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2014
CEOSURVEYB U S I N E S S C L I M A T E
SILICON VALLEY
SILICON VALLEY LEADERSHIP GROUP 01
The 2014 CEO Business Climate Survey is produced by the Silicon Valley Leadership Group.
2014
CEOSURVEYB U S I N E S S C L I M A T E
SILICON VALLEY
The Silicon Valley Leadership Group stands as the key conduit between Valley companies and the region. Orga-nized by Hewlett-Packard CEO David Packard who called together three dozen companies in 1978, the Leader-ship Group now consists of nearly 400 companies. Today one out of every three private sector employees works for a member of the Silicon Valley Leadership Group. As of 2014, the group’s members generate a combined income of $3 trillion, three times the amount of 2007, and an amount slightly higher than the Gross Domestic Product of France and just behind Germany. These numbers reflect the presence of member companies in all 50 states and 160 countries. Few organizations can tout such largesse or success. The 2014 survey also contains the responses from 222 of the organization’s 392 members, or 57 percent—a staggering number for such an inquiry.
The SVLG survey respondents realize that in a competitive environment, today’s leaders can be tomorrow’s followers. They also realize that issues in the Valley today will in all likelihood impact the nation in the future. That’s why the Leadership Group membership has approached the tough issues in the Valley not only in terms of identi-fying them but by also seeking solutions to improve conditions for the workforce and the economy. The data from the current survey continues the Leadership Group’s cautious optimism of recent years, an optimism that is predicated on the region dealing with emerging issues before they become more serious problems.
The Governor is right. No state approaches the innovative character of California, and no region defines that energy more than Silicon Valley. Indeed, the state’s comeback has been hitched to the Valley’s success. Recent surveys show Silicon Valley is No. 1 among the 358 metropolitan areas in patent output,1 No. 1 in state job creation,2 No. 1 in
venture capital investment3 and the No. 1 economy in the nation4. New York has “Silicon Alley,” Oregon has “Silicon Forest,” Massachusetts has “Silicon Sandbar,” Chapel Hill has “The New Silicon Valley,” and the seemingly endless list of would-be emulators goes on and on in regions throughout the United States and around the world. All are areas of interesting activity, yet none come close to the prowess of Silicon Valley—a region truly without parallel thanks to the rich combination of university talent, venture capital, endless individual curiosity and forward thinking companies.
That the state’s economy has rebounded may be a surprise to some, but to industry leaders in the Valley the development hardly qualifies as “news.” Last year, 46 percent of respondents to the CEO survey forecasted that their companies would add jobs. In fact, 62 percent added jobs. In the 2014 CEO survey, respondents are even more positive about the economy than they were in 2013. For the coming year, 59 percent of the companies anticipate that they will grow jobs. Once again the immediate future looks bright, although respondents are all too aware of the exceedingly cyclical nature of the Valley’s economy and the need to stay a step ahead of the competition.
02 CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP 03
California Governor
Jerry BrownState of the Union Speech
January 22, 2014
Analysis by:Larry N. Gerston, Ph.D.,Professor of Political Science,San Jose State University
We are also the state of innovation,of Silicon Valley and more venturecapital investment than any other
state — by far.
Overview
The Silicon Valley Leadership Group stands as the key conduit between Valley companies and the region. Orga-nized by Hewlett-Packard CEO David Packard who called together three dozen companies in 1978, the Leader-ship Group now consists of nearly 400 companies. Today one out of every three private sector employees works for a member of the Silicon Valley Leadership Group. As of 2014, the group’s members generate a combined income of $3 trillion, three times the amount of 2007, and an amount slightly higher than the Gross Domestic Product of France and just behind Germany. These numbers reflect the presence of member companies in all 50 states and 160 countries. Few organizations can tout such largesse or success. The 2014 survey also contains the responses from 222 of the organization’s 392 members, or 57 percent—a staggering number for such an inquiry.
The SVLG survey respondents realize that in a competitive environment, today’s leaders can be tomorrow’s followers. They also realize that issues in the Valley today will in all likelihood impact the nation in the future. That’s why the Leadership Group membership has approached the tough issues in the Valley not only in terms of identi-fying them but by also seeking solutions to improve conditions for the workforce and the economy. The data from the current survey continues the Leadership Group’s cautious optimism of recent years, an optimism that is predicated on the region dealing with emerging issues before they become more serious problems.
The Governor is right. No state approaches the innovative character of California, and no region defines that energy more than Silicon Valley. Indeed, the state’s comeback has been hitched to the Valley’s success. Recent surveys show Silicon Valley is No. 1 among the 358 metropolitan areas in patent output,1 No. 1 in state job creation,2 No. 1 in
venture capital investment3 and the No. 1 economy in the nation4. New York has “Silicon Alley,” Oregon has “Silicon Forest,” Massachusetts has “Silicon Sandbar,” Chapel Hill has “The New Silicon Valley,” and the seemingly endless list of would-be emulators goes on and on in regions throughout the United States and around the world. All are areas of interesting activity, yet none come close to the prowess of Silicon Valley—a region truly without parallel thanks to the rich combination of university talent, venture capital, endless individual curiosity and forward thinking companies.
That the state’s economy has rebounded may be a surprise to some, but to industry leaders in the Valley the development hardly qualifies as “news.” Last year, 46 percent of respondents to the CEO survey forecasted that their companies would add jobs. In fact, 62 percent added jobs. In the 2014 CEO survey, respondents are even more positive about the economy than they were in 2013. For the coming year, 59 percent of the companies anticipate that they will grow jobs. Once again the immediate future looks bright, although respondents are all too aware of the exceedingly cyclical nature of the Valley’s economy and the need to stay a step ahead of the competition.
02 CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP 03
California Governor
Jerry BrownState of the Union Speech
January 22, 2014
Analysis by:Larry N. Gerston, Ph.D.,Professor of Political Science,San Jose State University
We are also the state of innovation,of Silicon Valley and more venturecapital investment than any other
state — by far.
Overview
Job Growth•Added jobs in 2013 - More than 60 percent. 50
percent in 2012.
•Subtracted jobs in 2013 - 9.5 percent. 16 percent in 2012.
•Expect to add jobs in 2014 - 59 percent. 46 percent in 2013.
•Expect to subtract jobs in 2014 - 4 percent. 14 percent in 2013.
Other Observations•Top challenges for businesses and employees:
Housing and transportation are the No. 1 and No. 3 challenges for employers and employees.
•Moved some employees out of state in 2013: Nearly one of five members (19 percent). About half of those cited reduced labor costs and/or a more available labor force as the most com-pelling reason for the shift.
•Physical presence in other states: More than 70 percent, with Texas, New York and Massachu-setts cited most often.
•Affordable Care Act: 43 percent of those responding believe the new policy should remain in place; 28 percent believe it should be repealed.
•California state budget surplus: Nearly 70 percent of respondents are most interested in building state reserves to promote more finan-cial stability.
Strengths of Silicon Valley1. Access to skilled labor (#1 in 2013)
2. Entrepreneurial mindset (#2 in 2013)
3. Proximity to customers and competitors (#3 in 2013)
4. World class universities (#4 in 2013)
5. Climate/weather (access to venture capital was #5 in 2013)
Business Challenges (18 categories)1. High housing costs (#1 in 2013)
2. Employee recruitment/retention (#2 in 2013)
3. Traffic congestion (#4 in 2013)
4. Business regulations (#3 in 2013)
5. Business taxes (#5 in 2013)
Top 3 cost of living challenges for employees and their families (8 categories)
1. Housing costs (#1 in 2013)
2. High taxes (#2 in 2013)
3. Traffic congestion (#3 in 2013)
Recommendations to local government (11 categories)
1. Ease local street and road congestion (#5 in 2013)
2. Improve K-12 public education (#1 in 2013)
3. Approve more affordable home develop-ments (#3 in 2013)
4. Reduce public pension costs (#2 in 2013)
5. Streamline permit approval process (#4 in 2013)
Recommendations to state government (18 categories)
1. Invest in traffic relief/transportation improve-ments (#2 in 2013)
2. Strengthen K-12 education funding (#1 in 2013)
3. Further reduce public pension costs (#4 in 2013)
4. Help create more affordable housing (#7 in 2013)
5. Enhance and make permanent the state research and development tax credit (#3 in 2013)
Recommendations to federal government (18 categories)
1. Comprehensive tax reform (#1 in 2013)
2. STEM (science, technology, engineering and math) education to develop domestic talent (#4 in 2013)
3. H1-B visa/green card reform (#2 in 2013)
4. Reduce federal debt and deficit (#3 in 2013)
5. Extend and make permanent R and D tax credit (#5 in 2013)
Between December 11, 2013 and January 16, 2014 the Silicon Valley Leadership Group conducted its 11th annual CEO Business Climate Survey and 222 executives responded - more than half of the Leadership Group membership and up from 177 last year. In keeping with previous themes, the survey questions inquired about the region’s general business climate, including employee living and working conditions, business challenges and opportunities for the coming year, current issues of concern to the Leadership Group and Silicon Valley residents, and recent public policy commitments. The survey also asked respondents to project their sense of the economy in the coming year and for recommendations on how governments might contribute to improve the Valley’s condition.
Which of the following most closelydescribes your industry sector?
Energy/CleanTech/Utilities
222210%
Financial/Professional/Venture Capital
383817%
High-Tech Manufacturing/Semiconductor
353516%
Internet/Communications
232310%
Software
313114%
Education/University
1414
1+1=2
6%
Other
17178%
Social Media
221%
Health Care/Bio-tech/Med-tech
17178%
Transportation
11115%
Gen. Manufacturing/Aerospace/Defense
12125%
04 CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP 05
the SurveyAbout FindingsKey
Job Growth•Added jobs in 2013 - More than 60 percent. 50
percent in 2012.
