septembei 2010).
Juime Augusto Zobel de Ayulu
Cluiimun und CEO
Ayulu Coipoiution
We hud to reínvent the techno/ogy $
of pre-churgíng our phones to
uccommodute much smu//er
denomínutíons. We hud to come up
wíth over-the-uír techno/ogy thut
wou/d trunsfer funds us needed,
bríng the cost down und u//ow
peop/e to just huve the mínutes ín
theír phone thut they needed for $
u specíğc períod of tíme.
Micluel Tlumun
Cluiimun ol tle Bouid und CEO,
Owens Coining
Wełve been quíte successfu/ ut $
thut, so we uctuu//y be/íeve thut $
our deve/opíng-country strutegy $
ís gívíng us munufucturíng
techno/ogíes und ínsíghts thut we
cun then tuke buck to our exístíng,
bígger-scu/e fucí/ítíes ín deve/oped
murkets ín the Amerícus or $
Western Europe.
Rogei W. Feiguson, Ji
Piesident und CEO, TIAA-CREF
Certuín/y wełve seen generutíonu/
dífferences, purtícu/ur/y uround
socíu/ networkíng und the use of
techno/ogy, so there ure muny wuys
ín whích we ure /ísteníng to c/íents
und uduptíng our pructíces to
respond to the uníque needs of
dífferent groups.
1Stl Annuul Globul CEO Suivey 2012 )$
Wlile piimuiy R&D is still luigely
conducted in lome muikets, businesses
uie incieusingly slilting some
cupubilities to tleii new piioiity
muikets. Spending by loieign ulğliutes
ol US multinutionuls on R&D in loieign
countiies, loi exumple, iose to 1S.6%
ol totul multinutionul R&D spending
in 2009 liom 12.S% in 1999, uccoiding
to u iecent iepoit by tle US Buieuu
ol Economic Anulysis.
8
Tle slilt in
ieseuicl budgets is puitly muiket-
diiven us multinutionuls seek lootlolds
in lust-giowing economies, but is ulso u
iesult ol iising scientiğc und teclnology
cupubilities in loieign countiies. ¨It will
tuke us unotlei ğve to seven yeuis to
become us innovutive us compunies in
tle West,¨ suid Bubu Kulyuni, Cluiimun
und Munuging Diiectoi, Bluiut Foige
Ltd. ¨But we will get tleie loi suie.¨
Moie innovutions cieuted in emeiging
economies uie Ġowing tleii wuy buck
to otlei muikets, uccoiding to CEOs.
¨To me, one ol tle inteiesting tlings
tlut's clunged globully, puiticuluily in
oui compuny, is wleie innovution tukes
pluce und wleie it migiutes to,¨ suid
Biiun Dupeiieuult, Piesident und CEO
Muisl & McLennun Compunies Inc.
¨Clussicully, innovution iesided in
tle developed woild. We took ideus
und moved tlem into tle emeiging
woild. Tleie's now un equul clunce,
und muybe u gieutei clunce, tlut
innovutive ideus will come out ol tle
developing woild, wleie tle uction is,
wleie tle need to delivei moie loi less
is even moie leigltened. Toduy we'ie
getting us muny ideus out ol, suy, Clinu
und Indiu us we weie beloie out ol tle
US und Euiope.¨
Antonio Rios Amoiim
Cluiimun und CEO
Coiticeiiu Amoiim SGPS SA
lf vo/ume growth ís not goíng to $
be there, you need to huve vu/ue
growth, und ín order to huve vu/ue
growth you need to offer the murket
ínnovutíve so/utíons, products,
muteríu/s. So, we ure focusíng u $
/ot more on ínnovutíng ucross $
the bourd ín our compuny.
8 Kevin Buieloot und Ruymond Mutuloni, 'Opeiutions ol US Multinutionul Compunies in tle United Stutes und Abioud', Buieuu ol Economic Anulysis (Novembei 2011).
Figure 9: Many industries see significant pressure for both process innovations and radical innovation
Q: To what degree are you changing the emphasis of your company’s overall innovation portfolio in the following areas?
Responses of ‘significantly increase’.
0
0
10
20
30
40
50
10 20
New business models
Global average
C
o
s
t

r
e
d
u
c
t
i
o
n
s

t
o

e
x
i
s
t
i
n
g

p
r
o
c
e
s
s
e
s
30 40
19
20
18
17
16
15
14
13
12
7
4
5
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
2
3
6
11
10
9
8
Banking & Capital Markets
Business and Professional Services
Healthcare
Automotive
Transportation & Logistics
Metals
Industrial manufacturing
Retail
Consumer Goods
Hospitality & Leisure
Chemicals
Forestry, Paper & Packaging
Global
Construction/Engineering
Asset Management
Pharma & Life
Insurance
Technology
Communications
Entertainment & Media
Base: All respondents (29-245)
Source: PwC 15th Annual Global CEO Survey 2012
)% 1Stl Annuul Globul CEO Suivey 2012
CEOs iepoit tlut tley uie less likely
tlis yeui to locus on clunging
uppioucles to iisk munugement
tlun on otlei uieus ol piioiity,
liom stiutegies loi tulent to
oigunisutionul stiuctuie. Signiğcunt
delensive steps luve ulieudy been
tuken: bulunce sleets luve impioved
und cusl ieseives luve been built.
Enteipiise iisk is now moie liequently
discussed in bouidiooms.
Dimitiios Pupulexopoulos, CEO
ol TITAN Cement SA, Gieece,
summuiised tle clunges tuking pluce
in iisk uppioucles since 2008 witlin
muny businesses: ¨In tle pust, oui iisk
munugement und scenuiio plunning
wus bused on tle ussumptions
tlut conditions would clunge
inciementully. As events ol tle pust
couple ol yeuis luve slown, tlut lus
not been tle cuse. So we luve now
built into oui iisk munugement tle
possibility ol moie extieme conditions
occuiiing. And oui bouid ol diiectois
lus become mucl moie enguged in tle
enteipiise-iisk plunning piocess.¨
Tleiełs gieutei uwuieness ol speciğc
und evolving iisks witlin dilleient
muikets, und low locul iisks cun be
umpliğed into globul ones. Yet tle
speed witl wlicl iisk events unlold
÷ und tle extent to wlicl tleii impucts
on tle business spieud ucioss dilleient
iisk cutegoiies ÷ uppeui to be
esculuting. In tle pust 12 montls ulone,
S6% ol CEOs suid tleii businesses weie
ğnunciully impucted by tle soveieign
debt ciisis in Euiope, unotlei 29% cited
un impuct liom tle euitlquuke und
tsunumi in Jupun, und 21% cited tle
politicul upleuvul in tle Middle Eust.
Key opeiutionul moves luve ulieudy
impioved oigunisutionul iesilience.
Altei tle euitlquuke und tsunumi in
Jupun, loi exumple, CEOs bused in
Asiu Puciğc locused on impioving
tleii compuny's ubility to ieuct moie
quickly to u supply cluin slock.
9

Tley souglt new locutions loi tleii
opeiutions und ieinloiced buildings.
Clunges to supply logistics und
incieusing contingency pluns in
suppliei netwoiks weie ulso uieus tlut
business leudeis in u PwC suivey in
July lelt weie ciiticul to munuging
lutuie disiuptions.
10

J"*$#$"'0"),3)(#3D/#)>$*&+<,$3'*))
/'>)&"($3'/#)&$*5*
9 ŁAPEC: Tle lutuie iedeğnedł, PwC suivey ol business leudeis in 21 Asiu Puciğc economies (Novembei 2011).
10 'Post 3.11 Jupun: Globul Community's Peispective', PwC Globul CEO Pulse Suivey (July 2011).
Luizu Helenu Tiujuno
Inucio Rodiiguez
CEO, Muguzine Luizu SA
ln u g/obu/ísed wor/d, even /ocu/ísed
críses end up huvíng un ímpuct on
u// economíes. The 2008 crísís
tuught us thut.
Nuncy McKinstiy
CEO und Cluii ol tle Executive
Bouid, Wolteis Kluwei
There ís much more need for
scenurío p/unníng thun there wus u
few yeurs ugo. Much more need for
dushbourds thut seníor executíves
cun /ook ut und understund rísk.
Zsolt Heinudi
Cluiimun und CEO, MOL Plc
Ríght now, our Łhomeworkł ís to
íncreuse our ğtness. Whut do l meun
by thut? Essentíu//y, we must
muíntuín our cupucíty to respond
quíck/y ín un unpredíctub/e, ever-
'"&01-01$#08-+)03#029$
Ricluid O'Biien
Piesident und CEO
Newmont Mining Coipoiution
Lust yeurłs BP oí/ spí// ín the Gu/f of
Mexíco hus /ed muny compuníes to
re usk the questíon, ls enterpríse
rísk munugement one of those
unfortunute check-the-box uctívítíes
thut every compuny shou/d be doíng
becuuse peop/e te// us we shou/d, or
ís ít one thut we embruce?
1Stl Annuul Globul CEO Suivey 2012 )&
Compunies uie ulso leuining tlut
piepuiedness loi unceituinty is ubout
locusing on tle consequences ol
business disiuption. Tlis uppioucl
cun biing iisk discussions to u moie
stiutegic level. In oui expeiience, wlen
tle locus is on piepuiing to iespond to
consequences, discussions occui ucioss
people involved in stiutegy, opeiutions,
iisk munugement, ciisis munugement
und business continuity munugement.
By contiust, u locus on ussessing tle
likelilood ol puiticului iisks tends to
iemuin tleoieticul und tle domuin ol
iisk munugeis iutlei tlun tle lunctions
tlut will luve to iespond to disiuptions.
C#(*&-,3$)&-)#/-+$/#8#,3$/#(*&-,3$
/*+;+7$Tle iisk ol globul economic
volutility is u common tlieut, us is tle
continued unceituinty in muikets us u
iesult ol depiessed giowtl und iising
ğscul debts und değcits in muny
developed nutions: u concein cited by
ovei lull ol CEOs ieguidless ol wleie
tley uie bused. ¨We uie now into tle
louitl yeui ol tle economic ciisis und
none ol tle Euiopeun countiies luve
emeiged liom tle downtuin ÷ noi uie
tley conğdent tlut tley soon will.
Compuie tlut witl tle Asiun economic
ciisis tlut begun in 1997. By 2001 oi
2002, most Asiun countiies lud iepuid
tleii debts to tle IMF und Jupun,¨
suid Puilin Cluclottuwoin, Piesident
und CEO ol PTT Plc, Tluilund.
Compuiing low CEOs peiceive
otlei tlieuts to tleii business olleis
some insiglt into tle iisks tlut uie
top-ol-mind in dilleient iegions
(see Figuie 10 oveileul). A business
opeiuting globully lus to luve
opeiutionul stiutegies tlut encompuss
und iespond to tlese veiy dilleient iisks.
:HVWHUQ(XURSH$
Outlook loi tuxes, ğnunciul muiket
stubility. Tliee-quuiteis ol Westein
Euiopeun CEOs uie conceined ubout
instubility in cupitul muikets und
tliee-quuiteis uie conceined ubout tle
goveinment iesponse to ğscul ciises.
It nutuiully lollows, tlen, tlut 70%
believe tlut ensuiing stubility in tle
ğnunciul sectoi slould be u top piioiity
ol tleii goveinments. And stubility
includes culls loi consistency in new
iegulutions loi tle ğnunciul sectoi.
&HQWUDODQG(DVWHUQ(XURSH
Exclunge iutes, coiiuption. Tlese uie
two impoitunt tlieuts loi business
leudeis in CEE economies, witl CEOs
bused tleie mucl moie likely to iepoit
conceins tlun globul uveiuge. As witl
CEOs in Asiu Puciğc, conceins ieluted
to udjusting to iupidly clunging
consumei demunds uie moie pievulent.
D&/%"$=1#/*),<$$
Constiuined stute spending, skills
mismutcles. Like CEOs in Euiope,
muny in Noitl Ameiicu believe iising
public debts und değcits uie u key
tlieut, yet tley uie less conceined
ubout un incieusing tux buiden und
cupitul muiket instubility. Tley'ie ulso
umong tle leust conceined ubout
inĠution und piotectionism.
Rüdigei Giube
Cluiimun und CEO,
Deutscle Buln AG
The nuc/eur dísuster ín Fukushímu
und the po/ítícu/ dísturbunces ín
North Afrícu und the Mídd/e Eust
huve hud u dírect ímpuct on g/obu/
supp/y chuíns.
Jouko Kuivinen
CEO, Stoiu Enso Oyj
Wełre dep/oyíng our ussets und
operutíons ín u more Ġexíb/e
munner so thut we cun contro/ $
costs not on/y wíth regurd to
predíctub/e busíness cyc/es, but $
u/so to cope wíth unpredíctub/e
mucro-economíc events.
