What's Keeping CEOs Awake At Night

Every year it’s interesting to hear what’s on the minds of CEOs and corporate board members. Not surprisingly, what I’m hearing is economic uncertainty and high borrowing costs. Here’s why it’s so important:

High interest rates

Central banks, especially the U.S. Federal Reserve, have kept rates elevated to combat inflation.

Result: Higher costs for debt refinancing, business expansion, and capital investment.

Sluggish Consumer Spending

Due to high inflation over the past two years and rising household debt, demand has softened for many goods and services.

Tight Credit Conditions

Banks are more cautious with lending due to rising default risks, especially in commercial real estate and small business sectors.

Planning Difficulty 

Forecasting future growth, hiring, and budgeting is harder due to unpredictable inflation, elections, global conflict, and supply chain shifts. Since the beginning of the year, corporate CapX has fallen.

The other major issues I’ve heard and been reading include:

Geopolitical Risk

Conflicts (e.g., Russia-Ukraine, Middle East, and China-Taiwan tensions) threaten global supply chains and energy costs.

Tariff battles and trade realignments affect margins and sourcing.

Labor Shortages and Skills Gaps

Many industries still struggle to fill skilled positions.

High wage demands + remote work tensions = HR complexity.

AI and Digital Transformation

Pressure to adopt AI tools for productivity and competitiveness is high.

Companies must balance innovation with concerns about ethics, data privacy, and employee disruption.

Regulatory and ESG Pressures

Increased regulation around climate reporting, data use, DEI (Diversity, Equity, Inclusion), and corporate governance

Investor demand for ESG accountability is growing, though also politically polarized.