•Subtracted jobs in 2013 - 9.5 percent. 16 percent in 2012.
•Expect to add jobs in 2014 - 59 percent. 46 percent in 2013.
•Expect to subtract jobs in 2014 - 4 percent. 14 percent in 2013.
Other Observations•Top challenges for businesses and employees:
Housing and transportation are the No. 1 and No. 3 challenges for employers and employees.
•Moved some employees out of state in 2013: Nearly one of five members (19 percent). About half of those cited reduced labor costs and/or a more available labor force as the most com-pelling reason for the shift.
•Physical presence in other states: More than 70 percent, with Texas, New York and Massachu-setts cited most often.
•Affordable Care Act: 43 percent of those responding believe the new policy should remain in place; 28 percent believe it should be repealed.
•California state budget surplus: Nearly 70 percent of respondents are most interested in building state reserves to promote more finan-cial stability.
Strengths of Silicon Valley1. Access to skilled labor (#1 in 2013)
2. Entrepreneurial mindset (#2 in 2013)
3. Proximity to customers and competitors (#3 in 2013)
4. World class universities (#4 in 2013)
5. Climate/weather (access to venture capital was #5 in 2013)
Business Challenges (18 categories)1. High housing costs (#1 in 2013)
2. Employee recruitment/retention (#2 in 2013)
3. Traffic congestion (#4 in 2013)
4. Business regulations (#3 in 2013)
5. Business taxes (#5 in 2013)
Top 3 cost of living challenges for employees and their families (8 categories)
1. Housing costs (#1 in 2013)
2. High taxes (#2 in 2013)
3. Traffic congestion (#3 in 2013)
Recommendations to local government (11 categories)
1. Ease local street and road congestion (#5 in 2013)
2. Improve K-12 public education (#1 in 2013)
3. Approve more affordable home develop-ments (#3 in 2013)
4. Reduce public pension costs (#2 in 2013)
5. Streamline permit approval process (#4 in 2013)
Recommendations to state government (18 categories)
1. Invest in traffic relief/transportation improve-ments (#2 in 2013)
2. Strengthen K-12 education funding (#1 in 2013)
3. Further reduce public pension costs (#4 in 2013)
4. Help create more affordable housing (#7 in 2013)
5. Enhance and make permanent the state research and development tax credit (#3 in 2013)
Recommendations to federal government (18 categories)
1. Comprehensive tax reform (#1 in 2013)
2. STEM (science, technology, engineering and math) education to develop domestic talent (#4 in 2013)
3. H1-B visa/green card reform (#2 in 2013)
4. Reduce federal debt and deficit (#3 in 2013)
5. Extend and make permanent R and D tax credit (#5 in 2013)
Between December 11, 2013 and January 16, 2014 the Silicon Valley Leadership Group conducted its 11th annual CEO Business Climate Survey and 222 executives responded - more than half of the Leadership Group membership and up from 177 last year. In keeping with previous themes, the survey questions inquired about the region’s general business climate, including employee living and working conditions, business challenges and opportunities for the coming year, current issues of concern to the Leadership Group and Silicon Valley residents, and recent public policy commitments. The survey also asked respondents to project their sense of the economy in the coming year and for recommendations on how governments might contribute to improve the Valley’s condition.
Which of the following most closelydescribes your industry sector?
Energy/CleanTech/Utilities
222210%
Financial/Professional/Venture Capital
383817%
High-Tech Manufacturing/Semiconductor
353516%
Internet/Communications
232310%
Software
313114%
Education/University
1414
1+1=2
6%
Other
17178%
Social Media
221%
Health Care/Bio-tech/Med-tech
17178%
Transportation
11115%
Gen. Manufacturing/Aerospace/Defense
12125%
04 CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP 05
the SurveyAbout FindingsKey
ClimateThe economy in Silicon Valley is in the fourth year of significant growth. As in the past, it has become the economic juggernaut of the state’s rebound. Data from the 2013 CEO survey showed employee growth at a pace slightly lower than 2012. Now once again employers are hiring at a torrid pace according to data from the 2014 survey, with 59 percent expecting to add jobs and hardly any company reducing the size of its labor force. This trend speaks to the demand for an educated, trained labor force, which is repeatedly cited as a major concern for Valley employers. All this is great news, yet it underscores the importance of housing, transportation, and education - all elements that provide the fundamental necessities for companies and their employees to continue the Valley’s growth.
06 07
2013
2012
2011
2010
87%
86%
84%86%
2009
2008
2007
2006
99%
96%
99%97%
What are the top cost of livingchallenges in Silicon Valley for
workers and families?
90%Housing Costs
58%54%
Traffic congestion
High taxes
25%Child care
22%Health care
Percent of responderswho chose housing as the top
cost challenge from previous years.
Although they are of paramount value to the Valley, Leadership Group companies realize they are only part of the total community tapestry. The Valley, like elsewhere, is a multifaceted organism of people, businesses, governments, and much more. Central to this complex arrangement are the employees of the companies that make the Valley hum. Without the participation of a sophisticated and malleable labor force, the best companies with the best products could not survive.
Bearing in mind the value of the workforce, the CEO Business Climate Survey asked respondents to identify the three most important cost of living chal-lenges to their employees and their families.
As with the past, the high cost of housing remains the No. 1 issue. It has been the highest ranking concern since the earliest days of the survey. Hous-ing also draws the attention of almost all the respondents, with 90 percent weighing in. Simply put, companies can’t function well without employees, and employees need affordable, adequate housing for their families. As the economy gains steam yet again in the Valley, the affordable housing shortage becomes even more apparent.
Since January 1, 2013, have you added, stayedthe same or subtracted jobs in Silicon Valley?
Subtracted jobsStayed the Same
Added jobs
0% 10 20 30 40 50 60 70%
2011
2012
2010
2009
62% Added
9% Subtracted
2013
Beginning January, 2014, doesyour company expect to add jobs,
subtract jobs, or stay the same in Silicon Valley?
59% Add
Stay thesame
4% Subtract
2014
30%
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Business
Silicon Valley is the only place where you can fail
over and over again and still end up a winner.
LIFEQuality of
ClimateThe economy in Silicon Valley is in the fourth year of significant growth. As in the past, it has become the economic juggernaut of the state’s rebound. Data from the 2013 CEO survey showed employee growth at a pace slightly lower than 2012. Now once again employers are hiring at a torrid pace according to data from the 2014 survey, with 59 percent expecting to add jobs and hardly any company reducing the size of its labor force. This trend speaks to the demand for an educated, trained labor force, which is repeatedly cited as a major concern for Valley employers. All this is great news, yet it underscores the importance of housing, transportation, and education - all elements that provide the fundamental necessities for companies and their employees to continue the Valley’s growth.
06 07
2013
2012
2011
2010
87%
86%
84%86%
2009
2008
2007
2006
99%
96%
99%97%
What are the top cost of livingchallenges in Silicon Valley for
workers and families?
90%Housing Costs
58%54%
Traffic congestion
High taxes
25%Child care
22%Health care
Percent of responderswho chose housing as the top
cost challenge from previous years.
Although they are of paramount value to the Valley, Leadership Group companies realize they are only part of the total community tapestry. The Valley, like elsewhere, is a multifaceted organism of people, businesses, governments, and much more. Central to this complex arrangement are the employees of the companies that make the Valley hum. Without the participation of a sophisticated and malleable labor force, the best companies with the best products could not survive.
Bearing in mind the value of the workforce, the CEO Business Climate Survey asked respondents to identify the three most important cost of living chal-lenges to their employees and their families.
As with the past, the high cost of housing remains the No. 1 issue. It has been the highest ranking concern since the earliest days of the survey. Hous-ing also draws the attention of almost all the respondents, with 90 percent weighing in. Simply put, companies can’t function well without employees, and employees need affordable, adequate housing for their families. As the economy gains steam yet again in the Valley, the affordable housing shortage becomes even more apparent.
Since January 1, 2013, have you added, stayedthe same or subtracted jobs in Silicon Valley?
Subtracted jobsStayed the Same
Added jobs
0% 10 20 30 40 50 60 70%
2011
2012
2010
2009
62% Added
9% Subtracted
2013
Beginning January, 2014, doesyour company expect to add jobs,
subtract jobs, or stay the same in Silicon Valley?
59% Add
Stay thesame
4% Subtract
2014
30%
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Business
Silicon Valley is the only place where you can fail
over and over again and still end up a winner.
LIFEQuality of
ChallengesA sound economic infrastructure is the foundation for Silicon Valley’s success. “Infrastructure” refers to the various elements that support the community to permit consistent growth and widespread prosperity. Silicon Valley has its infrastructure chal-lenges like many other communities. Unfortunately, many of the challenges have persisted for years, threatening the future of the region. Given the competition from other regions, it is imperative that these challenges are identified and resolved so the community may continue to thrive.
As in the past, high housing costs dominate respon-dent concerns. In the 2014 survey, 72 percent cited this issue as the most important challenge, up from an already high 65 percent in 2013. Employee recruitment and retention costs drew the replies from 65 percent, followed by traffic congestion (58 percent), business regulations (45 percent), and business taxes (42 percent).
With respect to business regulations, the partici-pants were asked to identify the most egregious problems. Similar to 2013, the California Environ-mental Quality Act (CEQA) captured the concern of 46 percent. This worry clearly outdistanced wage and hour issues (38 percent), the Sarbanes-Oxley Act (34 percent), and the Dodd-Frank Act (31 percent) as well as the requirements of California’s AB 32 (19 percent). All of these concerns focused on either state or federal legisl-ation, showing the need for the Leadership Group and its members to continue to make themselves heard at these levels of government
08 09
42%
What are the top 5 businesschallenges in Silicon Valley?