Tidjune Tlium
Gioup Cliel Executive, Piudentiul Plc
We certuín/y ínvest u /ot uround
regu/utíon. lf you /ook ut the
functíons of ğnunce, rísk und
comp/íunce, they ure our híghest
growth ureus. We ínvest u /ot ín
beeğng up our resources und our
cupubí/íty to deu/ wíth regu/utors $
ut the ríght /eve/, becuuse ít ís
strutegíc for us.
Lueicio Jose de Lucenu Cosentino
CEO, TOTVs SA
You cun no /onger unu/yse one
country ín íso/utíon; u// ure purt of
the sume context, so thut unythíng
thut huppens wíthín u gíven group
of countríes wí// uffect the who/e
wor/d ín some wuy.
Dimitiios Pupulexopoulos
CEO, TITAN Cement SA
Be/ow the surfuce of the unfo/díng
economíc crísís, there remuíns u
deep socíety-wíde concern uround
the íssue of sustuínubí/íty und the
envíronment. And thut ís not $
goíng uwuy.
)' 1Stl Annuul Globul CEO Suivey 2012
$VLD3DFLğF$
E'//#-)@$8&3,%*3*%@F$#-#/(@$)&+%+7
Cuiiency Ġuctuutions uie umong tle
top economic und policy tlieuts loi
CEOs in Asiu, und CEOs tleie uie
moie conceined ubout inĠution tlun
most otleis. Skills sloituges, iising
tux buidens und liglei eneigy costs
loom us potentiul constiuints on
expunsion pluns.
G,%*-$=1#/*),<$$
Undeideveloped inliustiuctuies.
Inliustiuctuie looms luigei loi
CEOs in Lutin Ameiicu us u giowtl
tlieut und CEOs nutuiully cull loi
goveinments to uddiess it. Coiiuption
und ovei-iegulution stund out us
potentiul buiiieis to business.
>*..3#$H,+%$,-.$=0/*),<$$
Skills sloituges und coiiuption.
Tle uvuilubility ol key skills stunds out
us un ucute concein in tle Middle Eust,
wlile CEOs in Aliicu ÷ tle most
optimistic iegion in teims ol tleii
giowtl piospects in 2012 ÷ luve umong
tle liglest concein levels ucioss u
iunge ol potentiul tlieuts, notubly
ovei-iegulution und olğciul coiiuption.
Douglus R. Obeilelmun
Cluiimun und CEO, Cuteipillui Inc.
l ğnd my tíme íncreusíng/y uímed $
ut government po/ícy mukers und
po/ícy ítse/f, whích ís u sígn of the
tímes. l heur thís from my peer $
CEOs u// over the wor/d. Toduy,
government po/ícy seems to be
wrupped so much more uround
busíness thun ítłs ever been, und $
we u// need to stund up und be
heurd. We huve to muke sure
everybody understunds whut we
need to do to udd jobs, to grow und
to be ínternutíonu//y competítíve.
Figure 10: Global economic uncertainty remains the top threat to growth prospects
Q: How concerned are you about the following potential threats to your business growth prospects?
North America
Uncertain or volatile
economic growth
Public deficits
Over-regulation
Unstable capital
markets
Exchange rate
volatility
Protectionism
Western Europe
Uncertain or volatile
economic growth
Public deficits
Unstable capital
markets
Shift in consumers
Over-regulation
Exchange rate
volatility
Asia Pacific
Uncertain or volatile
economic growth
Exchange rate
volatility
Unstable capital
markets
Public deficits
Over-regulation
Shift in consumers
Inflation
Latin America
Uncertain or volatile
economic growth
Over-regulation
Exchange rate
volatility
Public deficits
Bribery and
corruption
Unstable capital
markets
Protectionism
CEE
Uncertain or volatile
economic growth
Exchange rate
volatility
Unstable capital
markets
Public deficits
Over-regulation
Bribery and
corruption
Middle East/Africa
Uncertain or volatile
economic growth
Public deficits
Over-regulation
Bribery and
corruption
Unstable capital
markets
Inflation
Business threats Denotes equal ranking Economic and policy threats
Exchange rate
volatility
Availability of
key skills
Shift in consumers
Increasing tax
burden
New market
entrants
Increasing tax
burden
Inability to
finance growth
Availability of
key skills
Energy costs
Increasing tax
burden
Availability of
key skills
Energy costs
Increasing tax
burden
Availability of
key skills
Inadequacy of
basic infrastructure
Increasing tax
burden
Shift in consumers
Availability of
key skills
Energy costs
Availability of
key skills
Increasing tax
burden
Shift in consumers
Energy costs
Base: North America (236); Western Europe (291); Asia Pacific (440); Latin America (150); CEE (88); Middle East/Africa (53)
Note: Rank of top threats, by % of somewhat or extremely concerned
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 )(
Opportunítíes und rísks fur from home
As CEOs seek giowtl outside lumiliui muikets, tley must udupt tleii ğimsł
iisk piuctices. Economic, sociul und politicul conditions vuiy by countiy,
und u moie subtle undeistunding ol low tlese luctois will slupe tle
business enviionment is ciiticul to spotting new oppoitunities und
munuging unexpected iisks.
Muny politicul, iegulutoiy und tux iisks uie piedictuble. In developing
countiies, muiket-moving decisions uie olten mude by goveinment olğciuls
witl identiğuble politicul motivutions oi known limitutions on tleii
uutloiity. One Euiopeun ğim opeiuting in Lutin Ameiicu ucted on un euily
wuining ol politicul deteiioiution und ieputiiuted tle ğimłs equity, slilting
to locul ğnuncing piioi to cuiiency devuluution. In u win/win outcome, tle
move ullowed tle compuny to uvoid losses wlile muintuining opeiutions in
tle countiy.
Even unpiedictuble iisks cun be munuged. We cunnot know wlen u nutuiul
disustei oi sociul upleuvul will spiing u suipiise, but we cun piedict wlicl
muikets uie most vulneiuble to sucl slocks ÷ und low decision-mukeis uie
likely to iespond wlen tley lit. Situutionul uwuieness und plunning cun
ensuie tlut tleii impuct on bulunce sleets, supply cluins und muiket
demund is unticiputed.
As tley seek giowtl in new muikets, muny executives locus on muiket-
entiy iisks, but undeiestimute tle iisks tlut come witl sustuined muiket
piesence ŋ ğguiing tlut tley luve good people on tle giound und u
good luy ol tle lund. But just us witl tle politicul, economic und sociul
enviionments, tle business enviionment lus clunged iupidly in developed
muikets. Business leudeis must constuntly ietuin to tle lundumentul
question: ŃHow must my business piuctices evolve to pioğt liom tle toiient
ol clunge undeiwuy eveiywleie uiound tle woild?¨
Tle luigest emeiging muikets ÷ notubly Biuzil, Russiu, Indiu und Clinu
÷ illustiute tlis piinciple. Muny luige multinutionuls now ieguid u piesence
in tlese countiies us u competitive impeiutive. Yet, us we luve seen
iecently, tlieuts to oi clunges in politicul leudeislip, ievelutions ol
coiiuption und olğciul mulleusunce, und peiceived economic tlieuts
liom ubioud cun luve piolound downside impucts on tle locul business
enviionment. Euily moveis und tlose wlo undeistund tle slilting teiiuin
in tlese countiies will luve substuntiul udvuntuges, und unpleusunt
suipiises uwuit tlose wlo entei lute oi witlout piepuiution loi tle toiient
ol clunge undeiwuy in tlese muikets. Foi exumple, one ğim wutcling tle
opening ol u muiket loi its seivices ultei tle 200S Clinese uccession to
tle WTO bouglt out its joint-ventuie puitnei und quickly estublisled
itsell in inteiioi cities once closed to loieign ğims. Tle investment gieutly
incieused its coipoiute pioğle umong locul und centiul goveinment
stukeloldeis und spieud tle biund nume quickly in u luciutive muiket.
In contiust, one bunk's lute uiiivul in Lutin Ameiicu iesulted in u luiled
uttempt to estublisl u dominunt piesence in u muiket wleie iivuls weie
ulieudy in tle midst ol consoliduting tle muiket.
Wlut's tiue loi iisk is tiue loi oppoitunity. As tleii commeiciul iivuls
locus on yesteiduyłs bonunzu, business decision-mukeis cun use u ieğned
undeistunding ol politicul, sociul und economic tiends to spot tle giowtl
oppoitunities ol tomoiiow.
Tom Albunese
Cliel Executive, Rio Tinto
lf wełre ut uny poínt ín tíme
sufferíng from un uncertuínty of
whut our tuxes or royu/tíes ure
goíng to be, or there ís u chunge ín
the ínvestment condítíons of the
country, ít hus the effect of creutíng
more rísk. Thut íncreuses our $
cost of cupítu/, und hus the effect $
of reducíng the umount of re-
ínvestment, whích one duy míght
huve produced more tuxes for those
countríes. So ín the /onger term they
míght ğnd thut theyłre not seeíng
the re-ínvestment, nor the jobs, nor
the economíc beneğts they wou/d
huve seen ín the /ong term.
Hussein Huclem
CEO Middle Eust und Aliicu, Aiumex
l wus ín Ugundu three months buck
when there wus u cíví/ dísturbunce,
but our worry ís corruptíon. l wunt
to muke sure thut we operute ín un
#08-+)03#02$7"#+#$7#$'&0$,)$
busíness wíthout puyíng unybody
under the tub/e.
!* 1Stl Annuul Globul CEO Suivey 2012
A4"),/#"',)04/##"'(")
Tleoieticully, ğnding u good cundidute
to ğll u position slould now be u veiy
stiuigltloiwuid exeicise. Tleie luve
nevei been us muny educuted people
in tle woild, noi lus it evei been us
simple loi employeis to tup tlis vust
pool online. Higlly skilled tulent is
ulso liglly mobile; but just in cuse,
netwoiking udvunces ulso meun tlut
muny moie tusks cun be lundled
iemotely oi outsouiced.
Tle ieulity is lui dilleient. A Clinese
uutomukei uttends job luiis in
Geimuny, even tlougl Clinu pioduces
luige numbeis ol giuduute engineeis
eucl yeui. Higl jobless iutes peisist in
tle US und Euiope, dispiopoitionutely
umong tle young, even us businesses
liet tlut tley cunnot uttiuct tle
digitully udept 'Millenniul' geneiution
to puisue cuieeis in tleii industiies.
Too muny well-educuted citizens ol tle
Middle Eust und elsewleie uie not in
tle woikloice ut ull. ¨Beloie, people
looked loi jobs. Now, compunies look
loi tulent,¨ suid Eidul Kuiumeicun,
Piesident und CEO ol Eczucibuąi
Gioup A S.
Tlis is tle tulent ciuncl. It's u complex
und liustiuting clullenge und it's being
lelt woildwide. To give u meusuie ol
tle scule ol tle pioblem: moie CEOs
uie clunging tulent munugement
stiutegies tlun, loi exumple, udjusting
uppioucles to iisk (see Figuie 4 on
puge 7): 23% expect 'mujoi clunge'
to tle wuy tley munuge tleii tulent.
And skills sloituges uie seen us u top
tlieut to business expunsion.
Tulent sloituges und mismutcles uie
impucting pioğtubility now. One in loui
CEOs suid tley weie unuble to puisue
u muiket oppoitunity oi luve lud to
cuncel oi deluy u stiutegic initiutive
becuuse ol tulent (see Figuie 11).
One in tliee is conceined tlut skills
sloituges impucted tleii compuny's
ubility to innovute ellectively.
¨Close to 1S peicent ol eneigy-ieluted
investments uiound tle woild luil oi
uie lost becuuse u suituble woikloice
is not uvuiluble,¨ suid Zsolt Heinudi,
Cluiimun und CEO ol MOL Plc.
Tleie uie clullenges in liiing ucioss
most industiies, us well us in ietention
in some muikets und industiies,
us businesses compete loi liglly
tulented people. CEOs uie tuking
muny uppioucles to uddiess tle
sloitlulls, us Andiey Kostin, Piesident
und Cluiimun ol tle Munugement
Bouid ol JSC VTB Bunk, put it:
¨In some countiies we luve constunt
sloituges ol iisk munugeis oi ietuil
expeits, loi exumple, oi locul ğnunce
expeits witl ielevunt expeitise.
Sometimes tle solution is to ielocute
people liom otlei olğces.ń
Tom Albunese
Cliel Executive, Rio Tinto
Peop/e of my generutíon wí// be
retíríng over the next 10 yeurs
/euvíng u pretty shu//ow poo/ of
peop/e; then everyone wí// be
strugg/íng und competíng for u
/ímíted group of experíenced míníng
professíonu/s. But we do ğnd thut
we cun go outsíde our sector, for
exump/e, for mechunícu/ engíneers
or peop/e ín the uuto sector who ure
good wíth índustríu/ enterpríses.
