News: Brexit's impact on C-suite: CEOs consider relocating 


Brexit's impact on C-suite: CEOs consider relocating 

With the business environment in the UK charting a new journey post the Brexit, A new KMPG survey finds CEOs of UK based companies preferring to relocate.
Brexit's impact on C-suite: CEOs consider relocating 

A recent survey by the auditing firm KPMG found that more the three-fourths of the heads of companies in Britain want or are reconsidering to relocate and move base abroad, as a result of the Brexit vote.  As many as 76% of the chief executive officers voted for shifting either their entire operations or their headquarters outside the United Kingdom.

KPMG surveyed 100 chief executives from companies in the United Kingdom that have revenues between £100 million (around Rs 870 crore) and £1 billion (approximately Rs 8700 crore). According to the study, 86% of them are confident about the growth prospects of their firm, while 69% have an optimistic outlook about the growth of the British economy over the next three years. But the growing uncertainty within the business environment has certainly affected their confidence.  Among the total CEOs surveyed in the KPMG’s first ‘100 UK CEOs’ survey, 23% said they were “definitely considering” a move as a result of the June 23 vote by Britain to leave the EU. A further 53% said they would “probably” consider a move reported Wall Street Journal.

Simon Collins, KPMG UK Chairman, commented saying “Our research has highlighted a really positive message for the UK economy.  We took a temperature check of the views of 100 CEOs from a broad range of businesses and found that they are confident about their own and the UK’s future growth prospects – a confidence reinforced in recent days by a number of important economic indicators.  However, this confidence isn’t unbridled. CEOs are reacting to the prevailing uncertainty with contingency planning.  In particular, the majority said they are considering relocating their headquarters or operations outside the UK.  Over half believe the UK’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption.”

And creating contingency plans seems necessary for CEOs as Britain's currency recently dropped to its lowest since 1985 after the result was declared, and the sterling continues to face the impact of the referendum. Britain had voted 52% to 48% to exit the EU. Out of which 72% of these CEOs had voted for the UK to remain in the European Union, KPMG added. 


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Topics: C-Suite

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