72% 45%Housing costsFor employees
Business regulations
Business taxes
65%Employee recruitment/
retension costs
$
58%Traffic congestionTraffic congestion
What are the top 5 businessregulation challenges
in Silicon Valley?
46%
38%Wage and hour issues
CEQA
$$$
31%Dodd-Frank Act
34%Sarbanes-Oxley Act
19%AB 32 requirements
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
IN SILICON VALLEYStrengthsSilicon Valley towers above other regions because of its unique qualities, environment and strengths that are unparalleled elsewhere. This year, our generally gorgeous weather cracked the top five list of strengths, underscoring a benefit that people from other parts of the country and world truly cherish. It helps the Valley continue to be a magnet for innovation, venture capital, and a highly skilled workforce that, combined with first-rate university researchers, gives the region great leverage over others. This convergence is reflected by the survey respondents when asked about the benefits and strengths of doing business in Silicon Valley. A full 80 percent cited access to skilled labor as the most important factor, up from 71 percent just a year ago. Nearly as many, 76 percent pointed to the entrepreneurial mindset of the region, also up sharply from a year ago. Proxim-ity to customers and competitors received mention from 53 percent. The appreciation of world class universities attracted the responses of 50 percent, up from 27 percent in 2013. Climate and weather was cited by 44 percent as a benefit. It’s important to recognize that of the 11 possible response categories, the highest four responses focused on the unequalled fusion of intellectual prowess and sharply honed skills.
44%
What are the top strengths ofdoing business in Silicon Valley?
53%Proximity to customers
and competitors
50%World class universities
Climate and weather
76%Entrepreneurial mindset
80%Access to
Skilled Labor
Challenges & Strengths
Silicon Valley provides the right access to talent and capital to
create maximum opportunity for entrepreneurs and investors.
ChallengesA sound economic infrastructure is the foundation for Silicon Valley’s success. “Infrastructure” refers to the various elements that support the community to permit consistent growth and widespread prosperity. Silicon Valley has its infrastructure chal-lenges like many other communities. Unfortunately, many of the challenges have persisted for years, threatening the future of the region. Given the competition from other regions, it is imperative that these challenges are identified and resolved so the community may continue to thrive.
As in the past, high housing costs dominate respon-dent concerns. In the 2014 survey, 72 percent cited this issue as the most important challenge, up from an already high 65 percent in 2013. Employee recruitment and retention costs drew the replies from 65 percent, followed by traffic congestion (58 percent), business regulations (45 percent), and business taxes (42 percent).
With respect to business regulations, the partici-pants were asked to identify the most egregious problems. Similar to 2013, the California Environ-mental Quality Act (CEQA) captured the concern of 46 percent. This worry clearly outdistanced wage and hour issues (38 percent), the Sarbanes-Oxley Act (34 percent), and the Dodd-Frank Act (31 percent) as well as the requirements of California’s AB 32 (19 percent). All of these concerns focused on either state or federal legisl-ation, showing the need for the Leadership Group and its members to continue to make themselves heard at these levels of government
08 09
42%
What are the top 5 businesschallenges in Silicon Valley?
72% 45%Housing costsFor employees
Business regulations
Business taxes
65%Employee recruitment/
retension costs
$
58%Traffic congestionTraffic congestion
What are the top 5 businessregulation challenges
in Silicon Valley?
46%
38%Wage and hour issues
CEQA
$$$
31%Dodd-Frank Act
34%Sarbanes-Oxley Act
19%AB 32 requirements
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
IN SILICON VALLEYStrengthsSilicon Valley towers above other regions because of its unique qualities, environment and strengths that are unparalleled elsewhere. This year, our generally gorgeous weather cracked the top five list of strengths, underscoring a benefit that people from other parts of the country and world truly cherish. It helps the Valley continue to be a magnet for innovation, venture capital, and a highly skilled workforce that, combined with first-rate university researchers, gives the region great leverage over others. This convergence is reflected by the survey respondents when asked about the benefits and strengths of doing business in Silicon Valley. A full 80 percent cited access to skilled labor as the most important factor, up from 71 percent just a year ago. Nearly as many, 76 percent pointed to the entrepreneurial mindset of the region, also up sharply from a year ago. Proxim-ity to customers and competitors received mention from 53 percent. The appreciation of world class universities attracted the responses of 50 percent, up from 27 percent in 2013. Climate and weather was cited by 44 percent as a benefit. It’s important to recognize that of the 11 possible response categories, the highest four responses focused on the unequalled fusion of intellectual prowess and sharply honed skills.
44%
What are the top strengths ofdoing business in Silicon Valley?
53%Proximity to customers
and competitors
50%World class universities
Climate and weather
76%Entrepreneurial mindset
80%Access to
Skilled Labor
Challenges & Strengths
Silicon Valley provides the right access to talent and capital to
create maximum opportunity for entrepreneurs and investors.
In the 21st century economy, businesses and governments are more than ever the two most important centers for dealing with society’s major issues. Sometimes, the two come together as one, working effectively toward resolving the same objective. On other occasions, the two spheres may not be in alignment, often because of inadequate communication. In these circumstances, organizations such as the Silicon Valley Leadership Group play an important role in helping elected officials understand economic and social issues through a different lens. Every year, various Leadership Group member CEO delegations travel to Washington, D.C. and Sacra-mento to provide vital information and context on key policy issues for national and state leaders. Without such insightful input, policy makers would be missing valuable data and assessments.
LegislationState laws and regulations impact Silicon Valley companies and employees in numerous ways. From K-12 public education funding to transportation corridors to environmental rules and regulations, the actions of state policy makers affect the abilities of companies to thrive and, in the process, provide badly needed revenues for the state treasury. As in the past, this year the CEO Business Climate Survey asked participants to evaluate the work of the state legislature, Governor and regulatory authorities on a 1-to-5 scale, with 1 being the best and 5 being the worst. With respect to the 2014 survey, 58 percent believed that statewide legislation is on the wrong track (categories 4 and 5 combined), up slightly from 53 percent in 2013. Seventeen percent believed that the state is on the right track (categories 1 and 2 combined), comparable to 16 percent who provided such approval in 2013.
2%
15%
26%
33%
25%
1
2
3
4
5
Righ
tW
rong
Statewide legislation is on the right track (1) or thewrong track (5) in creating a healthy business climate?
2009 2010 2011 2012 2013
RegulationsGiven the sweeping power of regulatory authority in California, survey participants were asked to evaluate whether the state and its lawmakers are on the right or wrong track when it comes to creating a healthy business climate. More than three-fifths stated that statewide regulations are on the wrong track, down slightly from 66 percent in 2013. Thirteen percent declared that statewide regulations are on the right track, a nudge upward from 9 percent in 2013. Despite these slight changes, the overall sentiment toward regulatory policymaking in California remains negative.
1%
12%
26%
30%
30%
1
2
3
4
5
Righ
tW
rong
Statewide regulations are on the right track (1) orwrong track (5) in creating a healthy business climate?
2009 2010 2011 2012 2013
10 11CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
01020304050
0
10
20
30
40
50
OFFICIALSElected
In the 21st century economy, businesses and governments are more than ever the two most important centers for dealing with society’s major issues. Sometimes, the two come together as one, working effectively toward resolving the same objective. On other occasions, the two spheres may not be in alignment, often because of inadequate communication. In these circumstances, organizations such as the Silicon Valley Leadership Group play an important role in helping elected officials understand economic and social issues through a different lens. Every year, various Leadership Group member CEO delegations travel to Washington, D.C. and Sacra-mento to provide vital information and context on key policy issues for national and state leaders. Without such insightful input, policy makers would be missing valuable data and assessments.
LegislationState laws and regulations impact Silicon Valley companies and employees in numerous ways. From K-12 public education funding to transportation corridors to environmental rules and regulations, the actions of state policy makers affect the abilities of companies to thrive and, in the process, provide badly needed revenues for the state treasury. As in the past, this year the CEO Business Climate Survey asked participants to evaluate the work of the state legislature, Governor and regulatory authorities on a 1-to-5 scale, with 1 being the best and 5 being the worst. With respect to the 2014 survey, 58 percent believed that statewide legislation is on the wrong track (categories 4 and 5 combined), up slightly from 53 percent in 2013. Seventeen percent believed that the state is on the right track (categories 1 and 2 combined), comparable to 16 percent who provided such approval in 2013.
2%
15%
26%
33%
25%
1
2
3
4
5
Righ
tW
rong
Statewide legislation is on the right track (1) or thewrong track (5) in creating a healthy business climate?
2009 2010 2011 2012 2013
RegulationsGiven the sweeping power of regulatory authority in California, survey participants were asked to evaluate whether the state and its lawmakers are on the right or wrong track when it comes to creating a healthy business climate. More than three-fifths stated that statewide regulations are on the wrong track, down slightly from 66 percent in 2013. Thirteen percent declared that statewide regulations are on the right track, a nudge upward from 9 percent in 2013. Despite these slight changes, the overall sentiment toward regulatory policymaking in California remains negative.
1%
12%
26%
30%
30%
1
2
3
4
5
Righ
tW
rong
Statewide regulations are on the right track (1) orwrong track (5) in creating a healthy business climate?
2009 2010 2011 2012 2013
10 11CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
01020304050
0
10
20
30
40
50
OFFICIALSElected
The GovernorAt the statewide level, evaluation of the Governor’s policy making received the highest marks from survey respondents, not only with respect to the other two areas of authority but also in terms of his own improving performance. In the 2014 survey, 47 percent gave Governor Brown high marks, compared with 26 percent who said otherwise. This sentiment reflects an upward trend over the past few years. In 2013, 35 percent responded that the Governor was on the right track; in 2012, 29 percent agreed that the Governor was on the right track. The relatively positive evaluation of Governor Brown in 2014 is the highest since 2010, the last year of the Schwar-zenegger administration.
