National Survey of U.S. CFOs finds nearly one-third targeting healthcare cutbacks for their workforce
Greatest pricing pressure is employee benefits relating to healthcare and pensions
CHICAGO, Nov. 1, 2010 — In a national survey of U.S. CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, 30% are planning on reducing health care benefits, 23% are planning on reducing bonuses and 18% will be reducing stock options/equity based compensation.
A vast majority (84%) cited employee benefits (e.g., health care, pensions) as their greatest pricing pressure — up from 68% six months earlier.
Grant Thornton LLP conducted the biannual national survey from Oct. 5 through Oct. 15, 2010, with 516 U.S. CFOs and senior comptrollers participating.
| About which type(s) of pricing pressure are you most concerned? (Respondents could select more than one.) | ||
| 3/10 | 10/10 | |
| Employee benefits (e.g., health care, pensions) | 68% | 84% |
| Raw materials (e.g., food, metals) | 29% | 27% |
| Energy | 26% | 21% |
| Other | 17% | 12% |
| Company Insurance (not including healthcare) | 19% | 11% |
| Is your company making any changes to the average costs per employee in any of these employee benefit and compensation areas? | ||||||
| 3/2010 | 10/2010 | |||||
| Increase | Same | Decrease | Increase | Same | Decrease | |
| Salary raises | 15% | 53% | 32% | 21% | 65% | 13% |
| Bonuses | 8% | 47% | 44% | 14% | 63% | 23% |
| Stock options/equity based compensation | 5% | 66% | 29% | 3% | 79% | 18% |
| 401 (k) match | 5% | 74% | 21% | 5% | 84% | 10% |
| Health care benefits | 6% | 66% | 29% | 21% | 49% | 30% |
| Life insurance benefits | 2% | 86% | 11% | 5% | 86% | 9% |
| Disability benefits | 1% | 88% | 10% | 6% | 86% | 8% |
* Percentages may not total 100 due to rounding.
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