Muiijn Dekkeis
Cluiimun, Buyei AG
But whut ís ínterestíng und whut ís
chungíng ís thut umong Western
compuníes, the ubí/íty to híre, deve/op
und retuín tu/ent ín the deve/opíng
economíes hus become u mujor poínt
of competítíve dífferentíutíon.
Figure 11: Talent constraints have impacted costs – but also factor in lost opportunities
Q: Have talent constraints impacted your company’s growth and profitability over the past 12 months in the following ways?
Our talent-related expenses rose more than expected
We weren’t able to innovate effectively
We were unable to pursue a market opportunity
We cancelled or delayed a key strategic initiative
We couldn’t achieve growth forecasts in overseas markets
We couldn’t achieve growth forecasts in the country where we are based
Our production and/or service delivery quality standards fell
%
43
31
29
24
24
24
21
Base: All respondents (1,258)
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 !)
A minoiity ol CEOs expect to
undeituke deep iestiuctuiing
meusuies speciğcully to ğll tle tulent
gup. As tley considei low to build tle
lutuie ol tleii woikloice, u tliid oi
less expect to muke diumutic clunges,
sucl us muking un ucquisition to
secuie needed tulent, seeking
puitneislips to get uccess to skills, oi
moving opeiutions to moie tulent-iicl
uieus. Sligltly moie CEOs (38%)
expect to muke signiğcunt investments
in teclnology to ciicumvent sloituges.
I*/*-($%,3#-%7$CEOs ucioss ull
industiies suy it's become moie
dilğcult to liie, but tle clullenges uie
ucute in knowledge industiies sucl us
pluimuceuticuls und lile sciences, und
teclnology, und in leuvy industiies
sucl us industiiul munuluctuiing und
uutomotive (see Figuie 12). Tle need
loi teclnicully skilled people to
munuge tle incieusing soplisticution
in pioduction is stiong, und tle giowtl
in demund loi piolessionuls in
munuluctuiing is piojected to be ovei
4% u yeui ucioss ull economies und to
peuk ut ovei 10% in developing
economies in 2020.
11

Even industiies sucl us bunking tlut
luve ietiencled woikeis in luige
numbeis uie still stiuggling to get tle
iiglt people. Developed muiket bunks
uie in competition witl one unotlei but
ulso witl incieusingly umbitious und
well-cupitulised locul competitois in
lustei-giowing economies.
12
Tleie uie
ulso sloituges ol speciğc ğnunciul
seivices skills in tlese economies,
loi exumple, piivute weultl bunkeis
oi uctuuiies. Almost twice us muny
bunking CEOs (48%) plun to expund
woikloices tlun to cut (26%) in 2012
(see Figuie 13 oveileul).
>,;*-($%,3#-%$+%/,%#(*)7$CEOs uie
deteimined to be moie stiutegic in tle
wuy tley munuge tleii woikloice
toduy und plun loi lutuie needs. Up to
now, un ussumption lus leld tlut tle
muiket unulysis element ol u stiutegic
plun is puiumount, und low u business
'iesouices up' to meet tle plun is
sometling tlut's woiked out lutei.
Now, leuding businesses uie looking
beyond tle next budget iound to plun
tulent needs. A longei-teim stiutegic
view is needed, il tley wunt to close
tle gup toduy und mup low tulent
needs will clunge.
Andy Gieen
CEO, Logicu Plc
Wełve değníte/y grown /ess fust $
thun we wou/d huve /íked to ín $
some p/uces, purtícu/ur/y ín some $
of these new skí// ureus ŋ busíness
ínte//ígence or future lT skí//s ŋ
becuuse we huvenłt been ub/e to
recruít und uttruct und truín
enough peop/e fust enough.
Muiiuno Boscl
CEO, Adecougio SA
Adecougrołs greutest chu//enge for
growth ís recruítíng the ríght peop/e
to munuge operutíons.
Ricluid O'Biien
Piesident und CEO
Newmont Mining Coipoiution
Wełre sturtíng to uttruct some
technícu//y ínc/íned peop/e out of the
schoo/s toduy, but there ure fewer
míníng schoo/s und míníng engíneers
ŋ ut the sume tíme therełs more
,#3&0,$*)+$2"#39$
11 Woild Economic Foium, 'Globul Tulent Risk' (2011).
12 PwC, ŁSecuiing tle tulent to succeed: Muking tle most ol inteinutionul mobility in ğnunciul seivicesł (Novembei 2011).
Figure 12: Different industries, different requirements – but skills gaps remain
Q: In general, has it become more difficult or less difficult to hire workers in your industry, or is it unchanged?
Global
Consumer goods
Automotive
Healthcare
Industrial manufacturing
Technology
Insurance
Pharamceuticals & Life sciences
%
Less difficult More difficult
Sectors above
the global
average in % of
CEOs responding
‘More difficult’
12 43
11 44
8 46
9 47
14 47
12 48
10 49
6 51
-16 37
-21 34
-19 28
Base: All respondents (29-245)
Note: Responses of ‘unchanged’ not depicted.
Source: PwC 15th Annual Global CEO Survey 2012
!! 1Stl Annuul Globul CEO Suivey 2012
As puit ol tlis elloit, moie CEOs uie
now integiuting HR witl business
plunning ut tle liglest levels ol tle
compuny: 79% ol CEOs suy tlut tle
cliel lumun iesouices olğcei, oi
equivulent, is one ol tleii diiect iepoits
(most luve ten oi lewei diiect iepoits).
Tley uie ulso seeking u bettei
undeistunding ol tle scule und
ellectiveness ol tleii investments in
tulent. Pioductivity und luboui cost
iemuin impoitunt meusuiements;
tlese uie tle tools investois, lendeis
und businesses use to benclmuik
piogiess (oi luck ol it). Tley uie luigely
stunduidised in muny industiies, und
tlus eusy to implement. Yet loi muny
CEOs, tlose tools uien't enougl
(see Figuie 14 opposite).
Tley uie veiy good ut telling u CEO
low tle business is peiloiming
toduy ielutive to its peeis, but not ut
indicuting wletlei tle oigunisution
is investing enougl in employees to
geneiute lutuie giowtl.
Sucl meusuiements cunnot isolute
skills gups und stiuggle to identily
tle pivotul jobs tlut diive exponentiul
vulue; tley do not meusuie employee
engugement oi teum peiloimunce,
botl ol wlicl uie so ciiticul loi
investments to lostei innovution to
beui liuit. Tlese meusuiements uie
mucl luidei to muke, wlicl is one
ieuson wly tley've been neglected
und wly toduy, so muny CEOs uie
liustiuted witl tle issue ol tulent.
Fiuncisco Gonzulez
Cluiimun und CEO, Bunco Bilbuo
Vizcuyu Aigentuiiu (BBVA) SA
The ídeu thut bunks need on/y
conventíonu/ peop/e no /onger ho/ds
true. lf we reu//y wunt to compete $
ín the future, we need to updute the
quu/íğcutíons of our peop/e und
thutłs where tu/ent comes ín.
Bubu Kulyuni
Cluiimun und Munuging Diiectoi,
Bluiut Foige Ltd
Tu/ent ís the most strutegíc íssue for $
u country /íke lndíu. The country $
ís tremendous/y short on tu/ent.
Attrítíon rutes ure ín doub/e dígíts.
There ís u gup between whut comes
out of technícu/ ínstítutes und whut
the índustry needs.
Figure 13: Half of CEOs expect to raise their headcount in 2012
Q: What do you expect to happen to headcount in your organisation globally over the next 12 months?
Healthcare
Business services
Technology
Communications
Chemicals
Automotive
Global
Insurance
Entertainment & Media
Industrial manufacturing
Banking and Capital markets
Asset management
Consumer goods
Construction/Engineering
Retail
Pharmaceuticals & Life sciences
Transportation/Logistics
Metals
Hospitality & Leisure
Forestry, Paper & Packaging
Increase by less than 5% Increase by 5-8% Increase by more than 8%
Decrease by less than 5% Decrease by 5-8% Decrease by more than 8%
%
6 6 9 31 38
5 6 18 17 23
11 2 4 19 18 20
7 14 19 12 24
1 11 10 11 34
3 4 7 10 26 16
22 15
3 4 11 14
14
23
3 10 3 12 25 13
5 4 10 20 24 6
7 7 15 11 25 8
12 3 6 3 18 19
6 5 6 13 13 21
4 4 15 9 18 20
13 4 4 19 17 10
4 17 3 11 13 22
5 12 1 11 12 20
1 5 12 12 10 17
15 5 3 5 13 18
3 7 17 14 3 17
10 18 8 8 14 10

Base: All respondents (29-245)
Note: Responses of ‘stay the same’ not depicted.
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 !"
The future of emp/oyee engugement
Employee engugement unulysis cun give business leudeis u cleui link between
engugement und impioved peiloimunce meusuies sucl us ietention und
discietionuiy elloit. Tle point is to ulign stiutegy und engugement ÷ und to
tlus undeistund tle oigunisutionłs cupucity to geneiute tle beneğts deiived
liom engugement in wuys tlut diiectly impuct deliveiy ol tle business plun.
A study conducted by tle Coipoiute Executive Bouid lound tlut tle
employees wlo weie most committed to tleii oigunisutions guve S7%
moie elloit und weie 87% less likely to iesign tlun employees wlo considei
tlemselves disenguged.
13
Yet duiing tle iecent downtuin, engugement
levels umong top peiloimeis lell moie sluiply tlun loi woikeis oveiull,
PwC lus lound.
14
Tlut's wly loiwuid-looking businesses uie going luitlei. Tley'ie coupling
u cleui view ol tle pivotul ioles witlin tleii business ÷ tle ioles tlut cieute
(oi destioy) dispiopoitionute business vulue ÷ und upplying dutu mining
und piedictive modelling to guin insiglt into ietention, ieciuitment oi
pioductivity. Foi exumple:
ō u ietention scoie loi eucl employee, wlicl meusuies tle piobubility tlut
un employee will leuve in tle next yeui;
ō use ol engugement studies to identily buiiieis to ligl peiloimunce
witlin speciğc gioups ol employees, us well us tle tungible impiovements
tlut cun diive botl engugement und business peiloimunce; oi
ō u locus on tle diiect muiket-lucing impuct employee engugement lus
on meusuies ol business peiloimunce sucl us customei sutisluction oi
pioduct quulity.
13 Coipoiute Executive Bouid, 'Tle Role ol Employee Engugement in tle Retuin to Giowtl', Bloombeig Businessweek (August 2010).
14 PwC Suiutogu Globul Suivey (2011).
Lueicio Jose de Lucenu Cosentino,
CEO, TOTVs SA
lf we donłt work now on truíníng
peop/e, u shortuge of professíonu/s
cou/d uffect growth.
Micluel Wlite,
Cluiimun, Piesident und CEO,
Tle DIRECTV Gioup Inc.
Letłs fuce ít. There ure 80 mí//íon
Buby Boomers who ure goíng to retíre
over the next ğve to seven yeurs, und
theyłre goíng to be rep/uced by 40
mí//íon Gen Xers. Thutłs two to one,
so youłd better be deve/opíng your
next generutíon now íf youłre goíng $
to be reudy for thut trunsítíon.
Rogei W. Feiguson, Ji
Piesident und CEO, TIAA-CREF
We huve trudítíonu//y híred peop/e ut
míd cureer, but over the /ust few yeurs
wełve u/so reínvígoruted our co//ege
cumpus recruítíng.
Figure 14: A minority of CEOs get comprehensive reports on their workforce
Q: When making decisions, how important is it to have information on each of the following talent-related areas?
For those areas that are important to you, how adequate is the information that you currently receive?
% of CEOs who believe the relevant information is important or very important
P
e
r
c
e
n
t
a
g
e

o
f

C
E
O
s
100
80
60
40
20
0
Costs of
employee
turnover
Return on
investment on
human capital
Assessments
of internal
advancement
Labour
costs
Employees’
views and
needs
Staff
productivity
Information Gap:
CEOs believe
information is
important but
don’t receive
comprehensive
reports
Do not receive information
Not adequate
Adequate but would like more
Information received is comprehensive
Base: All respondents (1,258)
Source: PwC 15th Annual Global CEO Survey 2012
!# 1Stl Annuul Globul CEO Suivey 2012
'HYHORSLQJWDOHQWFiequent job-
lopping is endemic to muny muikets,
ut ull levels ol tle oigunisution. A 2010
suivey ol ovei 2,200 mid- to senioi-
level munugeis in muinlund Clinu
lound tlut two-tliids lud ieceived ut
leust one competing job ollei in tle lust
18 montls, und tlut neuily lull (46%)
lud moved to u new iole witl u moie
tlun 30% incieuse in compensution.
1S
Employee loyulty to tleii employei
is clunging eveiywleie. Only 18%
ol Millenniuls in u globul suivey ol
new giuduutes suid tley intended
to stuy witl tleii cuiient employei,
loi exumple.