18%
29%
28%
15%
11%
1
2
3
4
5
Righ
tW
rong
The Governor is on the right track (1) orwrong track (5) in creating a healthy business climate?
0%
10
20
30
40
50%2009 2010 2011 20122012 2013
GovernmentIMPROVING
What changes could localgovernment undertake to improve the business
climate for your company?
52%Ease local
street and roadcongestion
38%Reduce public pension costs
$
48%Approve more affordable
home developments
33%Streamline permitapproval process
49%K-12 education
1+1=2
Given the immense value of Silicon Valley companies to the economy, survey respondents were asked to select the government changes that would be most beneficial to improving the business climate and continuing the region’s successful productivity. The questions were asked with respect to policy making at the local, state, and federal levels.
As the Silicon Valley continues to prosper attention must be directed
toward infrastructure - roads, transportation, housing, etc.
12 13CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
At the Local LevelIn a departure from past surveys, respondents focused on the infrastructure of the Valley as the area in need of greatest attention from local public policy makers. Specifically, 52 percent cited easing local street and road congestion as a crucial need. The 13 percent increase is in all likelihood a bi-product of the Valley’s continued resurgence, but nonetheless one that must be addressed to maintain that success. K-12 public education received the second highest support with 49 percent. The 10 point drop from 2013 may reflect the dedication by the Governor and others to the passage of Proposition 30 in November 2012, which adds about $7 billion annually to public education for a seven year period. Still, nearly half the respondents believe that more must be done. More affordable housing was cited by 48 percent, up from 2013 and, no doubt, a growing concern because of the housing squeeze associated with a lack of supply to meet the demand. Reducing public pension costs and streamlining of the permit approval process received support from 38 percent and 33 percent respectively. Of the 11 possible answers to this question, the first five responses were far ahead of the other categories. For the survey participants, the infrastructure elements of education, housing and transportation clearly stand out as pressing needs.
The GovernorAt the statewide level, evaluation of the Governor’s policy making received the highest marks from survey respondents, not only with respect to the other two areas of authority but also in terms of his own improving performance. In the 2014 survey, 47 percent gave Governor Brown high marks, compared with 26 percent who said otherwise. This sentiment reflects an upward trend over the past few years. In 2013, 35 percent responded that the Governor was on the right track; in 2012, 29 percent agreed that the Governor was on the right track. The relatively positive evaluation of Governor Brown in 2014 is the highest since 2010, the last year of the Schwar-zenegger administration.
18%
29%
28%
15%
11%
1
2
3
4
5
Righ
tW
rong
The Governor is on the right track (1) orwrong track (5) in creating a healthy business climate?
0%
10
20
30
40
50%2009 2010 2011 20122012 2013
GovernmentIMPROVING
What changes could localgovernment undertake to improve the business
climate for your company?
52%Ease local
street and roadcongestion
38%Reduce public pension costs
$
48%Approve more affordable
home developments
33%Streamline permitapproval process
49%K-12 education
1+1=2
Given the immense value of Silicon Valley companies to the economy, survey respondents were asked to select the government changes that would be most beneficial to improving the business climate and continuing the region’s successful productivity. The questions were asked with respect to policy making at the local, state, and federal levels.
As the Silicon Valley continues to prosper attention must be directed
toward infrastructure - roads, transportation, housing, etc.
12 13CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
At the Local LevelIn a departure from past surveys, respondents focused on the infrastructure of the Valley as the area in need of greatest attention from local public policy makers. Specifically, 52 percent cited easing local street and road congestion as a crucial need. The 13 percent increase is in all likelihood a bi-product of the Valley’s continued resurgence, but nonetheless one that must be addressed to maintain that success. K-12 public education received the second highest support with 49 percent. The 10 point drop from 2013 may reflect the dedication by the Governor and others to the passage of Proposition 30 in November 2012, which adds about $7 billion annually to public education for a seven year period. Still, nearly half the respondents believe that more must be done. More affordable housing was cited by 48 percent, up from 2013 and, no doubt, a growing concern because of the housing squeeze associated with a lack of supply to meet the demand. Reducing public pension costs and streamlining of the permit approval process received support from 38 percent and 33 percent respectively. Of the 11 possible answers to this question, the first five responses were far ahead of the other categories. For the survey participants, the infrastructure elements of education, housing and transportation clearly stand out as pressing needs.
At the Federal LevelIncreasingly, the needs of companies and govern-ments are intertwined; each benefits from the cooperation of the other in the 21st century global economic environment. To that end, the CEO Business Climate Survey asked participants to iden-tify from 18 categories the five most important federal government changes that would help the Valley thrive. Comprehensive tax reform attracted the responses of 58 percent of the participants. This sentiment was almost matched by the concern for STEM (science, technology, engineering and math) education programs, which received responses from 56 percent. H1-B visa and green card reforms were mentioned by 49 percent of the respondents, again reflecting the apprehension regarding the workforce of the future. Managing the federal debt and national deficit drew replies from 40 percent of the participants, followed by the need to expand and make permanent the Research and Development tax credit, which received replies from 37 percent. Clearly, the over-all themes with respect to federal assistance revolved around a more secure, predictable economic environment along with development and maintenance of a reliable workforce.
At the State LevelSurvey participants were also asked to focus on changes made at the state level that would improve the overall climate for Valley companies. Investing in traffic relief and transportation improvements received support from 55 percent, up from 45 percent in 2013. The reason for this concern is simple: without the easy flow of traffic, employees can’t get to work and commerce can’t move, both of which can reduce business produc-tivity. Strengthening K-12 public education garnered support from slightly more than 37 percent of the participants—again, a reflection of continued concern for the welfare of employee families as well as the future preparation of the Valley’s workforce. Respondents pointed to the need for additional reductions of public pension costs as their third most important concern, with 36 percent weighing in on this proposition. More affordable housing followed closely with votes from 35 percent, while enhancing and making perma-nent the state Research and Development tax credit rounded out the top five with votes from 33 percent.
What changes could stategovernment undertake to improve the business
climate for your company?
55%invest in traffic
relief/transportationimprovements
37%Strengthen K-12
education funding
36%Further reduce
public pension costs
1+1=2
$
35%Help create more
affordable housing
33%Enhance and
make permanentthe R&D tax credit
GovernmentImproving
Issues
What changes could federalgovernment undertake to improve the business
climate for your company?
58%comprehensive
tax reform40%
Federal debt and deficit
37%Enhance and
make permanentthe r&d tax credit
56%Stem education to develop
domestic talent
49%H1-b visa/green card reform
As a public policy organization, the Silicon Valley Leadership Group routinely polls members on pressing national, state and local issues affecting the entire population. For the 2014 survey, participants were asked to comment on the improved condition of the state budget and the Patient Protection and Affordable Care Act (Obamacare).
Managing the State BudgetBecause of a revenue structure that depends disproportionately on the income tax for two-thirds of the general fund receipts, the state treasury has the potential to suffer from a boom-and-bust economy. When the economy is flush, revenues flow in well beyond expectations, sometimes leading policy makers to distribute the excess funds without considering future financing. When the economy suffers, state revenues fall, sometimes dramati-cally, again because of lopsided reliance on a single tax. Whether state policy makers will ever solve the boom-and-bust revenue structure remains to be seen. The more immediate question centers on what the state should do about an anticipated budget surplus over the next 18 months. Of the 10 categories listed for reply, partic-ipants were resolute in two areas. Nearly 70 percent answered that the funds should be used to build a rainy day reserve for times when revenues fall short of expectations or suffer from a depressed economy. Almost as many, 68 percent, stated that the extra money should be used to improve transportation. Public education also received considerable support, with 66 percent calling for money for higher education and 62 percent sugges-ting the need for further K-12 public education funding. Responses to these four categories were well beyond replies to any of the remaining issue areas.
With respect to decreased spending suggestions, 64 percent called for less spending on general government operations, followed by 57 percent who want to see reduced spending for corrections and rehabilitation. The third largest area of proposed spending decreases, health and human services, received replies from 41 percent of the participants.
The nonpartisan state Legislative Analyst’s Office projects a $3.2 billion operatingsurplus through June 30, 2015. Based on the state’s 2013-2014 budget, in which of
the following areas would you support changes in state expenditures?
68%
26%
6%
Transportation(currently 9.3% of budget)
23%
52%
25%
Environmental protection(currently 1.8% of budget)
38%
48%
14%
Labor and workforcedevelopment
(currently 0.6% of budget)
3% 33%
64%
General government andgovernment operation
(currently 5.9% of budget)
70%
26%
5%
Building reserves; reducing debt(currently 0% of budget)
1+1=2 62%
34%
4%
K-12 education(currently 27.4% of budget)
66%
24%
9%
Higher education(currently 7.8% of budget)
16%
44%
41%
Health and human services(currently 31.7% of budget)
6% 37%
57%
Corrections and rehabilitation(currently 7.7% of budget)
36%
47%
17%
Business, consumer services,and housing (infrastructure)(currently 1.0% of budget)
14 15CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Public PolicyCurrent
At the Federal LevelIncreasingly, the needs of companies and govern-ments are intertwined; each benefits from the cooperation of the other in the 21st century global economic environment. To that end, the CEO Business Climate Survey asked participants to iden-tify from 18 categories the five most important federal government changes that would help the Valley thrive. Comprehensive tax reform attracted the responses of 58 percent of the participants. This sentiment was almost matched by the concern for STEM (science, technology, engineering and math) education programs, which received responses from 56 percent. H1-B visa and green card reforms were mentioned by 49 percent of the respondents, again reflecting the apprehension regarding the workforce of the future. Managing the federal debt and national deficit drew replies from 40 percent of the participants, followed by the need to expand and make permanent the Research and Development tax credit, which received replies from 37 percent. Clearly, the over-all themes with respect to federal assistance revolved around a more secure, predictable economic environment along with development and maintenance of a reliable workforce.
