Eighty percent of the 100 CEOs surveyed for the "NYSE CEO Agenda 2006" said they spend more time on regulatory and compliance issues than five years ago. Almost 70 percent find compliance with section 404 of Sarbanes-Oxley the most demanding governance task, and while a majority of CEOs question the balance between the investment required and the resulting benefits, most CEOs agree that Sarbanes-Oxley and Exchange governance rules have contributed to board members being more informed (66 percent) and better engaged (72 percent).

"Anything that's going to regain investor confidence in Corporate America is worth it," said Richard Harrington, President & CEO of The Thomson Corporation.

The survey results, released just a few days after the third anniversary of the signing of the Sarbanes-Oxley Act, also tapped CEO opinions on global markets, human capital, globalization, shareholders, and opportunities and risks.

• Global markets. CEOs are generally optimistic in finding new markets and new products for growing their companies and serving customers. The United States is seen as the most promising market for growth, followed by Japan and Western Europe, while emerging markets present an opportunity rather than a threat.
  
  
• Human capital. Approximately half of CEOs find it easier to attract new employees, and about one-third find it easier to retain them. Workplace diversity is an increasing driver in managing human capital, and 42 percent of CEOs say their companies have diversity hiring goals.
  
  
• Globalization. When it comes to operating on the world stage, NYSE CEOs see plenty of opportunity for growth, even though a majority (55 percent) views the current global trade environment as unfavorable. More than half (53 percent) of the CEOs also said their companies have moved, are currently moving or plan to move some operations offshore.  The key, CEOs insist, is determining which functions can be done from a distance, and which need to stay at home. Among those that have moved, 64 percent say the results were "very successful."
  
  
• Shareholders. More than one-third (37 percent) of respondents said it is easier to attract investors than it was five years ago. About another third (31 percent) said it is about the same. The level of understanding among global investors is greater today than ever, and shareholder benchmarks are not necessarily the same as five years ago. Investors today focus more on traditional performance measures such as free cash flow, operating income, stock price and cash flow from operations.
  
  
• Opportunities and risks. A majority of NYSE CEOs said that management teams will have the greatest impact on company performance, followed by operational efficiency and new product development. They are concerned about regulation, energy, health care costs and the changing global economy. The greatest budget increases were expected to be in the areas of capital expenditures, energy costs and technology. More than half of the group (52 percent) expects M&A activity to increase, while the greatest revenue growth is seen coming from new products, new markets and acquisitions.

The NYSE CEO Agenda 2006 is a new initiative designed to gain the views of CEOs of NYSE-listed companies on topics impacting and shaping the current and future business climate. The study was conducted by an independent market research firm between April 2005 and June 2005.

Link to the NYSE CEO Agenda 2006 executive summary, research presentation and magazine special report: http://www.nyse.com/ceoagenda