16
Tlis is u tiend muny CEOs would like
to countei. Two-tliids suy it's moie
likely tlut tulent will come liom
piomotions witlin tleii compunies
ovei tle next tliee yeuis. Wlile
outsideis biing muny beneğts, tle loss
in pioductivity und time wlen u
vuluuble employee leuves, us well us
tle expense ieluted to ietiuining, uie
beginning to be bettei uppieciuted:
21% suy tle inloimution tley ieceive
on tle cost ol employee tuinovei to
tleii oigunisutions is not udequute und
47% ieceive some inloimution but
wunt moie. ¨We need to giow oui own
tulent,¨ suid Nuncy McKinstiy, Cluii ol
tle Executive Bouid und CEO ol
Wolteis Kluwei. ŃItłs veiy dilğcult olten
to tuke people liom outside to come
into tle compuny und luve tlem be
pioductive in u sloit peiiod ol time.¨
To develop tulent bettei, lowevei,
compunies will need to undeistund
tlut wlut woiks in one muiket miglt
not woik in unotlei. Mentoiing
piogiummes, loi exumple, uie popului
in some countiies but luil in otleis,
becuuse ol tle wuy coucling is
ieceived in dilleient cultuies. Even
compunies tlut uie well iespected loi
tleii development piuctices uie
ietlinking globul tulent stiutegies und
udupting tlem loi dilleient muikets.
I&3.*-($%"#$&/(,-*+,%*&-$%&(#%"#/7$
Higl-potentiul middle munugeis uie
tle employees moie CEOs ucioss ull
industiies und iegions leui losing tle
most (see Figuie 1S). Tlese
opeiutionul munugeis uie olten tle
closest to clunging customei demunds
und tle ones cluiged witl executing
tle stiutegic diiection. Tlis is one
ieuson wly loimul succession plunning
in some compunies is stuiting to go
deepei into tle oigunisution. Elloits to
identily tle tulented munugeis euiliei
in tleii cuieeis, und to speciğcully
devote development iesouices to tlem,
uie tuking pluce in moie oigunisutions.
1S MRI Clinu Gioup Tulent Enviionment Index.
16 'Millenniuls ut Woik: Sluping tle woikpluce', PwC suivey ol ovei 4,300 giuduutes uged 31 oi undei (Decembei 2011).
Juime Augusto Zobel de Ayulu
Cluiimun und CEO
Ayulu Coipoiution
Wełre ínvestíng much more now $
ín retruíníng peop/e. The wor/d ís
chungíng so quíck/y thut ítłs just $
not enough to go to schoo/ once.
Rüdigei Giube, Cluiimun und CEO,
Deutscle Buln AG
We unnuu//y truín ubout 10,000
upprentíces ín more thun 25
vocutíonu/ skí// ureus.
Yoslio Kono, Piesident und CEO
Tle Noiinclukin Bunk
We huve now rudícu//y chunged thut
by deve/opíng u g/obu/ HR truíníng
process to screen potentíu/
cundídutes und send them ubroud $
to guín work experíence for u yeur,
begínníng ín 2012.
Rolunu Rozlun
CEO, ASTRO Muluysiu Holdings
Ðíversíty ís purt und purce/ of
everythíng thut we do becuuse to
succeed, ASTROłs workforce must
dírect/y reĠect íts murket p/uce.
Figure 15: Recruiting and retaining high-potential middle managers is the biggest concern for CEOs
Q: With which of the following groups do you currently face the greatest challenges with regard to recruitment and retention?
Respondents were able to choose all that applied.
High-potential middle managers
Skilled production workers
Younger workers
Senior management team
Overseas unit heads
%
Emerging Markets Developed Markets
55
50
35
31
32
30
35
21
13
21
Base: All respondents (621; 637)
Source: PwC 15th Annual Global CEO Survey 2012
1Stl Annuul Globul CEO Suivey 2012 !$
Tlose lutuie leudeis will ulso need to
ieĠect tle woild in wlicl tley opeiute.
¨Tle evolution ol senioi leudeislip
teums is going to continue. I tlink
people will luve to be moie globul in
tleii peispective. Tley will luve to
undeistund tle inteiconnectedness
uiound tle woild. Tlut's going to be u
veiy impoitunt element,¨ suid F Willium
McNubb III, Cluiimun, Piesident und
CEO ol Tle Vunguuid Gioup Inc.
>&8*-($%,3#-%7$Acioss ull industiies,
moie CEOs would iutlei luve locul
leudeislip iun locul business units.
Toduy, 29% ol senioi munugeis uie
tiunsleiied liom tleii leudquuiteis
countiy to newei muikets; in un ideul
woild, only 18% ol CEOs suid tley
would continue to move tleii senioi
leudeis liom leudquuiteis. Tlis is
becoming incieusingly luid to uclieve
in lust-giowing economies. Foieign
multinutionuls iemuin desiiuble
employeis, but tle best people in Indiu
und Clinu, umong otlei economies,
luve muny moie options witl domestic
multinutionuls toduy. Tlese uie gioups
wlicl ollei oppoitunities to iun
giowing, globul businesses und wlicl
cun incieusingly mutcl Westein
compensution puckuges. In 2007, 41%
ol liglly skilled Clinese piolessionuls
pieleiied woiking loi u Westein
multinutionul, wlile 9% pieleiied u
job witl u domestic ğim. By tle second
quuitei ol 2010, tle pieleience loi
employment by u multinutionul lud
iisen to 44%, but tle pieleience loi
Clinese employeis lud jumped to
28%, uccoiding to tle Coipoiute
Executive Bouid.
17
Wlile S3% ol CEOs expect to move
expeiienced people liom tle lome
muiket to newei muikets to ğll skills
gups (see Figuie 16), ieveise tiunsleis,
involving moving top peiloimeis in
emeiging muikets into developed
muikets loi u sloit peiiod ol time to
become 'ciedentiulised', cun ulso be
ellective ietention und development
meusuies. And businesses uie muking
gieutei use ol sloit-teim ussignments
to uddiess skills sloituges in ligl-
piioiity muikets, und costs ieluted to
long-teim ussignments. Tlese cun be
extended business tiuvel oi Ġexible
commutei uiiungements, olten
intiu-iegionul, wlicl uddiess
situutions wleie un employee oi
cundidute is ieluctunt to move.
17 'Tle Buttle loi Clinu's Tulent', unulysis liom tle Coipoiute Leudeislip Council, Huivuid Business Review (Muicl 2011).
Duniel S. Glusei
Gioup Piesident und COO,
Muisl & McLennun Compunies Inc.
Peop/e wunt to huve un ímpuct. They
wunt to be /ístened to, no mutter the
síze of the compuny they work for.
Jouko Kuivinen
CEO, Stoiu Enso Oyj
lt ísnłt ubout young versus o/d, or
the deve/opíng wor/d versus the
deve/oped wor/d. The most crítícu/
se/ectíon críteríu thut we used ín
puttíng together our teum of juníor
munugers together wus to muxímíse
díversíty of thought.
Muiijn Dekkeis
Cluiimun, Buyei AG
We try to uvoíd overseus
ussígnments just to ğ// u gup, but
sometímes you just cunłt uvoíd ít.
Figure 16: CEOs are more focused on recruiting local talent and developing and promoting from within
Q: With regards to plans for your global workforce over the next three years which of the following statements do you feel is more likely to occur?
We plan to move experienced employees from our home
market to newer markets to circumvent skills shortages
We plan to develop and promote most of
our talent from within the company
We plan to primarily recruit local talent
wherever we have market needs
We plan to move experienced employees from newer
markets to home markets to circumvent skills shortages
We plan to recruit more experienced talent
from outside the company
We plan to move more talent across borders
to fill market needs
%
Agree with statement
Don’t know
Agree with statement
53 16
67 24
70 19
31%
8%
11%
Base: All respondents (1,258)
Source: PwC 15th Annual Global CEO Survey 2012
!% 1Stl Annuul Globul CEO Suivey 2012
lnvestíng ín workforce deve/opment
Skills constiuints uie not likely to go uwuy soon. As economies evolve,
woikloices need to evolve us well. It's un issue loi CEOs, wlo iecognise
tlut tulent is vitul to competitiveness ut u time wlen business success ielies
incieusingly on knowledge cupitul und innovution cupucity. One-tliid ol
CEOs suw ieduced innovution us u consequence ol tulent constiuints.
It's ulso un issue loi goveinments, wlicl incieusingly see tle need to
compete on tulent. Indiu und Clinu luve invested leuvily to upgiude skills
und widen uccess to educution, und uie moie uctively cultivuting tleii
substuntiul diuspoiu ol students und entiepieneuis to encouiuge tleii
ietuin. Singupoie und Muluysiu uie tuking compielensive, long-teim
uppioucles to uttiuct liglly skilled loieigneis to enlunce tleii economies;
tle UK is ieloiming its R&D tux ciedit to incentivise innovutive businesses
to stuy. In sloit, policy mukeis uie seeing tle ellects ol tulent mobility on
economic competitiveness und, us u iesult, moie countiies uie ucting to
uttiuct und ietuin tulent.
18
Tlis is likely to encouiuge even moie globul tulent
mobility, wlicl will, in tuin, impuct business tulent munugement stiutegies.
Yet wlile immigiution und tux ieloim will biidge tle skills gup to some
extent, ovei tle long teim, multinutionuls will need to move liom ud loc
solutions und cieute lubs to seed und develop tle skills und munugeiiul
tulent tley need. Tlut's wly leuding compunies tuke tle long view und
uie puitneiing witl tleii goveinments und loundutions to invest in
woikloice development.
Most CEOs believe business lus u iole in upgiuding und losteiing skills
outside tleii own compunies und 78% suy tley uie muking diiect
investments in woikloice development. Just ovei lull suy tley uie investing
in loimul educution systems und udult oi vocutionul tiuining piogiummes.
Tlis is puit ol u widei tiend we luve
obseived ol businesses ieucling buck
luitlei into tle tulent pool und seeking
to 'giow tleii own' witl u piolileiution
ol employei-led univeisities. Regions
wleie tle needs uie gieutest toduy luve
seen moie employeis tuking tle leud
on solutions to skills gups. Muny moie
compunies, sucl us Inlosys in Indiu, uie
putting employees tliougl intensive
tiuining on tleii own cumpuses.
Not ull countiies uie keen on tlis
tiend, witl some uiguing tlut diiect
involvement ol business in educution
iesults in sloit-teimism iutlei tlun
estublisling u bioudei educution buse
to equip people bettei in tle longei
teim. Howevei, tleie uie incieusing
exumples ol public-piivute
puitneislips involving u moie uctive,
stiutegic iole being pluyed by business
in educution. Tuke P-Tecl, u six-yeui
ligl sclool in luige puit cieuted by tle
IBM Inteinutionul Foundution, wleie
students cun euin u diplomu und un
ussociute's degiee in u computei
science-ieluted ğeld und luve u ğist
ciuck ut u job witl IBM.
19

18 Tle numbei ol countiies looking to 'systemuticully encouiuge tulent mobility' iose liom just u lew in 2001÷01 to neuily two dozen in 2008, uccoiding to Pupudemtiiou et ul.,
'Tulent in tle 21st Centuiy Economy' Migiution Policy Institute (Novembei 2008).
19 Foi moie on goveinment und business puitneislips in educution und elsewleie, see 'Tuking iesponsibility: Goveinment und tle Globul CEO', PwC (loitlcoming 2012).
Douglus R. Obeilelmun
Cluiimun und CEO, Cuteipillui Inc.
Chínese /eudershíp und needs ure so
dífferent from those ín lndíu, Bruzí/,
Cunudu und Be/gíum. Tu/ent hus to
be regíonu//y dírected, und thutłs
whut wełre workíng on. Frunk/y, $
ítłs u bíg chu//enge, becuuse us wełre
new to some of these p/uces und $
our growth ís strong, wełre huvíng
troub/e teuchíng whut we wunt our
/euders to do und know.
Fiuncesco Stuiuce$
CEO, Enel Gieen Powei SpA
We prevíous/y went through u phuse
ín whích we moved peop/e out of the
centre ínto the períphery of the
compuny. Now wełre ín u phuse ín
whích peop/e ure comíng ínto the
centre from the períphery. A thírd
phuse wí// begín duríng 2012 ín
whích peop/e ure moved between
dífferent /ocutíons to ğ// tu/ent gups.
Muitin Senn
CEO, Zuiicl Finunciul Seivices Gioup
l /ook for g/obu//y-mínded peop/e
wíth the cupucíty to untícípute
chunge und the Ġexíbí/íty to uccept
ít. l u/so put u /ot of emphusís on
churucter. Good churucter, honesty,
und consístent behuvíour ŋ thutłs
whut wełre /ookíng for.
Duvid Cote
Cluiimun und CEO, Honeywell
l personu//y spend u greut deu/ of
tíme on ít. For exump/e, l revíew the
performunce of our top 200 peop/e
three tímes u yeur.