At the State LevelSurvey participants were also asked to focus on changes made at the state level that would improve the overall climate for Valley companies. Investing in traffic relief and transportation improvements received support from 55 percent, up from 45 percent in 2013. The reason for this concern is simple: without the easy flow of traffic, employees can’t get to work and commerce can’t move, both of which can reduce business produc-tivity. Strengthening K-12 public education garnered support from slightly more than 37 percent of the participants—again, a reflection of continued concern for the welfare of employee families as well as the future preparation of the Valley’s workforce. Respondents pointed to the need for additional reductions of public pension costs as their third most important concern, with 36 percent weighing in on this proposition. More affordable housing followed closely with votes from 35 percent, while enhancing and making perma-nent the state Research and Development tax credit rounded out the top five with votes from 33 percent.
What changes could stategovernment undertake to improve the business
climate for your company?
55%invest in traffic
relief/transportationimprovements
37%Strengthen K-12
education funding
36%Further reduce
public pension costs
1+1=2
$
35%Help create more
affordable housing
33%Enhance and
make permanentthe R&D tax credit
GovernmentImproving
Issues
What changes could federalgovernment undertake to improve the business
climate for your company?
58%comprehensive
tax reform40%
Federal debt and deficit
37%Enhance and
make permanentthe r&d tax credit
56%Stem education to develop
domestic talent
49%H1-b visa/green card reform
As a public policy organization, the Silicon Valley Leadership Group routinely polls members on pressing national, state and local issues affecting the entire population. For the 2014 survey, participants were asked to comment on the improved condition of the state budget and the Patient Protection and Affordable Care Act (Obamacare).
Managing the State BudgetBecause of a revenue structure that depends disproportionately on the income tax for two-thirds of the general fund receipts, the state treasury has the potential to suffer from a boom-and-bust economy. When the economy is flush, revenues flow in well beyond expectations, sometimes leading policy makers to distribute the excess funds without considering future financing. When the economy suffers, state revenues fall, sometimes dramati-cally, again because of lopsided reliance on a single tax. Whether state policy makers will ever solve the boom-and-bust revenue structure remains to be seen. The more immediate question centers on what the state should do about an anticipated budget surplus over the next 18 months. Of the 10 categories listed for reply, partic-ipants were resolute in two areas. Nearly 70 percent answered that the funds should be used to build a rainy day reserve for times when revenues fall short of expectations or suffer from a depressed economy. Almost as many, 68 percent, stated that the extra money should be used to improve transportation. Public education also received considerable support, with 66 percent calling for money for higher education and 62 percent sugges-ting the need for further K-12 public education funding. Responses to these four categories were well beyond replies to any of the remaining issue areas.
With respect to decreased spending suggestions, 64 percent called for less spending on general government operations, followed by 57 percent who want to see reduced spending for corrections and rehabilitation. The third largest area of proposed spending decreases, health and human services, received replies from 41 percent of the participants.
The nonpartisan state Legislative Analyst’s Office projects a $3.2 billion operatingsurplus through June 30, 2015. Based on the state’s 2013-2014 budget, in which of
the following areas would you support changes in state expenditures?
68%
26%
6%
Transportation(currently 9.3% of budget)
23%
52%
25%
Environmental protection(currently 1.8% of budget)
38%
48%
14%
Labor and workforcedevelopment
(currently 0.6% of budget)
3% 33%
64%
General government andgovernment operation
(currently 5.9% of budget)
70%
26%
5%
Building reserves; reducing debt(currently 0% of budget)
1+1=2 62%
34%
4%
K-12 education(currently 27.4% of budget)
66%
24%
9%
Higher education(currently 7.8% of budget)
16%
44%
41%
Health and human services(currently 31.7% of budget)
6% 37%
57%
Corrections and rehabilitation(currently 7.7% of budget)
36%
47%
17%
Business, consumer services,and housing (infrastructure)(currently 1.0% of budget)
14 15CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Public PolicyCurrent
For most businesses and the economy in Silicon Valley, these are good times. Venture capital is flowing, many companies are performing at or beyond expectations, and the workforce is thriving as demonstrated by the region having one of the lowest unemployment percentages in the state. Combined, these successes have helped to improve corporate profits, increase employment, and provide considerable revenue boosts for national, state and local governments. None of this is by accident. Companies and their employees have worked hard to achieve and maintain this standing in an increasingly competitive economic environment that presents endless challenges from areas throughout the nation and around the world.
Yet, if Valley residents know anything, it is that the region’s future successes can’t rest on today’s accomplish-ments. Innovation, change and competition are not simply ideas that float among others in the Valley—they are underlying themes that present challenges and opportunities every day to every industry sector. Indeed, one of the primary purposes of the Silicon Valley CEO Business Climate Survey is to identify potentially troublesome trends in advance so they may be addressed sooner rather than later. Conversely, positive trends and develop-ments that are noted in the survey results deserve continued support.
All this points to the role of the Silicon Valley Leadership Group in the region, state and nation. The members are active partners with their employees, fellow residents and governments. Along these lines, the Leadership Group has been a voice in promoting tax measures for BART, local transportation improvements, and public education, as well as expanded affordable housing through Housing Trust Silicon Valley. Recognizing the needs of those who are less fortunate, the Silicon Valley Leadership Group Foundation has sponsored with its members numer-ous community fundraising events throughout the year, with the proceeds distributed to designated nonprofits.
The 2014 survey is another representation of the Leadership Group’s active interest and involvement in the com-munity. The survey results are intended to help citizens, companies and governments better understand the current pressing issues of the day so that they may work together toward their resolution.
-Larry N. Gerston
______________________________________________________________________________________
1 “Valley doubles ways to innovate,” San Jose Mercury News, February 1, 2013.
2 “State jobs disparity detailed,” San Jose Mercury News, December 5, 2013.
3 “Venture capital fourth-quarter report,” San Jose Mercury News, February 9, 2014.
4 “And the survey says Silicon Valley is back,” San Jose Mercury News, January 18, 2013.
16 17
Conclusion
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Health CareThe Patient Protection and Affordable Care Act is perhaps one of the most controversial issues to emerge on the national scene in the past few years. When asked about this legislation, 43 percent of the respondents supported the current law; 28 percent opposed the law, and another 29 percent expressed no opinion. There has been some movement on this issue. In the 2013, survey 36 percent favored keeping the act, with 28 percent calling for repeal; 36 percent remained without an opinion. Thus, over the past year, there has been an increase of support for the national health care law. Still, in question 15 of the current survey, 26 percent of the respondents pointed to health care costs as a business challenge in Silicon Valley. In January 2015, most businesses with 50 or more employees will be required to provide health insur-ance. Given the uncertainties ahead, it will be interesting to revisit this question in the 2015 survey.
Which of these statements isclosest to your feelings about
the Patient Protection andAffordable Care Act of 2010?
Keep
Repe
al
43%
28%No
Opi
nion 29%
For most businesses and the economy in Silicon Valley, these are good times. Venture capital is flowing, many companies are performing at or beyond expectations, and the workforce is thriving as demonstrated by the region having one of the lowest unemployment percentages in the state. Combined, these successes have helped to improve corporate profits, increase employment, and provide considerable revenue boosts for national, state and local governments. None of this is by accident. Companies and their employees have worked hard to achieve and maintain this standing in an increasingly competitive economic environment that presents endless challenges from areas throughout the nation and around the world.
Yet, if Valley residents know anything, it is that the region’s future successes can’t rest on today’s accomplish-ments. Innovation, change and competition are not simply ideas that float among others in the Valley—they are underlying themes that present challenges and opportunities every day to every industry sector. Indeed, one of the primary purposes of the Silicon Valley CEO Business Climate Survey is to identify potentially troublesome trends in advance so they may be addressed sooner rather than later. Conversely, positive trends and develop-ments that are noted in the survey results deserve continued support.
All this points to the role of the Silicon Valley Leadership Group in the region, state and nation. The members are active partners with their employees, fellow residents and governments. Along these lines, the Leadership Group has been a voice in promoting tax measures for BART, local transportation improvements, and public education, as well as expanded affordable housing through Housing Trust Silicon Valley. Recognizing the needs of those who are less fortunate, the Silicon Valley Leadership Group Foundation has sponsored with its members numer-ous community fundraising events throughout the year, with the proceeds distributed to designated nonprofits.
The 2014 survey is another representation of the Leadership Group’s active interest and involvement in the com-munity. The survey results are intended to help citizens, companies and governments better understand the current pressing issues of the day so that they may work together toward their resolution.
-Larry N. Gerston
______________________________________________________________________________________
1 “Valley doubles ways to innovate,” San Jose Mercury News, February 1, 2013.
2 “State jobs disparity detailed,” San Jose Mercury News, December 5, 2013.
3 “Venture capital fourth-quarter report,” San Jose Mercury News, February 9, 2014.
4 “And the survey says Silicon Valley is back,” San Jose Mercury News, January 18, 2013.
16 17
Conclusion
CEO BUSINESS CLIMATE SURVEY 2014 SILICON VALLEY LEADERSHIP GROUP
Health CareThe Patient Protection and Affordable Care Act is perhaps one of the most controversial issues to emerge on the national scene in the past few years. When asked about this legislation, 43 percent of the respondents supported the current law; 28 percent opposed the law, and another 29 percent expressed no opinion. There has been some movement on this issue. In the 2013, survey 36 percent favored keeping the act, with 28 percent calling for repeal; 36 percent remained without an opinion. Thus, over the past year, there has been an increase of support for the national health care law. Still, in question 15 of the current survey, 26 percent of the respondents pointed to health care costs as a business challenge in Silicon Valley. In January 2015, most businesses with 50 or more employees will be required to provide health insur-ance. Given the uncertainties ahead, it will be interesting to revisit this question in the 2015 survey.
