Good morning.
As President Joe Biden gave his Oval Office address last night, explaining his decision to step out of the presidential race, I thought about a theme that frequently emerges in my conversations with CEOs. Regardless of political affiliation, in companies big or small, business leaders often cite some regulatory challenge—whether it’s the FTC ban on noncompete agreements and antitrust probes or proposed taxes on unrealized capital gains and executive orders that result in volatile policy swings. With the speed of climate change, disruption and AI, some also talk about the need for regulatory clarity and guidelines.
So I was fascinated to see that 46% of respondents in our latest Fortune/Deloitte CEO Survey ranked regulation and taxes as the business areas likely to be impacted by the U.S. election. (Only 27% ranked the hot-button topic of immigration among their top three.) When asked what external issues they expect to influence or disrupt their business strategy over the next 12 months, CEOs cited geopolitical instability, inflation and regulation as the top three concerns.
This is the 13th edition of a CEO survey that we’ve done in collaboration with Deloitte since the summer of 2020. (Deloitte sponsors this newsletter.) More than 80 CEOs from the Fortune 500 and select companies responded, with the results fielded in June, before recent events like the attack on former President Donald Trump and Biden’s decision to not seek reelection.
Overall, CEOs reported mounting pessimism about their respective industries’ futures. That said, the majority have some degree of confidence in their company’s ability to navigate external disruptors. And here’s a fun fact: Almost one in five CEOs now regularly uses generative AI tools as part of their job. Change starts at the top.
You can read more about the survey results here.
More news below.
Diane Brady
diane.brady@fortune.com
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TOP NEWS
The dearth of women CEOs in Europe
Admiral Group CEO Milena Mondini-de-Focatiis and Darktrace CEO Poppy Gustafsson feature on Fortune’s new ranking highlighting high-growth, innovative European companies led by women. But the region still has a long way to go to foster female corporate leadership. Only 7% of Fortune 500 Europe companies are led by female CEOs, compared to one in ten Fortune 500 companies. Fortune
The true purpose behind return-to-office mandates
A quarter of U.S.-based C-suite executives hoped their return to office mandates would cause staff turnover, according to a survey from Bamboo HR. One in five HR professionals admitted that demanding employees work in the office was intended to force them to quit. Fortune
Will Kamala’s VP be business-friendly?
Arizona Sen. Mark Kelly is the most business-friendly of running mates reportedly under consideration by the Kamala Harris campaign. “He doesn’t support the Green New Deal, and has advocated for loosening oil drilling regulations,” says Keith Gaddie, political science professor at Texas Christian University. Contenders on the other end of the spectrum include Transportation Secretary Pete Buttigieg and his pro-consumer stance, exemplified by the $140 million fine on Southwest Airlines for its 2022 scheduling meltdown. Fortune
AROUND THE WATERCOOLER
Kendra Scott CEO Tom Nolan doesn’t like a know-it-all leader. Here’s why by Fortune Editors
Tesla Q2 earnings just revealed clear risks to its core EV business from a second Trump presidency by Christiaan Hetzner
Silicon Valley is divided over the election. Here’s which tech titans support Donald Trump—and which ones are pulling for Kamala Harris by Lila MacLellan
Who Trump might pick as Treasury Secretary—and why Jamie Dimon is a long shot by Michael Del Castillo
How a philosophy degree and years of private equity work catapulted Marco Alvera into the CEO chair at e-NG producer, Tree Energy Solutions by Peter Vanham
This edition of CEO Daily was curated by Nicholas Gordon.