Andiey Kostin
CEO, VTB Bunk OAO
vTBłs corporute uníversíty $
wus estub/íshed síx yeurs ugo. $
Sínce then ít hus become u
promotíon spríngbourd for $
muny mídd/e-/eve/ munugers.
1Stl Annuul Globul CEO Suivey 2012 !&
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In tle pust, iecoveiing liom u downtuin
wus u ielutively stiuigltloiwuid
piocess; businesses could look loiwuid
to studying tle tiends und tle
competition, und plunning low to
iespond. Tlose duys uie long gone.
Tliee yeuis into tle ğnunciul ciisis,
unceituinty und volutility luve become
tle buseline expectution.
Yet clunging conditions ulso piesent
oppoitunities. Tle iise ol emeiging
economies, evei gieutei mobility ol
goods, cupitul und, incieusingly, ol
people, ulong witl ucceleiuting
teclnologicul udvunces in muny
industiies, uie suppoiting lui moie
optimism loi business piospects tlun
tle leudlines toduy would suggest is
meiited. CEOs luve built on tle
expeiience ol tle pust lew yeuis und
uie bettei piepuied to tuckle emeiging
iisks leud-on.
Tlut is wly we'ie seeing gieutei
conğdence liom CEOs in tleii own
compuny's ubility to giow tlun tleii
expectutions loi globul economic
giowtl, und wly tley believe tle
muin clullenge toduy lies in low
well oigunisutions uie uble to become
moie locul in tleii globul stiutegies.
Globul lundumentuls loi lutuie giowtl
uie still squuiely in pluce ÷ und
businesses uie positioning to tuke
udvuntuge wlen we do emeige liom
tlis peiiod ol economic volutility.
We believe tle ğndings luve bioud
implicutions loi business in 2012 und
beyond us compunies position loi
long-teim giowtl in tleii piioiity
muikets. Tle lollowing eiglt questions
uie distilled liom CEOs' insiglts und
cun lelp business leudeis uclieve tle
bulunce tley'll need to giow tleii
businesses in tlese volutile times.
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!' 1Stl Annuul Globul CEO Suivey 2012
1. How /ocu/ ís your g/obu/
growth strutegy?
CEOs uie slilting uwuy liom un expoit
mindset to iespond moie uttentively to
locul muikets. Ovei 70% ol CEOs uie
plunning to giow domestic customei
buses in tleii impoitunt muikets.
Competition will be tougl, puiticuluily
wlen opeiuting in muikets tlut uie
dissimilui und lui uğeld. Tle
tiuditionul wuy ol setting u giund
globul stiutegy und pusling it out to
opeiutions muy need to give wuy to u
moie ugile stiutegy tlut cun udupt ut
tle locul level.
2. How ure you bu/uncíng
g/obu/ cupubí/ítíes wíth /ocu/
opportunítíes?
CEOs uie developing new cupubilities
in tleii impoitunt muikets, und
tuiloiing uppioucles to ensuie tlut tle
best ol tleii globul expeitise suppoits
iutlei tlun imposes opeiutionul
stiuctuies on tle locul business. One in
ğve plun to innovute locully in tleii
impoitunt muikets; und ovei u tliid
expect to expund inteinul seivice
deliveiy. Tleyłll need to ğnd tle iiglt
scule to biing tle beneğts ol tleii
globul oigunisution to tle locul level
und muintuin pioğtubility.
3. ls your tu/ent strutegy $
ğt for growth?
Cost-locused meusuiements uiound
tulent stiutegy need to give wuy to
meusuiements uiound ietuins on
investment, us leudeis incieusingly
implement new uppioucles to solve
tleii tulent sloituge pioblems.
Two-tliids ol CEOs uie seeking
ielevunt dutu und unulysis liom tulent
munugeis to muke und inloim
investment decisions uiound people.
Implementing stiutegic woikloice
plunning will lelp leudeis look beyond
tle tulent sloituges toduy to ulign tle
tulent needed to lulğl business pluns.
Aiound u ğltl ol CEOs expect tley
will luve to muke ucquisitions oi
puitneislips to ğll tle gups. Tlis muy
be conseivutive, consideiing tle
degiee ol clullenges businesses luce
witl tulent.
4. Are your ínnovutíons
creutíng vu/ue for your
customers ŋ or just nove/ty?
Wlen it comes to innovuting in und loi
locul muikets, deliveiing on tle vulue
tlut customeis in tlose muikets expect
is puiumount. Between u ğltl und u
tliid ol ull CEOs suy tley uie cieuting
pioducts speciğcully loi tleii impoitunt
muikets. It will be incieusingly
impoitunt to get segmentution iiglt ÷
ut tle iegionul, countiy, city oi even
neiglbouilood level ÷ und to design
opeiuting models uiound seiving tlose
segments. Tlut meuns looking beyond
pioduct design to include luctois
sucl us pioduction, distiibution
und muiketing.
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1Stl Annuul Globul CEO Suivey 2012 !(
5. Ðo your strutegíc p/uns
focus on how to respond to the
most seríous consequences
you cou/d fuce?
Tle iunge ol CEO conceins ieĠects
low diveise souices ol iisks uie:
2S% uie 'extiemely conceined' tlut
instubility in cupitul muikets will
impuct business, loi exumple. Tle
numbei ol potentiul iisks und tleii
intei-ielutionslips muke it veiy
dilğcult to piedict wlut will occui
wleie und wlen, but compunies cun
bettei deul witl unceituinty ÷ und tuke
u moie stiutegic uppioucl to iisk ÷
by locusing on likely consequences,
no muttei wlut tle cuuse.
6. Are you respondíng to the
needs und construínts of the
communítíes ín whích you
operute?
CEOs iecognise tlut sustuinuble
business giowtl iequiies woiking
closely witl locul populutions,
goveinments und business puitneis,
und investing in locul communities.
Tlis cun meun cieuting job tiuining
piogiums, lelping to munuge iesouice
constiuints oi contiibuting to leultl
solutions. Ovei 60% plun to incieuse
investments in tle next tliee yeuis to
lelp muintuin tle leultl ol tle
woikloice, loi exumple.
7. Where ure the bíggest
opportunítíes for busíness
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coordínute better?
Compliunce witl u giowing body
ol iegulutions, puiticuluily wlen
opeiuting in dispuiute muikets, is u
complex tusk loi most businesses,
wlicl is wly CEOs consistently iepoit
ovei-iegulution us u tlieut to tleii
giowtl. Howevei, tle successes ol
tle piivute und public sectois uie
incieusingly inteitwined. Rouglly lull
ol CEOs believe tlut woikloice skills
und inliustiuctuie developments uie
top piioiities loi tleii goveinments,
und eiglt in ten CEOs suy tleii
business lus u iole in woikloice
development, otlei tlun tleii
own employees. Aieus sucl us
inliustiuctuie development, educution,
intellectuul piopeity piotection,
leultlcuie und iegulutoiy conveigence
stunduids uie iipe loi incieused
colluboiution between tle public und
piivute sectois. Ellective puitneislip
models ÷ bettei communicution.
8. Are you uduptíng your
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stukeho/der expectutíons?
Tle oigunisution ol tle lutuie will
likely be uccountuble to u dilleient
mix ol stukeloldeis liom u dilleient
mix ol muikets. Goveinunce models
need to udupt, beginning witl building
u leudeislip pipeline tlut ieĠects
potentiul lutuie demunds. It's u key
uieu ol locus globully, witl S3% ol
CEOs conceined ubout ieciuiting
und ietuining ligl-potentiul middle
munugeis und u desiie to build moie
diveise leudeislip teums.

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"* 1Stl Annuul Globul CEO Suivey 2012
ln rnc cusc o| rnc Fu, ir sccms rnur u|| irs mcmbcts wctc unxious ro bcncğr |tom rnc union
bur somc didnłr wunr ro upno|d rncit tcsponsibi|irics. Tnc mcmbcts o| ASFAN musr nor
|u|| inro rnc sumc rtup.
Ðr Puí/ín Chuchottuworn Piesident und CEO, PTT Plc, Tluilund
Tnc muin concctn |ot TOT\s ŋ und |ot Btuzi|iun compunics in gcnctu| ŋ is u |ucl o|
sli||cd |ubout. Tnis is u mujot |imiring |ucrot |ot Btuzi| roduy. lot gtowrn you nccd
ğnunciu| invcsrmcnr in in|tusrtucrutc und you nccd pcop|c ŋ quu|iğcd pcop|c wno utc
ub|c ro cutty our rnc p|uns o| rnc compunics wno utc scr up nctc. Toduy rnctc is u dcğcir
o| sli||cd |ubout in u|| sccrots, |tom rccnnicu| posrs ro |css sli||cd |ubout, |tom rnc
bui|ding rtudc ro rnc rtunspotr sccrot.
Luercío Jose de Lucenu Cosentíno CEO, TOTVs SA, Biuzil
N$'/#),43+(4,*).&36)3+&))
BEF)$',"&%$"2*
Wc tcu||y do nccd ro sru|| up |ocu| busincsscs wirn pcop|c |tom rnosc counrtics.
lr docsnłr mulc scnsc ro nuvc |utgc numbcts o| cx-purs wotling u|| tound rnc wot|d
us irłs jusr vcty cxpcnsivc, so wc nuvc ro rtuin, wc nuvc ro dcvc|op und wc nuvc ro urrtucr
rnc tignr |ocu| ru|cnr. lot rnc mosr putr rncsc |ocurions utc in ptcrry wi|d p|uccs. And
now mosr pto|cssionu|s wunr ro bc in utbun |ocurions, putricu|ut|y i| rncy nuvc |umi|ics.
So irłs un inctcusing cnu||cngc ro inducc pcop|c ro wotl in rnosc di|ğcu|r |ocurions.
Tom A/bunese Cliel Executive, Rio Tinto, UK
As cmctging mutlcrs uccc|cturc ŋ ot muybc rnc tcsr o| rnc wot|d dccc|cturcs ŋ rnctc is u
signiğcunr scnsc o| utgcncy. Tnctc is rnc scnsc rnur ir muy u|tcudy bc roo |urc ro p|ucc
yout bcrs. A sccond |ucrot ro considct ir rnur ir is mucn motc di|ğcu|r ro gcr inro rnosc
mutlcrs bccuusc o| rncit urrirudc cnungc. Tncy |cc| rnur posr-200S rncy nuvc |css ro
|cutn |tom rnc Wcsr.
Ldzuro Cumpos CEO, SWIFT, Belgium
Wc utc |ooling motc und motc ur rnc bu|uncc snccr. Wc utc |ooling mucn motc ur
wotling cupiru| nccds. lr is c|cut un cconomy rnur is going ro bc dc-|cvctcd is going ro
nuvc ctcdir tcsrticrions in rnc mutlcr so yout invcsrmcnr po|icy, yout ucquisirion po|icy
nus ro bc u |or motc ptudcnr rnun cvct bc|otc. Bur ir is u|so c|cut rnur rnc mutlcrs utc
nor going ro bc gtowing. So you tcu||y nccd ro invcsr.
Antonío Ríos Amorím Cluiimun und CEO, Coiticeiiu Amoiim SGPS SA, Poitugul
Bc|otc rnc ctisis, Futopc und rnc uS wctc rnc mosr impotrunr mutlcrs. Now wc utc
going ro lndiu, ro Cninu und bui|ding mucn srtongct tc|urionsnips wirn BRlC counrtics.
Wc utc sc||ing ticc, sugut und crnuno| ro u motc cxpundcd und bu|unccd wot|d.
Muríuno Bosch CEO, Adecougio SA, Aigentinu
1Stl Annuul Globul CEO Suivey 2012 ")
Wcłvc cctruin|y sccn mucn motc innovurion coming |tom oursidc rnc uS. Tcn ycuts
ugo, |css rnun 40 pctccnr o| out su|cs wctc oursidc rnc uS. Toduy irłs upptoximurc|y
55 pctccnr. Wcłvc gtown |tom u uS$22 bi||ion compuny ro u uS$J7 bi||ion compuny.
¥ou donłr do rnur by simp|y ruling uS ptoducrs und sc||ing rncm somcwnctc c|sc.
¥ou nuvc ro innovurc, dcsign, munu|ucrutc und soutcc |ocu||y ro bc succcss|u|
unywnctc. lot insruncc, wc ru|l ubour rnc nccd ro dcvc|op ptoducrs in lndiu und
Cninu, |ot su|cs born in rnosc counrtics und in ornct mutlcrs, inc|uding rnc uS.
Ðuvíd Cote Cluiimun und CEO, Honeywell, US
Tnc busincss cusc |ot innovurion is inctcusing, bur us l o|rcn suy, rnc cusy sru|| nus
bccn donc. lot innovurions ro bc mcuning|u||y bcrrct tcquitcs motc insignr inro rnc
|undumcnru|s o| scicncc. Tulc rnc cxump|c o| b|ood rninning. Rc|urivc|y cut|y on,
ptoducrs |ilc uspitin wctc uscd us u b|ood rninning dtug. Bur in otdct ro nuvc u tcu||y
sopnisricurcd b|ood rninning rtcurmcnr, u wno|c ncw |cvc| o| cncmisrty is tcquitcd.