Which of these statements isclosest to your feelings about
the Patient Protection andAffordable Care Act of 2010?
Keep
Repe
al
43%
28%No
Opi
nion 29%
18 CEO BUSINESS CLIMATE SURVEY 2013 SILICON VALLEY LEADERSHIP GROUP 19
15. What are the top five business challenges in Silicon Valley?
High housing costs for employeesEmployee recruitment / retention costsTraffic congestionBusiness regulationsBusiness taxesImmigration: H1-B visas and / or green cardsHealth care costsFrivolous lawsuitsState budget structureEnergy costsWorkers' compensation costsIntellectual property protection costsAccess to capitalOvertime / 8-hour work day requirementOther, please specifyDon't know/no answerUnemployment insurance costsWaterAir transportation / cargoPaid family leave
154138123959071553534282621171312109633
72%65%58%45%42%33%26%16%16%13%12%10%8%6%6%5%4%3%1%1%
16. Because you answered "Business Regulations" forbusiness challenges, which of thefollowing challenges applied:
California Environmental Quality Act (CEQA)Wage and hour issuesSarbanes-Oxley ActDodd-Frank Act (a.k.a. financial services reform), including the Volker RuleAB 32 requirementsImport-export controlsDon't know/no answerOther, please specifyGreen chemistry regulations
43363229
181512108
46%38%34%31%
19%16%13%11%9%
17. What are the top three cost of living challengesin Silicon Valley for workers and their families?
Housing costsHigh taxesTraffic congestionChild careHealth careK-12 educationEnergy costsHigher educationDon't know/no answerOther, please specify
183117109514543121182
90%58%54%25%22%21%6%5%4%1%
18. What top three changes could local government undertaketo improve the business climate for your company?
Ease local street and road congestionImprove K-12 public educationApprove more affordable home developmentsReduce public pension costsStreamline permit approval processProvide more community college training/work force developmentImprove public safetyFund more street maintenance/pothole repairsSupport development of professional sports facilities (e.g. 49ers in Santa Clara and A's in San Jose)Other, please specifyProvide more parks and open spaceEnhance arts and cultureDon't know/no answer
1049996766735
262413
10843
52%49%48%38%33%17%
13%12%6%
5%4%2%1%
19. What top five actions could the state government taketo improve the business climate for your company?
Invest in traffic relief / transportation improvementsStrengthen K-12 education fundingFurther reduce public pension costsHelp create more affordable housingEnhance and make permanent the research and development tax creditStrengthen higher education fundingStreamline regulatory and permit approvalsCalifornia Environmental Quality Act (CEQA) reformLimit frivolous lawsuitsReduce workers compensation ratesReinstate overtime after a 40-hour work week rather than an 8-hour work dayOffer full sales tax exemption for purchases of manufacturing equipmentAdopt performance-based budgetingReduce unemployment insurance costsInvest in broadband deploymentLower energy costsAvoid split roll taxOther, please specifyProvide a financing mechanism for water infrastructure improvements and promote water supply reliabilityDon’t know/no answer
11176747168
636252453431
30
29282525181411
8
55%37%36%35%33%
31%31%26%22%17%15%
15%
14%14%12%12%9%7%5%
4%
20. Which 5 of the following issue areas deserve the mostattention from the federal government for Silicon Valley:
Comprehensive tax reformSTEM (science, technology, engineering and math) education to develop domestic talentH1-B visa / green card reformFederal debt and deficitR&D Tax Credit: Expand and make permanentRepatriation of foreign earningsIntellectual property protectionCybersecurityClimate change legislation to reduce greenhouse gases and increase energy securityComprehensive energy policiesSarbanes-Oxley reformImplementation of the Patient Protection and Affordable Care Act of 2010, a.k.a. national comprehensive health care reformDodd-Frank reform, a.k.a. financial services reformsBroadband deploymentMore free tradeCorporate governance (Shareholder Empowerment Act, derivatives, proxy, etc.)Rejection of the “Employee Free Choice” Act, a.k.a. card check billOther, please specifyInternet privacy
114111
97797367514742
363229
27261716
16
1311
58%56%
49%40%37%34%26%24%21%
18%16%15%
14%13%9%8%
8%
7%6%
21. Are you a member of other regional business associations in theU.S. that are similar to the Leadership Group?
YesNo
80125
39%61%
22. Does your company have a physicalpresence in states other than California?
YesNo
14758
72%28%
Full Survey
2. Number of employees in Silicon Valley:
1-2021-100101-500501-1,0001,001-5,0005,001-10,00010,001 or higherDon’t know/no answer
37406818421034
17%18%31%8%
19%5%1%2%
3. Since January 1, 2013, have you added, stayedthe same or subtracted jobs in Silicon Valley?
Added jobsStayed the sameSubtracted jobsDon’t know/no answer
13760214
62%27%10%2%
4. If added, how many?One-2021-100101-250251-500501-1,000More than 1,000Don’t know/no answer
674295228
50%31%7%4%2%2%6%
5. If subtracted, how many?
1-2021-100101-250251-500501-1,000More than 1,000Don’t know/no answer
11630100
52%29%14%0%5%0%0%
6. Beginning January, 2014, does your company expectto add jobs, subtract jobs, or stay the same in Silicon Valley?
Add JobsStay the SameSubtract JobsDon't Know/No Answer
13066815
59%30%4%7%
7. How many jobs do you expect to add?
1-2021-100101-250251-500501-1000More than 1000Don't know/no answer
7637610010
59%29%5%1%0%0%8%
8. How many jobs do you expect to subtract?
1-2021-100 101-250251-500501-1000More than 1000Don't know/no answer
2511000
22%56%11%11%0.0%0.0%0.0%
9. Did your company move jobs to another state since January 1, 2013?
YesNo Don't know/no answer
1814118
19%77%4%
10. What was the MOST important reason your companymoved jobs out of the U.S. since January 1, 2013?
Reduced labor costsMore available workforceLess regulationProximity to customersGovernment incentives in new location / lack of tax policy incentives in CAState corporate taxes too highOther, Please specify:Lower land / lower infrastructure costsLack of tax policy incentives in CaliforniaDon't know/no answerMore convenient supply chain
119433
332110
28%23%10%8%8%
8%8%5%3%3%0%
11. Did your company move jobs to another country since January 1, 2013?
Yes No Don't know/no answer
411688
19%77%4%
12. What was the most important reason your company moved jobsout of the U.S. since January 1, 2013?
Reduced labor costsMore available workforceOther, please specifyProximity to customersLower land / lower infrastructure costsMore convenient supply chainGovernment incentives in new locationU.S. corporate tax ratesLess federal regulationDon't know/no answer
20753221100
49%17%12%7%5%5%2%2%
0.0%0.0%
13. How do you see job growth in Silicon Valleyin your industry sector in 2014?
Better Worse No change Don't know/no answer
14. What are the top 5 benefits/strengthsof doing business in Silicon Valley?
Access to skilled laborEntrepreneurial mindsetProximity to customers and competitorsWorld class universitiesClimate / weatherMerit-based work environmentAccess to venture capitalEthnic diversityAccess to airports / seaportsPacific Rim locationsArts and cultureOther, please specifyDon’t know/no answer
17016111210693777261492117175
80%76%53%50%44%36%34%29%23%10%8%8%2%
Financial / Professional / Venture CapitalHigh-Tech Manufacturing / SemiconductorSoftwareInternet/CommunicationsEnergy / Clean Tech / UtilitiesHealth Care / Bio-Tech / Med-TechOther: Please specifyEducation / UniversityGen. Manufacturing / Aerospace / DefenseTransportationSocial MediaDon’t know/no answer
3835312322171714121120
17%16%14%10%10%8%8%6%5%5%1%0%
1. Which of the following most closely describesyour industry sector:
Results
13013619
61%6%
29%4%
18 CEO BUSINESS CLIMATE SURVEY 2013 SILICON VALLEY LEADERSHIP GROUP 19
15. What are the top five business challenges in Silicon Valley?
High housing costs for employeesEmployee recruitment / retention costsTraffic congestionBusiness regulationsBusiness taxesImmigration: H1-B visas and / or green cardsHealth care costsFrivolous lawsuitsState budget structureEnergy costsWorkers' compensation costsIntellectual property protection costsAccess to capitalOvertime / 8-hour work day requirementOther, please specifyDon't know/no answerUnemployment insurance costsWaterAir transportation / cargoPaid family leave
154138123959071553534282621171312109633
72%65%58%45%42%33%26%16%16%13%12%10%8%6%6%5%4%3%1%1%
16. Because you answered "Business Regulations" forbusiness challenges, which of thefollowing challenges applied:
California Environmental Quality Act (CEQA)Wage and hour issuesSarbanes-Oxley ActDodd-Frank Act (a.k.a. financial services reform), including the Volker RuleAB 32 requirementsImport-export controlsDon't know/no answerOther, please specifyGreen chemistry regulations
43363229
181512108
46%38%34%31%
19%16%13%11%9%
17. What are the top three cost of living challengesin Silicon Valley for workers and their families?
Housing costsHigh taxesTraffic congestionChild careHealth careK-12 educationEnergy costsHigher educationDon't know/no answerOther, please specify
183117109514543121182
90%58%54%25%22%21%6%5%4%1%
18. What top three changes could local government undertaketo improve the business climate for your company?
Ease local street and road congestionImprove K-12 public educationApprove more affordable home developmentsReduce public pension costsStreamline permit approval processProvide more community college training/work force developmentImprove public safetyFund more street maintenance/pothole repairsSupport development of professional sports facilities (e.g. 49ers in Santa Clara and A's in San Jose)Other, please specifyProvide more parks and open spaceEnhance arts and cultureDon't know/no answer
