TEC International released results of a Special Edition TEC Index "CEO Views on the CEO Crisis," a compilation of responses from CEOs of small to mid-size companies, in which nearly 800 chief executives nationwide shared their views of recent corporate accounting scandals.

 

According to the survey, which took place the week of July 8, 69 percent said corporate CEOs are directly responsible for recent accounting scandals, and 50 percent believe current accounting and securities regulations are adequate, but simply need to be followed and enforced.

 

The respondents also predicted more scandals and a continued negative impact on the U.S. economy. While 82 percent of CEOs surveyed believe the recent wave of business financial scandals is the work of a few highly visible CEOs and does not represent the behavior of the vast majority of CEOs, 75 percent of CEOs expect to see many more examples of corporate misconduct this year.

 

Despite recent events, the majority of CEOs surveyed -- more than 68 percent -- agree that the global economy still views the United States as the standard-setter for capital markets; however, 82 percent of CEOs believe the current wave of business scandals has significantly set back the U.S. economic recovery.

 

Regarding corporate reform, 93 percent of CEOs believe no matter how much regulation is in place, it is the integrity and the values of the leadership that keeps behavior ethical in a company. Also, 82 percent of CEOs surveyed agree with implementing harsher penalties, jail time and tougher prosecution for those involved in financial abuses. For example, 84 percent of CEOs think that corporate officers who benefit from false accounting should be required to forfeit all money gained and barred for life from serving as an executive or board member.

 

Interestingly, only 17 percent of CEOs agree that firing SEC chief Harvey Pitt would be effective in preventing future corporate abuses.

 

In addition, 61 percent of CEOs surveyed support strengthening boards of directors with more involved, independent and knowledgeable directors, while 52 percent of CEOs support requiring corporate officers to sign a legally binding standard code of ethics. Not surprisingly, 91 percent of respondents believe celebrity CEOs, like Martha Stewart, should do jail time if found guilty of serious securities or accounting violations, just like any other CEO.