So moving |tom tc|urivc|y srtuignr |otwutd cncmisrty ro vcty comp|cx cncmisrty is
u di|ğcu|r rtunsirion.
Ðr Muríjn Ðekkers Cluiimun, Buyei AG, Geimuny
Rccognising rnur rnc wot|d is somcwnur sp|ir down rnc midd|c bcrwccn s|ow gtowrn
und tupid gtowrn, youłd bcrrct bc ub|c ro opcturc in born ur rnc sumc rimc. ¥ou nuvc
ro munugc rnur di|ğcu|r s|ow gtowrn und rncn comp|crc|y swircn gcuts und go ro
nign gtowrn. ¥ou nuvc ro ğnd wuys o| moving yout tcsoutccs ŋ und |ot us irłs ru|cnr ŋ
|tom wnctc irłs nor bcing uri|iscd ro wnctc ir cun bc uri|iscd.
Bríun Ðuperreuu/t Piesident und CEO, Muisl & McLennun Compunies Inc., US
To reud the fu// íntervíew trunscrípts und wutch se/ected vídeos,
vísít www.pwc.com´ceosurvey
On rnc ornct nund, busincsscs nuvc ump|c cupiru|. Wc scc busincsscs invcsring in
cquipmcnr und so|rwutc. And consumct spcnding o| |urc nus piclcd up. So rnctc utc
somc ncudwinds, rnctc utc somc rnings rnur utc suppotrivc, und ovctu|| rnurłs going
ro mulc |ot u picrutc o| tc|urivc|y s|ow gtowrn bur wirn vcty |ow inĠurion.
Roger W. Ferguson, Jr Piesident und CEO, TIAA-CREF, US
A|| out munugcmcnr und sru|| lnow |u|| wc|| rnur wc utc onro somcrning big und rnur
in rnc |urutc wc muy no |ongct bc cu||cd u bunl. Nowuduys, somc compunics ptovidc
in|otmurion, orncts ctcdir bur, ur rnc cnd o| rnc duy, rnc botdcts wi|| bccomc b|uttcd
und u|| o| us wi|| bc compcring |ot cusromcts. So, gcrring u c|icnr und rtuns|otming
in|otmurion inro lnow|cdgc is wnctc rnc burr|c wi|| bc |ougnr.
Fruncísco Gonzd/ez Cluiimun und CEO, Bunco Bilbuo Vizcuyu Aigentuiiu
(BBVA) SA, Spuin
Tnc sotr o| g|immcting rtcnds wc scc utc. snou|d wc dcvc|op outsc|vcs motc in Sourn
Amcticu ot Notrn A|ticu? Tnur is somcrning wnctc wc nuvc rulcn oprion dccisions turnct
rnun big srturcgic cnungcs. Tnc ornct lcy rning, l supposc, is wc utc bcginning dcvc|op
ncw busincss modc|s utound rnc Łc|oudł. So rnc dcp|oymcnr o| busincss ptoccss sctviccs
wnctc wc ctcurc p|ur|otms wnicn muny indusrty p|uycts usc und co||uboturc on, bccuusc
rncy utc nuppy ro do so, sucn HRBPO p|ur|otms ot p|ur|otms |ot rnc |uc| cutds rnur
rtuclcts usc utound Futopc, ot smutr mcrcting p|ur|otms wnicn cun bc uscd by muny
uri|irics, u|| o| rncsc rnings utc bcginning ro mulc u di||ctcncc.
Andy Green CEO, Logicu Plc, UK
"! 1Stl Annuul Globul CEO Suivey 2012
Tnc dcmogtupnic cnungcs rnur wc scc occutting in muny o| rnc tcgions wnctc wc opcturc
ŋ sntinling popu|urions, un ugcing wotl|otcc und divctsi|ying dcmogtupnics ŋ
compounds rnc cnu||cngcs wc |ucc und inrcnsiğcs rnc wut |ot ru|cnr.
Ðr Rđdíger Grube Cluiimun und CEO, Deutscle Buln AG, Geimuny
Wc nuvc suid wc utc going ro invcsr uS$100 mi||ion in A|ticu wnctc rnc tcrutn on
invcsrmcnr und mutgins utc mucn bcrrct |ot us rnun rnc mutgins in ornct mutlcrs, sucn
us Futopc und rnc uS. ltom rnur pctspccrivc wc rninl invcsrmcnrs in cmctging mutlcrs
mulc u |or o| scnsc. Tnurłs wny wc utc moving |usr.
Husseín Huchem CEO Middle Eust und Aliicu, Aiumex, UAE
uuting tcccnr ycuts, rnc issuc o| srulcno|dct munugcmcnr nus bccomc usrounding|y
impotrunr. Tnc wuy in wnicn u compuny cun posirion irsc|| wirnin rnc |utgct socicry und
now ir cun ucnicvc ucccpruncc wirnin u givcn communiry nus bccomc u soutcc o| vu|uc.
Zso/t Hernddí Cluiimun und CEO, MOL Plc, Hunguiy
l bc|icvc otgunisurions nuvc ro ğnd rncit own so|urions. Wc tun u ru|cnr |ucroty o| 700
ro S00 pcop|c nctc in lndiu und wc utc wotling on ctcuring u g|obu| ru|cnr poo| o| ubour
100 pcop|c ŋ 60 o| rncm |tom lndiu und 40 |tom ornct counrtics ŋ so rnur wc cun scnd
rncm unywnctc uctoss out opcturions. Wc nopc ro nuvc rnis ru|cnr poo| tcudy wirnin
rnc ncxr rntcc ycuts.
Bubu Ku/yuní Cluiimun und Munuging Diiectoi, Bluiut Foige Ltd, Indiu
ln rnc |usr |out ycuts, out innovurion c||otrs nuvc bccn |ocuscd on susruinubi|iry. ln cvcty
ptoducr und sctvicc, in cvcty rccnno|ogy rnur wc dcvc|op, wc ptiotirisc susruinub|c
dcvc|opmcnr. Tnur mcuns unyrning wc ptoducc snou|d uri|isc |css tcsoutccs. Anyrning wc
givc ro out consumcts snou|d nc|p rnc consumct ro uri|isc |cwct tcsoutccs. ln rnc vu|uc
cnuin us u wno|c, wc snou|d uri|isc |cwct tcsoutccs und wotl wirn compunics wno uri|isc
|cwct tcsoutccs.
Erdu/ Kurumercun Piesident und CEO, Eczucibuąi Gioup A S, Tuikey
lnnovurion in mosr indusrtics is roo dtivcn by rccnnicu| pctspccrivcs turnct rnun
consumct pctspccrivcs. Wcłtc vcty |ond o| ru|ling ubour u|| sotrs o| rccnnicu| possibi|irics.
Bur in muny cuscs, wc donłr ucruu||y undctsrund muny o| rnc mutlcrs rnur wcłtc rtying
ro sc|| inro. And l nuppcn ro bc|icvc rnurłs wnctc you snou|d srutr. ¥ou nccd ro bting rnc
consumct inro rnc cquurion ğtsr, bc|otc pusning our rccnnicu| so|urions.
Jouko Kurvínen CEO, Stoiu Enso Oyj, Finlund
Out bunl nus btuncn und o|ğcc munugcts in rnc Miyugi, lulusnimu und lwurc
Ptc|ccrutcs, wnicn wctc u|| nir by rnc disusrct. l ro|d rncsc |ocu| ncuds, wno wctc rnc
on-rnc-spor commundcts, nor ro punic bur ro sir rignr und issuc cxp|icir ditccrions,
und rnur i| rnings wcnr wtong, l us rnc ptcsidcnr wou|d ussumc |u|| tcsponsibi|iry.
Yoshío Kono Piesident und CEO, Tle Noiinclukin Bunk, Jupun
1Stl Annuul Globul CEO Suivey 2012 ""
ltom u |ongct-rctm pctspccrivc, porcnriu| usscr quu|iry dumugc srcmming |tom rnc
Futozonc ctisis musr bc considctcd. Howcvct, no mujot Russiun bunl nus uny signiğcunr
ditccr cxposutc ro rnc pctipnctu| Futopcun sovctcigns, und rnc oi| und commodirics
pticcs sccm ro bc vcty tcsi|icnr us rncy utc suppotrcd by rnc Cnincsc dcmund, bcrrct rnun
cxpccrcd uS cconomic duru und rnc conrinuing po|iricu| untcsr in rnc Midd|c Fusr.
Andrey Kostín Piesident und Cluiimun ol tle Munugement Bouid,
JSC VTB Bunk, Russiu
Wncn R8u, mutlcring und dcsign wotl indcpcndcnr|y o| onc unornct, wc do nuvc somc
succcsscs. Bur wc donłr gcr rnc sumc sotr o| ump|i|ying c||ccr |ilc wc do wncn rncy wotl
rogcrnct in rnc innovurion rtiung|c.
Keíth McLough/ín Piesident und CEO, AB Electiolux, Sweden
Wcłvc nor bccn ub|c ro rulc onc srturcgy rnur wi|| wotl in lndiu, rnur wi|| wotl in Cninu,
rnur wi|| wotl in Btuzi|. So you nuvc ro udupr rnc srturcgy vcty mucn ro rnc |ocu| mutlcr.
ln Cninu out |ocus nus bccn on |utgc|y otgunic gtowrn bccuusc wc utc u |otcign cnriry.
Wc cunłr ucruu||y own conrcnr usscrs so wc nuvc ro nuvc u |or o| csrub|isncd putrnctsnips.
in Cninu putrnctsnips utc tcu||y ctiricu| |ot us. ln ornct p|uccs |ilc lndiu rncy utc
ptobub|y |ut |css ctiricu| und rnctc irłs ubour now ro gcr disrtiburion uctoss rnc counrty.
So cucn mutlcr is di||ctcnr und l rninl rnur rnc |ocus |ot us is now ro rui|ot out srturcgy
ro mccr rnc |ocu| nccds o| rnc busincss.
Nuncy McKínstry CEO und Cluii ol tle Executive Bouid, Wolteis Kluwei,
Tle Netleilunds
Wc sri|| utc tc|urivc|y oprimisric rnur wc nuvc un uw|u| |or o| oppotrunirics born
domcsricu||y in rnc uS, us wc|| us utound rnc wot|d ro gtow by, |tunl|y, ruling
mutlcr snutc.
F Wí//íum McNubb lll Cluiimun, Piesident und CEO, Tle Vunguuid Gioup Inc., US
Wc dccp|y bc|icvc wc nuvc ro bc in Cninu ro lnow rnur mutlcr und rnosc compcrirots, in
otdct ro rulc rncm on ur rncit own gumc. Wc |cutncd rnur in rnc cut|y 1960s wncn out
ptcdcccssots wcnr ro Jupun und succcss|u||y rool on komursu, u vcty srtong cmctging
compcrirot. Tnurłs cxucr|y wnur wcłtc going ro do in Cninu, wnctc wcłvc u|tcudy
csrub|isncd 15 p|unrs wirn 9,000 cmp|oyccs. Out dcu|cts rnctc utc srtong. Wcłtc bui|ding
rnc sumc Curctpi||ut busincss modc| in Cninu us wc nuvc cvctywnctc c|sc in rnc wot|d,
und l bc|icvc Cnincsc cusromcts wi|| tcspond ro rnur ovct rimc.
Ðoug/us R. Oberhe/mun Cluiimun und CEO, Cuteipillui Inc., US
Tnc biggcsr |ucrot |ucing rnc g|obu| cconomy o| roduy is, now do wc tc-injccr gtowrn inro
counrtics? l| wc gcr rnur tignr, rncn rnctcłs u wot|d o| possibi|irics |ot rnc cconomy. l| wc
donłr, irłs going ro bc |c|r up ro rnosc gtowing cconomics ro pu|| rnc tcsr o| rnc wot|d u|ong.
Ríchurd OłBríen Piesident und CEO, Newmont Mining Coipoiution, US
"# 1Stl Annuul Globul CEO Suivey 2012
Wc wctc u Ctccl compuny |ot 90 ycuts ŋ bur in rnc |usr 15 ycuts wcłvc bccomc u
mu|rinurionu| compuny. Tnc scniot munugcmcnr rcum, nowcvct, tcmuins, ro u |utgc
cxrcnr, Ctccl und mu|c. How docs u compuny |ilc outs dcvc|op u mu|ricu|rutu| ru|cnr
poo| |tom wnicn u |urutc munugcmcnr rcum cun bc dtuwn?