1049996766735
262413
10843
52%49%48%38%33%17%
13%12%6%
5%4%2%1%
19. What top five actions could the state government taketo improve the business climate for your company?
Invest in traffic relief / transportation improvementsStrengthen K-12 education fundingFurther reduce public pension costsHelp create more affordable housingEnhance and make permanent the research and development tax creditStrengthen higher education fundingStreamline regulatory and permit approvalsCalifornia Environmental Quality Act (CEQA) reformLimit frivolous lawsuitsReduce workers compensation ratesReinstate overtime after a 40-hour work week rather than an 8-hour work dayOffer full sales tax exemption for purchases of manufacturing equipmentAdopt performance-based budgetingReduce unemployment insurance costsInvest in broadband deploymentLower energy costsAvoid split roll taxOther, please specifyProvide a financing mechanism for water infrastructure improvements and promote water supply reliabilityDon’t know/no answer
11176747168
636252453431
30
29282525181411
8
55%37%36%35%33%
31%31%26%22%17%15%
15%
14%14%12%12%9%7%5%
4%
20. Which 5 of the following issue areas deserve the mostattention from the federal government for Silicon Valley:
Comprehensive tax reformSTEM (science, technology, engineering and math) education to develop domestic talentH1-B visa / green card reformFederal debt and deficitR&D Tax Credit: Expand and make permanentRepatriation of foreign earningsIntellectual property protectionCybersecurityClimate change legislation to reduce greenhouse gases and increase energy securityComprehensive energy policiesSarbanes-Oxley reformImplementation of the Patient Protection and Affordable Care Act of 2010, a.k.a. national comprehensive health care reformDodd-Frank reform, a.k.a. financial services reformsBroadband deploymentMore free tradeCorporate governance (Shareholder Empowerment Act, derivatives, proxy, etc.)Rejection of the “Employee Free Choice” Act, a.k.a. card check billOther, please specifyInternet privacy
114111
97797367514742
363229
27261716
16
1311
58%56%
49%40%37%34%26%24%21%
18%16%15%
14%13%9%8%
8%
7%6%
21. Are you a member of other regional business associations in theU.S. that are similar to the Leadership Group?
YesNo
80125
39%61%
22. Does your company have a physicalpresence in states other than California?
YesNo
14758
72%28%
Full Survey
2. Number of employees in Silicon Valley:
1-2021-100101-500501-1,0001,001-5,0005,001-10,00010,001 or higherDon’t know/no answer
37406818421034
17%18%31%8%
19%5%1%2%
3. Since January 1, 2013, have you added, stayedthe same or subtracted jobs in Silicon Valley?
Added jobsStayed the sameSubtracted jobsDon’t know/no answer
13760214
62%27%10%2%
4. If added, how many?One-2021-100101-250251-500501-1,000More than 1,000Don’t know/no answer
674295228
50%31%7%4%2%2%6%
5. If subtracted, how many?
1-2021-100101-250251-500501-1,000More than 1,000Don’t know/no answer
11630100
52%29%14%0%5%0%0%
6. Beginning January, 2014, does your company expectto add jobs, subtract jobs, or stay the same in Silicon Valley?
Add JobsStay the SameSubtract JobsDon't Know/No Answer
130668
15
59%30%4%7%
7. How many jobs do you expect to add?
1-2021-100101-250251-500501-1000More than 1000Don't know/no answer
76376100
10
59%29%5%1%0%0%8%
8. How many jobs do you expect to subtract?
1-2021-100 101-250251-500501-1000More than 1000Don't know/no answer
2511000
22%56%11%11%0.0%0.0%0.0%
9. Did your company move jobs to another state since January 1, 2013?
YesNo Don't know/no answer
1814118
19%77%4%
10. What was the MOST important reason your companymoved jobs out of the U.S. since January 1, 2013?
Reduced labor costsMore available workforceLess regulationProximity to customersGovernment incentives in new location / lack of tax policy incentives in CAState corporate taxes too highOther, Please specify:Lower land / lower infrastructure costsLack of tax policy incentives in CaliforniaDon't know/no answerMore convenient supply chain
119433
332110
28%23%10%8%8%
8%8%5%3%3%0%
11. Did your company move jobs to another country since January 1, 2013?
Yes No Don't know/no answer
411688
19%77%4%
12. What was the most important reason your company moved jobsout of the U.S. since January 1, 2013?
Reduced labor costsMore available workforceOther, please specifyProximity to customersLower land / lower infrastructure costsMore convenient supply chainGovernment incentives in new locationU.S. corporate tax ratesLess federal regulationDon't know/no answer
20753221100
49%17%12%7%5%5%2%2%
0.0%0.0%
13. How do you see job growth in Silicon Valleyin your industry sector in 2014?
Better Worse No change Don't know/no answer
14. What are the top 5 benefits/strengthsof doing business in Silicon Valley?
Access to skilled laborEntrepreneurial mindsetProximity to customers and competitorsWorld class universitiesClimate / weatherMerit-based work environmentAccess to venture capitalEthnic diversityAccess to airports / seaportsPacific Rim locationsArts and cultureOther, please specifyDon’t know/no answer
17016111210693777261492117175
80%76%53%50%44%36%34%29%23%10%8%8%2%
Financial / Professional / Venture CapitalHigh-Tech Manufacturing / SemiconductorSoftwareInternet/CommunicationsEnergy / Clean Tech / UtilitiesHealth Care / Bio-Tech / Med-TechOther: Please specifyEducation / UniversityGen. Manufacturing / Aerospace / DefenseTransportationSocial MediaDon’t know/no answer
3835312322171714121120
17%16%14%10%10%8%8%6%5%5%1%0%
1. Which of the following most closely describesyour industry sector:
Results
13013619
61%6%
29%4%
20 CEO BUSINESS CLIMATE SURVEY 2013 SILICON VALLEY LEADERSHIP GROUP 21
23. Please select the states in whichyou have a physical presence:
CaliforniaTexasNew YorkMassachusettsIllinoisFloridaGeorgiaWashingtonColoradoNew JerseyVirginiaArizonaPennsylvaniaOregonDistrict of ColumbiaMinnesotaOhioMichiganMarylandUtahNorth CarolinaConnecticutNevadaKansasTennesseeWisconsinMissouriOklahomaIndianaKentuckySouth CarolinaAlabamaDelawareIdahoLouisianaNew MexicoHawaiiArkansasNew HampshireRhode IslandIowaMaineMississippiMontanaNebraskaAlaskaWest VirginiaVermontNorth DakotaSouth DakotaWyoming
928367655754545452494947474645413936353534333126262625252322222121212020191817171616161616141413111010
65%58%47%46%40%38%38%38%37%35%35%33%33%32%32%29%27%25%25%25%24%23%22%18%18%18%18%18%16%15%15%15%15%15%14%14%13%13%12%12%11%11%11%11%11%10%10%9%8%7%7%
24. Please select the cities in whichyou have a physical presence:
San Jose, CaliforniaLos Angeles, CaliforniaSan Francisco, CaliforniaBoston, MassachusettsNew York, New YorkAustin, TexasDallas, TexasChicago, IllinoisSan Diego, CaliforniaAtlanta, GeorgiaSeattle, WashingtonHouston, TexasPhoenix, ArizonaDenver, ColoradoWashington, D.C.Portland, OregonPhiladelphia, PennsylvaniaOakland, CaliforniaSacramento, CaliforniaMinneapolis, MinnesotaMiami, FloridaCleveland, OhioDetroit, MichiganOther, please specify
906057554948484645414039383838383733292928262424
66%44%42%40%36%35%35%34%33%30%29%29%28%28%28%28%27%24%21%21%21%19%18%18%
25. Are you a multinational corporation?
YesNo
12084
59%41%
26. What are your top three reasons for having aphysical presence outside of the U.S.?
Closer to CustomersTalent / WorkforceLower Cost of Doing BusinessCloser to Supply ChainLower Corporate Tax RateOther, please specifyMore Competitive Incentives than U.S.U.S. Regulations
8356532921141312
72%49%46%25%18%12%11%10%
27. What percentage of your 2013 revenueis from sales outside of the U.S.?
0-10%11-20%21-30%31-40%41-50%51-60%61-70%71-80%81-90%91-100%
21101413128
13835
20%9%
13%12%11%8%
12%8%3%5%
28. Which of these statements is closest to your feelings about thePatient Protection and Affordable Care Act of 2010, a.k.a.national comprehensive health care reform law?
Keep it Repeal it No opinion/no answer
855557
43%28%29%
Las Vegas, NevadaCharlotte, North CarolinaBaltimore, MarylandColumbus, OhioLong Beach, CaliforniaJacksonville, FloridaRaleigh, North CarolinaSan Antonio, TexasColorado Springs, ColoradoNashville, TennesseeLouisville, KentuckyOklahoma City, OklahomaFort Worth, TexasIndianapolis, IndianaKansas City, MissouriFresno, CaliforniaAlbuquerque, New MexicoMilwaukee, WisconsinMemphis, TennesseeTucson, ArizonaTulsa, OklahomaMesa, ArizonaOmaha, NebraskaArlington, TexasEl Paso, TexasWichita, KansasVirginia Beach, Virginia
232322222120202019191818181717161515141313121212121110
17%17%16%16%15%15%15%15%14%14%13%13%13%13%13%12%11%11%10%10%10%9%9%9%9%8%7%
29. The nonpartisan state Legislative Analyst Office (LAO)projects a $3.2 billion operating surplus through June 30, 2015.Based on the state's current 2013-2014 budget, in which of thefollowing areas would you support changes in stateexpenditures?
