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NATION'S CEOS GIVE 'THUMBS UP' TO BUSH PROPOSALS

 NATION'S CEOS GIVE 'THUMBS UP' TO BUSH PROPOSALS
 Korn/Ferry Survey Reveals That CEOs Are Bullish on Tax Cuts;
 Divided on Health Care Proposals, Long-Term Recovery
 LOS ANGELES, Jan. 30 /PRNewswire/ -- Chief executive officers were


quick to give approval to the President's business initiatives but express ambiguity about future economic recovery, according to an overnight fax poll by Korn/Ferry International, the leading executive search firm.
 "Our survey of chief executive officers of major U.S. corporations indicates that business leaders believe that the President is taking some important steps to get the nation's economy back on track," said Richard M. Ferry, chairman and chief executive officer of Korn/Ferry International. "However, they are not convinced that the President's proposals will lead to a quick economic turnaround. Only one-half of the respondents said they felt optimistic about the nation's economic recovery after the speech.
 "At Korn/Ferry, we believe the President's proposals will accelerate the recovery. Our quarterly survey of executive hiring, which has served as a leading indicator in past cycles, convinced us that the 'white collar recession' bottomed out in the last quarter of 1991, and that recovery has indeed begun," Ferry added.
 The responding CEOs were nearly unanimous in their support of the capital gains tax cuts with 82 percent believing that this change would result in more dollars being re-invested in the economy. Only 4 percent said capital gains rate cuts would not help the economy and 14 percent were unsure. Seventy-one percent believe that President's plans for investment tax credits will be beneficial to their businesses. Eighteen percent said they would have no effect and another 11 percent were uncertain.
 "CEOs are uncertain about the appropriate direction for health care with 61 percent stating that they are unsure of the President's proposal impact on business," Ferry noted. Twenty-one percent were in favor while 18 percent opposed the President's plans.
 Forty-six percent of the surveyed CEOs said that the President's plans for cutting taxes for the middle class will spur economic recovery. Thirty-six percent disagreed while 18 percent were unsure.
 Over all, 41 percent reported that they feel more optimistic about the economic recovery after hearing the President's speech, while 33 percent said they did not. Twenty-six percent indicated that they were unsure.
 Respondents expressed skepticism about both the President's and the Congress' proposals. One CEO commented that, "Action has been taken, but it's too little, and more importantly, too late." Another said that "government action will not do much in the short term."
 Other CEOs took a wait-and-see position, saying that specific programs would tell the story.
 Headquartered in New York and Los Angeles, Korn/Ferry International specializes in management searches at the senior level. The firm maintains 16 offices in major U.S. cities with a total of 43 offices worldwide in key business centers throughout North America, Latin America, Europe, Asia/Pacific and Australia. In addition to its executive recruiting services, Korn/Ferry provides related consultation services in executive compensation and organizational planning.
 -0- 1/30/92
 /CONTACT: Francie Murphy of Casey & Sayre, 310-457-3676, for Korn/Ferry International/ CO: Korn/Ferry International ST: California IN: SU:


AL-CH -- LA017 -- 5156 01/30/92 10:41 EST
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Publication:PR Newswire
Date:Jan 30, 1992
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