Ðímítríos Pupu/exopou/os CEO, TITAN Cement SA, Gieece
lusr ycut, muny compunics wctc burrctcd. Tncy do nor nuvc rnc cupuciry ro invcsr in
rnc |urutc und rnc cupiru| mutlcrs nuvc bccomc ubsutd. Tnctc nuvc bccn no iniriu|
pub|ic o||ctings (lPOs), wni|c ptivurc cquiry is u|so sccpricu|. \u|uurions nuvc comc
down. lutgc ptojccrs nuvc comc ro u srundsri|| bccuusc o| tcgu|uroty tcusons ot cusn
consrtuinrs. So rnctc utc scvctu| oppotrunirics our rnctc |ot u cusn-ticn gtoup |ilc outs.
Ajuy G. Pírumu/ CEO, Piiumul Gioup Ltd, Indiu
Ttudc wirn A|ticu nus inctcuscd signiğcunr|y, und impotrunr|y, inrtu-A|ticu rtudc nus
u|so inctcuscd. Wc utc sccing rnc purrctns o| cxpotrs cnungc motc und motc inro rnc
cmctging mutlcr cconomics. l| l |ool ur out own c|icnr busc, born in Sourn A|ticu und in
rnc ornct A|ticun cconomics rnur wc opcturc in, und i| l |ool ur rnc g|obu| c|icnrs rnur wc
inrctucr wirn in rnc Butc|uys Ctoup, rnc qucsrion wc gcr uslcd u|| rnc rimc is, ŁCun you
nc|p us do busincss in A|ticu?ł
Muríu Rumos Gioup Cliel Executive, ABSA Gioup Ltd, Soutl Aliicu
Rignr now, wcłtc ur 50% pcncrturion o| Mu|uysiun nouscno|ds. So rnc qucsrion bccomcs,
now do wc conrinuc ro ucnicvc doub|c digir gtowrn cvcty ycut? Tnc unswct is rnur wc nuvc
ro simu|runcous|y movc up rnc vu|uc cnuin, in |inc wirn cusromct rtcnds und dcmunds,
uncud o| cuttcnr und wou|d bc compcririon, so us ro cutn out |uit snutc o| rnc cusromct
|i|csry|c wu||cr. And ro conrinuc gtowing out cusromct numbcts, born nouscno|ds und
individuu|s. Out conrcnr tcucn, givcn rnc cuttcnr rccnno|ogy cun u|so rtuvc| bcyond
Mu|uysiun botdcts. So wc nuvc ro rninl o| wuys ro moncrisc und bui|d on rnis.
Rohunu Rozhun CEO, ASTRO Muluysiu Holdings, Muluysiu
l undctsrund rnc ourcty, bur rnctcłs u tisl rnur i| rnc tcgu|urots tcspond in u popu|isr wuy,
rnc tccovcty cou|d bc rntcurcncd. Tnc pub|ic und rnc ptivurc sccrots wcnr inro rnc ctisis
rogcrnct, now rncy nccd ro comc our o| ir rogcrnct. So |ot us, diu|og is vcty impotrunr
und somcrning rnur wc putsuc.
Murtín Senn CEO, Zuiicl Finunciul Seivices Gioup, Switzeilund
ln rctms o| rccnnicu| btculrntougns, rnc tcncwub|c cnctgy indusrty gcncturcs un
inotdinurc umounr o| innovurion. So, wc nuvc sroppcd rtying ro bc rnc compuny rnur
gcncturcs u|| rnc idcus und insrcud wc |ocus on rnc bcsr idcus tcgutd|css o| wnctc rncy
otiginurc. lnsrcud o| u|wuys rtying ro bc rnc invcnrot, Fnc| now wunrs ro bccomc rnc
compuny rnur is bcsr ur commctciu|ising innovurions und btinging rncm ro scu|c ŋ
wncrnct rnosc innovurions utc inrctnu| ot cxrctnu| ro out compuny.
Fruncesco Sturuce CEO, Enel Gieen Powei SpA, Ituly
Wncn wc |ool ur ptoducrs rnur wc ptovidc ro un cmctging midd|c c|uss, wc donłr bc|icvc
rncy wunr u quu|iry srundutd bc|ow wnur Amcticuns ot Futopcuns nuvc comc ro cxpccr.
Wnur wc nuvc sccn, rnougn, is rnur wc nuvc ro ğnd wuys ro bui|d cupuciry in cmctging
mutlcrs ur |owct cupiru| cosrs.
:-'"&#%$!"&3&0$Cluiimun ol tle Bouid und CEO, Owens Coining, US
1Stl Annuul Globul CEO Suivey 2012 "$
l um nor going ro sir in london und rty ro scr rnc ptoducr srturcgy in lndoncsiu. lrłs
doomcd ro |ui|. Tnc busincss modc|, rnc lind o| pcop|c you gcr und rnc cu|rutc is vcty,
vcty inrimurc|y |inlcd. l bc|icvc rnur rnc |ucr wc utc u dcccnrtu|iscd |cdctu| modc| u||ows
us ro nuvc bcrrct quu|iry pcop|c und, u|rimurc|y, ro do bcrrct in rnc mutlcrp|ucc. Tnc no|y
gtui|, i| you wisn, is wncn you cun combinc rnc |cdctu| modc|, wnicn Ptu nus u|wuys nud
in irs nisroty, wirn ğnunciu| discip|inc, wnicn nus bccn motc rnc sroty ovct rnc |usr rntcc
ot |out ycuts. rnc combinurion is vcty powct|u|. Wc consumc 12% |css cupiru| rnun |out
ycuts ugo und gcncturc 90% motc ptoğr. Tnurłs rnc sumc busincss bur wirn ccnrtu|
munugcmcnr o| cupiru|. linling rnosc rwo uspccrs is impotrunr.
Tídjune Thíum Gioup Cliel Executive, Piudentiul Plc, UK
lr is wotrn tcmcmbcting rnur 40 mi||ion pcop|c nuvc tcccnr|y joincd rnc consumct mutlcr
und rnur Btuzi| is nor sccing u ctisis in dcmund. On rnc conrtuty, 45% o| pcop|c do nor ycr
nuvc un lCu T\, 45% do nor ycr nuvc u wusning mucninc und 95% o| rnc ncw midd|c c|uss
donłr own rncit own nomc, mosr o| rncm in rnc notrncusr. As rncsc pcop|c cnjoy nignct
|iving srundutds, rncy wi|| wunr rncit own nomcs, coolcts, |tidgc |tcczcts, lCu T\s, crc.
Luízu He/enu Trujuno lndcío Rodríguez CEO, Muguzine Luizu SA, Biuzil
ln otdct ro inrctnurionu|isc, ru|cnrcd individuu|s |tom rnc ucquitcd compuny nuvc rulcn
cnutgc o| somc impotrunr posirions. And impotrunr|y, wc |ocus on dcvc|oping rnc ru|cnr
o| out |ong-rctm cmp|oyccs by ptoviding rncm wirn ncw oppotrunirics. ln rnis wuy rnc
compuny cun tcĠccr rnc ucnicvcmcnrs mudc in rctms o| rnc cu|rivurion o| sru|| in ncw
ucquisirions und rnc |otging o| out own ru|cnrs. Succcss dcpcnds on rnc bu|uncc bcrwccn
rncsc rwo uspccrs.
Yung Yuunqíng Cluiimun und CEO, Lenovo, Clinu
ln u|| out compunics wcłvc nud ro cnungc tudicu||y rnc wuy wc do busincss. lrłs bccn un
cxciring rimc bccuusc rnc Ayu|u o| roduy is now, in my opinion, |ut motc tc|cvunr ro rnc
vusr mujotiry o| out counrtymcn rnun ir wus 10 ro 20 ycuts ugo.
Juíme Augusto Zobe/ de Ayu/u Cluiimun und CEO, Ayulu Coipoiution,
Tle Plilippines
A |or o| rnc tisls you rcnd ro |ool ur on tisl mups utc |css o| rnc rtudirionu|, ğnunciu|
tisls, rnc conrto| tisls ŋ u|bcir l srtong|y bc|icvc rnur inrctnu| uudir ougnr ro conrinuc ro
|ocus on rnosc. Bur rnctc is mucn motc tisl utound cnungcs in compcririon ot yout
consumcts und now youłtc rtying ro uccommodurc rnosc in yout busincss srturcgy.
:-'"&#%$;"-2#$Piesident und CEO, Tle DIRECTV Gioup Inc., US
Wc nuvc muny midd|c munugcmcnr posirions rulcn up by rnis young gcncturion,
und rncy snutc rnc sumc visions und cotpoturc cu|rutc us rncit co||cugucs. Tncy utc u|so
commirrcd ro rnc pupct busincss. l |cc| vcty conğdcnr rnur rncy wi|| mulc u signiğcunr
conrtiburion ro rnc cnrctptisc, und bui|d ptomising cutccts |ot rncmsc|vcs.
Cheung Yun Cluiiludy, Nine Diugons Pupei (Holding) Ltd, Clinu
"% 1Stl Annuul Globul CEO Suivey 2012
In totul, we conducted 1,2S8 inteiviews
witl CEOs in 60 countiies between
22 Septembei und 12 Decembei 2011.
By iegion, 440 inteiviews weie
conducted in Asiu Puciğc, 291 in
Westein Euiope, 236 in Noitl Ameiicu,
1S0 in Lutin Ameiicu, 88 in Centiul
& Eustein Euiope und S3 in tle Middle
Eust & Aliicu. Tle inteiviews weie
spieud ucioss u iunge ol industiies.
Fuitlei detuils, by iegion und industiy,
uie uvuiluble on iequest.
Tle mujoiity ol tle inteiviews weie
conducted by teleplone, witl some
countiy exceptions. Inteiviews weie
conducted luce-to-luce in Aliicu und tle
Plilippines, postul suiveys weie used in
Jupun und Koieu und online suiveys
weie completed in most centiul
Ameiicun countiies. In uddition,
membeis ol oui globul CEO punel weie
invited to tuke puit online, witl 167
CEOs ucioss tle globe pioviding tleii
views tliougl tlis online punel. All tle
inteiviews weie conducted in conğdence
und on un unuttiibutuble busis.
Tle lowei tlieslold loi inclusion in
tle top 30 countiies wus compunies
witl moie tlun 100 employees oi
ievenues ol moie tlun USS10 million.
Tlis is iuised to S00 employees oi
ievenues ol moie tlun USSS0 million
in tle top 10 countiies.
42% ol tle compunies lud ievenues
ol USS1 billion und ovei, und u luitlei
34% lud ievenues ol ovei USS100
million up to USS1 billion. Tle
iemuining 20% lud ievenues ol up to
USS100 million. Compuny owneislip is
iecoided us piivute loi 47% ol tle
compunies, witl tle iemuining 48%
listed on ut leust one stock exclunge.
To bettei uppieciute wlut is
undeipinning tle CEOs' outlook loi
giowtl we ulso conducted in-deptl
inteiviews witl 37 CEOs liom ğve
continents ovei tle louitl quuitei
ol 2011. Witl globul iecoveiy still
uppeuiing liugile tleii insiglts look
ut low multinutionul businesses uie
udupting tleii uppioucles in tlese
conditions, including undeistunding
low tle globul economy is clunging,
low stiutegies uie clunging in
iesponse, und low tulent stiutegies
in puiticului uie clunging.
Tleii inteiviews uie quoted in tlis
iepoit, und moie extensive extiucts
cun be lound on oui website ut
www.pwc.com/ceosuivey wleie
you cun exploie iesponses by sectoi
und locution.
PwC's extensive netwoik ol expeits
und speciulists lus piovided its
input into tle unulysis ol tle suivey.
Oui expeits spun muny countiies
und industiies.
Note: Not ull ğguies udd up to 100%
due to iounding ol peicentuges und
to tle exclusion ol 'neitlei/noi' und
'don't know' iesponses.
For further ínformutíon on
the survey content, p/euse
contuct:
Soplie Lumbin
Diiectoi ol Globul Tlouglt Leudeislip
+44 20 7213 3160
soplie.lumbinguk.pwc.com
Suzunne Snowden
Globul Tlouglt Leudeislip
+44 20 7212 S481
suzunne.snowdenguk.pwc.com
For medíu enquíríes, $
p/euse contuct:
Mike Duvies
Diiectoi ol Globul Communicutions
+44 20 7804 2378
mike.duviesguk.pwc.com
For enquíríes ubout the
reseurch methodo/ogy,
p/eusecontuct:
Heutlei Huiiison, Muiket Insiglts
+44 20 7212 8334
leutlei.s.luiiisonguk.pwc.com
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A4$*)$*),4")7:,4)O''+/#))
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Wc nuvc |o||owcd rnc sumc mcrnodo|ogy us uscd in
ptcvious ycuts ro cnsutc wc utc |uit|y tcptcscnring
rnc cmctging cconomics o| rnc wot|d. Wc nuvc
conducrcd inrctvicws wirn CFOs in 60 counrtics
wot|dwidc, und vuticd rnc numbct o| inrctvicws
in |inc wirn CuP.
1Stl Annuul Globul CEO Suivey 2012 "&
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-2B)/'>)"#*"24"&")03',&$D+,">),3),4")
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Wcłd |ilc ro u|so rnunl out Ncrwotl lcudctsnip
rcum ŋ ucnnis M. Nu||y, Robctr Motirz, lun Powc||,
Notbctr Winlc|jonunn und Si|us ¥ung ŋ |ot rncit
invu|uub|c insignrs und suppotr.
<)+#$#,-2)+-&%$2#&3
Emily Cluicl
Soplie Lumbin
Luiiy Yu
=,-2)+-&%$.)&+,
Ciistinu Ampil
Justine Biown
Aine Biyn
Mike Duvies
Jonutlun Giunt
Nick Jones
Cliistoplei Micluelson
Elizubetl Montgomeiy
Oiiunu Pound
Leylu Yildiiim
Advísory group
Fouud Alueddin
Donuld Almeidu
Jon Andiews
Tom Ciuien
Moiiu Elms
Simon Fiiend
Leo Jolnson
Puulu Loop
Siidluiun Nuii
Tony Poultei
Juun Pujudus
Bluiti Guptu Rumolu
Alustuii Rimmei
Yuel Selğn
Jun Stuiesson
Duvid Wu
Other contríbutors
Iun Biemmei
Pol-Klim Cleul
Miles E. Eveison
Himuni Guptu
Pub/íshíng und $
project munugement
Nutuslu Cumbell
Angelu Lung
Roxunu Opiis
Heutlei Huiiison
Suzunne Snowden
On/íne und mu/tímedíu
Eluine Aitken
Aslley Hislop
Nick Musteis
Bluke Neimun
Julie Szydlowski
Ðesígn und /uyout
Design & Mediu ÷ Tle Studio
Reseurch und dutu unu/ysís
Tle ieseuicl wus cooidinuted by tle
PwC Inteinutionul Suivey Unit, locuted
in Bellust, Noitlein Iielund.
J"*"/&04)6",43>3#3(=)/'>)5"=)03',/0,*
"' 1Stl Annuul Globul CEO Suivey 2012
J"#/,">)&"/>$'(
10Minutes on tle CEO ugendu.
Deliveiing iesults: giowtl und vulue
in u volutile woild (Junuuiy 2012)
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"%"&7 8493
Highlights
Companies are getting more local about their
global growth strategies.
Many are expanding capabilities in their priority
markets and innovating locally to better serve
new customers in new segments.
Seeking growth outside familiar markets calls
for careful monitoring of ongoing risks, both at
the local level and by considering their potential
impacts on global businesses.
CEOs are also challenged to address talent
issues more systematically and strategically
in all their markets.
%
).$&/$0(-%1.2+&/2/&3%+$-%0$4(5&+/$&3%'+6%&+7($%+
toll on CEO conğdence in tle piospects loi tleii
business giowtl in 2012. But despite tle muny
unknowns, compunies uienłt on tle delensive.
Oui 1Stl Annuul Globul CEO Suivey ol 1,2S8
806/$(66%2(+-(56%/$%9"%4.0$&5/(6%6'.:6%&'+&%)*#6%
uie tuking delibeiute steps to giow in piioiity
muikets ŋ tlose tley believe uie most impoitunt
loi tleii lutuie.! Tleyłie mindlul ol iisks und costs,
but uwuie ol tle gieutei iisk ol stunding still.
Wełve diuwn on tle ğndings liomtle suivey,
und liomoui ieluted ieseuicl, to cieute eiglt
questions tlut we tlink lelp to liume tle
clullenges und oppoitunities lucing CEOs.
Suivey iesponses muke cleui tlut ovei tle next
&'5((%3(+56;%6&5+&(,/(6%4($&5(%.$%,(&&/$,%&'(%5/,'&%
globul business model loi u woild wleie iisks %
und oppoitunities uie olten veiy mucl locul.
:KDWłV LQĠXHQFLQJWKH &(2DJHQGD"
Long-teimbusiness pluns uie likely to iemuin
consistent in spite ol expected volutility in 2012.
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Only 1S%ol CEOs expect tle globul economy to
impiove in 2012. Yet 40%uie Łveiy conğdentł ol
tleii ievenue giowtl piospects, down modestly
liomtle 48%wlo ugieed lust yeui. So business
conğdence loi tle upcoming yeui lus been
disiupted, puiticuluily by tle outlook in Euiope,
but giowtl pluns uie still moving loiwuid.
+)*7DOHQWDQGLQQRYDWLRQDUH NH\WRUHVXOWV
Tle clullenges ol getting tle iiglt people in
tle iiglt pluces und continuously ienewing
innovutions weie identiğed us key constiuints by
CEOs. One in loui CEOs suy tulent constiuints luve
ullected tleii ubility to cluse muiket oppoitunities,
tleieby limiting giowtl potentiul. And tle speed
und intensity ol competition lus mude it ciuciul
loi compunies to be continuous innovutois. As u
iesult, tulent stiutegies und innovution cupucity uie
two ol tle biggest uieus wleie CEOs uie plunning
clunges in tle coming yeui.
,)*3UHSDULQJIRU WKH FRQVHTXHQFHV RIULVN
Reliunce on piioiity muikets uwuy liomlome
will clullenge compunies to bettei piepuie loi tle
consequences ol business disiuption. Embedding
tle constiuints und needs ol locul communities %
in stiutegic pluns, und woiking witl stukeloldeis
to uddiess tlem, will become u biggei element ol
5/67%5(6/2/($4(<
%1 All suivey ğndings uie liomPwCłs 1Stl Annuul CEO Suivey, Junuuiy 2012. Find lull suivey iesults und inteiviews witl % 37 CEOs ut www.pwc.com/ceosuivey
January 2012
Continued
unceituinty lus
tuken u toll on
CEO conğdence
in tleii piospects
loi business giowtl in 2012. But
compunies uien't on tle delensive.
Diuwing on ğndings liom oui 1Stl
Annuul Globul CEO Suivey,
10Minutes on tle CEO ugendu
exploies eiglt ciiticul questions loi
business leudeis us tley position tleii
compunies loi long-teim giowtl in
tleii piioiity muikets.
Millenniuls ut woik: Resluping
tle woikpluce (Decembei 2011)
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cnrcting inro
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o| wotl. Atc you tcudy?
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Tle millenniul
geneiution, now
Ġooding into
employment, will
slupe tle woild
ol woik loi yeuis to come. Attiucting
tle best ol tlese millenniul woikeis is
ciiticul to tle lutuie ol youi business.
In lute 2011, PwC suiveyed ovei 4,000
univeisity giuduutes. Tlis iepoit
exploies tleii cuieei uspiiutions,
uttitudes ubout woik, und knowledge
ol new teclnologies.
Cupitul muikets in 202S: Tle lutuie
ol equity cupitul muikets
(Decembei 2011)
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Is tle locus ol
cupitul muikets
ğnunce moving
eustwuid?
Will emeiging
muiket
exclunges luve tle soplisticution
und inliustiuctuie to clullenge
incumbent exclunges in tle West?
Wlut uie tle diiveis belind tle
clunge in cupitul muiket dynumics?
Tlese uie some ol tle questions we
usked in oui suivey ol senioi
munugeis liom compunies ucioss
tle globe. Tleii iesponses liglliglt
tle clullenges lucing incumbent
muikets in tle coming two decudes.
Wlut next loi tle Euiozone? Possible
scenuiios loi 2012 (Decembei 2011)
Tle potentiul
politicul und
economic outcomes
emeiging liom tle
Euiozone ciisis in
2012 uie dispuiute,
ultlougl ull sluie
u similui tleme.
A luisl udjustment to u new
ğscul ieulity will be unuvoiduble,
ieguidless ol tle putl politiciuns
decide to lollow. Tlis iepoit unulyses
u numbei ol scenuiios und outlines
tle outcomes ol eucl in teims ol tle
potentiul Euiozone inĠution und
GDP impuct ovei tle medium teim.
1Stl Annuul Globul CEO Suivey 2012 "(
Cybeiciime: piotecting uguinst tle
giowing tlieut. Globul Economic
Ciime Suivey (Novembei 2011)
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PwC's sixtl globul
economic ciime
suivey exumines tle
cuuses und ellects ol
liuud woildwide,
locusing on tle
giowing tlieut ol
cybeiciime. A decude
on liom oui ğist suivey und tle liuud
iisk continues to iise. Oui suivey slows
tlut economic ciime is peisistent und
tlut oigunisutions need to be vigilunt
und piouctive wlen ğglting liuud.
Eye ol tle stoim. Key ğndings liom
tle 2012 Globul Stute ol Inloimution
Secuiity Suivey

(Septembei 2011)
Accoiding to tle
iesults ol tlis study,
tle mujoiity ol
executives ucioss
industiies und
muikets woildwide
uie conğdent in tle
ellectiveness ol tleii
oigunisution's inloimution secuiity
piuctices. Tlis iepoit exploies tle
busis loi tlis conğdence, und exumines
wleie oigunisutions luve mude
piogiess in uddiessing inloimution
secuiity ovei tle pust yeui.
Resilient giowtl: Muking tle most
ol oppoitunities uwuy liom lome
(August 2011)
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www.pwc.com/risk
CEOs uspiiing to
ieignite compuny
giowtl uie looking
ut lust-giowing
emeiging muikets
und seeking tle
oppoitunities tlut
developed muikets
continue to yield. In tlis iepoit,
PwC outlines tle iisks to look out
loi ut eucl stuge ol tle muiket
lilecycle und low tley could impuct
potentiul oppoitunities.
Post 3.11 Jupun: Globul Community's
Peispective (July 2011)
Post 3.11 1upun:
Globul Communityłs
Peispective
www.pwc.com/jp
PwC C|obu| CFO
Pu|sc Sutvcy
Ju|y 2011
In July 2011, we
suiveyed 201 globul
business leudeis liom
oui inteinutionul CEO
punel wlo puiticipute
in PwC's Annuul
Globul CEO suivey.
Tle uim wus to guin
insiglt into low tle tiugic events ol
tle Gieut Eust Jupun euitlquuke und
Tsunumi, und tle ensuing ciisis ut tle
Fukuslimu nucleui plunt, luve ullected
inteinutionul business leudeis'
conğdence in Jupun. Tle iepoit looks
ut tle stiutegic und opeiutionul lessons
leuined, und wlut Jupun needs to locus
on loi its lutuie competitiveness.
Giowtl ie-imugined: Piospects in
emeiging muikets diive CEO
conğdence (Junuuiy 2011)
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In tle lust quuitei
ol 2010, we set out
to uncovei low CEOs
weie uppioucling
giowtl, duiing u
time wlen
sustuinuble economic
giowtl uppeuied lui
liom ussuied. We suiveyed 1,201
business leudeis in 69 countiies
uiound tle globe. Tle iesults slowed
tlut two yeuis iemoved liom tle
deptls ol iecession, CEOsł conğdence
in lutuie giowtl lud ietuined to
neuily pie-ciisis levels.
Secuiing tle tulent to succeed: Muking
tle most ol inteinutionul mobility in
ğnunciul seivices (Novembei 2011)
Securing the talent
to succeed:
Making the most of international
mobility in financial services
www.pwc.com/financialservices
How financial services
organisations can make
sure they have the right
people with the right skills
in the right places to realise
their goals.
November 2011
Tleie's u luge
gup between
ğnunciul seivices
oigunisutions'
giowtl uspiiutions
und tle uvuilubility ol
tulent in key giowtl
locutions to muke tlis
possible. Diuwing on inteiviews witl
senioi HR executives liom leuding
inteinutionul ğnunciul seivices gioups
liom uiound tle woild, tlis iepoit
exploies tle woikloice munugement
issues ol mutcling tulent witl giowtl
objectives und low compunies cun
uddiess tlese issues us puit ol tleii
oveiull business plunning.
Tle lutuie iedeğned: Asiu Puciğc ut un
inĠection point (Novembei 2011)
As tle Knowledge
Puitnei loi tle 2011
APEC CEO Summit,
PwC conducted u
suivey ol ovei 300
business executives
on tle most piessing
business issues und
tiends. Tlis suivey exploies topics
sucl us buiiieis to tiude, tle giowtl
ol bi-luteiul tiude umong countiies
witlin tle iegion, tle iising
competition loi tulent, und tle
impuct ol innovutions in tle ğeld
ol teclnology.
Puying Tuxes 2012: Tle globul pictuie
(Novembei 2011)
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Bused on u study
ol tux iegimes in
183 economies
woildwide, tlis joint
unnuul iepoit liom
PwC und tle Woild
Bunk enubles tle
compuiison ol tux
systems liom tle point ol view ol
business. Tlis yeui's study slows tlut
tux ieloim is continuing uiound tle
woild, witl un incieusing locus on
impioving tle udministiutive uspects
ol tux systems.
www.pwc.com/ceosuivey
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