K-12 education(currently 27.4% of budget)Higher education(currently 7.8% of budget)Health and human services(currently 31.7% of budget)Corrections and rehabilitation (currently 7.7% of budget)Business, Consumer Services,and Housing (infrastructure)(currently 1.0% of budget)Transportation(currently 9.3% of budget)Environmental Protection(currently 1.8% of budget)Labor and Workforce Development(currently 0.6% of budget)General Government andGovernment Operation(currently 5.9% of budget)Building Reserves; Reducing debt(currently 0% of budget)
Increase Decrease Stay theSame
109
117
26
10
59
118
39
63
5
122
7
16
67
93
28
10
41
23
105
8
59
43
72
61
77
46
87
79
54
45
30. Generally speaking, would you say that:
Statewide legislationis on the righttrack (1) or thewrong track (5) increating a healthybusiness climate?
Statewide regulationsare on the righttrack (1) or wrongtrack (5) in creatinga healthy business climate?
Governor Brownis on the right track (1)or wrong track (5) in creatinga healthy business climate?
The state legislature ison the right track(1) or wrong track (5)in creating a healthybusiness climate?
4
2
33
6
27
23
53
30
47
48
51
47
60
56
27
52
45
56
21
48
3.63
3.76
2.73
3.58
34. In this economy, what should be the top twopriority issues for the Silicon Valley Leadership Groupthat would be worth your personal involvement?
Education: K-12Immigration Reform: H1B Visas and Green Cards for Highly Skilled WorkersEducation: Higher EdTransportationTax Policy: Comprehensive Federal Tax ReformEnvironmentEnergyHousing/Land UseState Budget and Governance ReformTax Policy: State and Federal R&D Tax CreditsCybersecurityHealth CareRegulatory reform: California Environmental Quality Act (CEQA)Other, please specifyInternet PrivacyEducation: Pre-K
6859
5550393633292929262524
15124
36%31%
29%26%21%19%18%15%15%15%14%13%13%
8%6%2%
Right 2 3 4 Wrong AverageRating
20 CEO BUSINESS CLIMATE SURVEY 2013 SILICON VALLEY LEADERSHIP GROUP 21
23. Please select the states in whichyou have a physical presence:
CaliforniaTexasNew YorkMassachusettsIllinoisFloridaGeorgiaWashingtonColoradoNew JerseyVirginiaArizonaPennsylvaniaOregonDistrict of ColumbiaMinnesotaOhioMichiganMarylandUtahNorth CarolinaConnecticutNevadaKansasTennesseeWisconsinMissouriOklahomaIndianaKentuckySouth CarolinaAlabamaDelawareIdahoLouisianaNew MexicoHawaiiArkansasNew HampshireRhode IslandIowaMaineMississippiMontanaNebraskaAlaskaWest VirginiaVermontNorth DakotaSouth DakotaWyoming
928367655754545452494947474645413936353534333126262625252322222121212020191817171616161616141413111010
65%58%47%46%40%38%38%38%37%35%35%33%33%32%32%29%27%25%25%25%24%23%22%18%18%18%18%18%16%15%15%15%15%15%14%14%13%13%12%12%11%11%11%11%11%10%10%9%8%7%7%
24. Please select the cities in whichyou have a physical presence:
San Jose, CaliforniaLos Angeles, CaliforniaSan Francisco, CaliforniaBoston, MassachusettsNew York, New YorkAustin, TexasDallas, TexasChicago, IllinoisSan Diego, CaliforniaAtlanta, GeorgiaSeattle, WashingtonHouston, TexasPhoenix, ArizonaDenver, ColoradoWashington, D.C.Portland, OregonPhiladelphia, PennsylvaniaOakland, CaliforniaSacramento, CaliforniaMinneapolis, MinnesotaMiami, FloridaCleveland, OhioDetroit, MichiganOther, please specify
906057554948484645414039383838383733292928262424
66%44%42%40%36%35%35%34%33%30%29%29%28%28%28%28%27%24%21%21%21%19%18%18%
25. Are you a multinational corporation?
YesNo
12084
59%41%
26. What are your top three reasons for having aphysical presence outside of the U.S.?
Closer to CustomersTalent / WorkforceLower Cost of Doing BusinessCloser to Supply ChainLower Corporate Tax RateOther, please specifyMore Competitive Incentives than U.S.U.S. Regulations
8356532921141312
72%49%46%25%18%12%11%10%
27. What percentage of your 2013 revenueis from sales outside of the U.S.?
0-10%11-20%21-30%31-40%41-50%51-60%61-70%71-80%81-90%91-100%
21101413128
13835
20%9%
13%12%11%8%
12%8%3%5%
28. Which of these statements is closest to your feelings about thePatient Protection and Affordable Care Act of 2010, a.k.a.national comprehensive health care reform law?
Keep it Repeal it No opinion/no answer
855557
43%28%29%
Las Vegas, NevadaCharlotte, North CarolinaBaltimore, MarylandColumbus, OhioLong Beach, CaliforniaJacksonville, FloridaRaleigh, North CarolinaSan Antonio, TexasColorado Springs, ColoradoNashville, TennesseeLouisville, KentuckyOklahoma City, OklahomaFort Worth, TexasIndianapolis, IndianaKansas City, MissouriFresno, CaliforniaAlbuquerque, New MexicoMilwaukee, WisconsinMemphis, TennesseeTucson, ArizonaTulsa, OklahomaMesa, ArizonaOmaha, NebraskaArlington, TexasEl Paso, TexasWichita, KansasVirginia Beach, Virginia
232322222120202019191818181717161515141313121212121110
17%17%16%16%15%15%15%15%14%14%13%13%13%13%13%12%11%11%10%10%10%9%9%9%9%8%7%
29. The nonpartisan state Legislative Analyst Office (LAO)projects a $3.2 billion operating surplus through June 30, 2015.Based on the state's current 2013-2014 budget, in which of thefollowing areas would you support changes in stateexpenditures?
K-12 education(currently 27.4% of budget)Higher education(currently 7.8% of budget)Health and human services(currently 31.7% of budget)Corrections and rehabilitation (currently 7.7% of budget)Business, Consumer Services,and Housing (infrastructure)(currently 1.0% of budget)Transportation(currently 9.3% of budget)Environmental Protection(currently 1.8% of budget)Labor and Workforce Development(currently 0.6% of budget)General Government andGovernment Operation(currently 5.9% of budget)Building Reserves; Reducing debt(currently 0% of budget)
Increase Decrease Stay theSame
109
117
26
10
59
118
39
63
5
122
7
16
67
93
28
10
41
23
105
8
59
43
72
61
77
46
87
79
54
45
30. Generally speaking, would you say that:
Statewide legislationis on the righttrack (1) or thewrong track (5) increating a healthybusiness climate?
Statewide regulationsare on the righttrack (1) or wrongtrack (5) in creatinga healthy business climate?
Governor Brownis on the right track (1)or wrong track (5) in creatinga healthy business climate?
The state legislature ison the right track(1) or wrong track (5)in creating a healthybusiness climate?
4
2
33
6
27
23
53
30
47
48
51
47
60
56
27
52
45
56
21
48
3.63
3.76
2.73
3.58
34. In this economy, what should be the top twopriority issues for the Silicon Valley Leadership Groupthat would be worth your personal involvement?
Education: K-12Immigration Reform: H1B Visas and Green Cards for Highly Skilled WorkersEducation: Higher EdTransportationTax Policy: Comprehensive Federal Tax ReformEnvironmentEnergyHousing/Land UseState Budget and Governance ReformTax Policy: State and Federal R&D Tax CreditsCybersecurityHealth CareRegulatory reform: California Environmental Quality Act (CEQA)Other, please specifyInternet PrivacyEducation: Pre-K
6859
5550393633292929262524
15124
36%31%
29%26%21%19%18%15%15%15%14%13%13%
8%6%2%
Right 2 3 4 Wrong AverageRating
Leadership Group
22 CEO BUSINESS CLIMATE SURVEY 2014
The Silicon Valley Leadership Group, founded in 1978 by David Packard of Hewlett-Packard, represents nearly 400 of Silicon Valley's most respected employers on issues, programs and campaigns that affect the economic health and quality of life in Silicon Valley, including energy, transportation, education, housing, health care, tax policies, economic vitality and the environment. Leadership Group members collectively provide nearly one of every three private sector jobs in Silicon Valley.
Board Officers:Chairman: Steve Berglund, Trimble NavigationPast Chairman: Tom Werner, SunPowerPast Chairman: Aart de Geus, SynopsysPast Chairman: Mike Splinter, Applied MaterialsVice Chair: Greg Becker, SVB Financial GroupSecretary/Treasurer: John Adams, Wells Fargo BankPresident & CEO: Carl Guardino, Silicon Valley Leadership Group
Board Members:Martin Anstice, Lam ResearchShellye Archambeau, MetricStream, Inc.Andy Ball, Suffolk ConstructionGeorge Blumenthal, University of California, Santa CruzJohn Boland, KQEDTom Bottorff, Pacific Gas & Electric CompanyChris Boyd, Kaiser PermanenteTory Bruno, Lockheed Martin Space Systems CompanyBradley J. Bullington, BridgeluxDavid Cush, Virgin AmericaMichael Engh, S.J., Santa Clara UniversityTom Fallon, Infinera Corp.Tom Georgens, NetApp, Inc.Ken Goldman, Yahoo!Raquel Gonzalez, Bank of AmericaLaura Guio, IBMKen Kannappan, PlantronicsGary Lauer, eHealthMatt Mahan, CausesKen McNeely, AT&TKevin Murai, SYNNEXJes Pedersen, WebcorKim Polese, Clear Street, Inc.Mo Qayoumi, San Jose State UniversityVivek Ranadivé, TIBCOSteve Rossi, Bay Area News GroupAlan Salzman, VantagePoint Capital PartnersRon Sege, EchelonRosemary Turner, UPSRick Wallace, KLA-Tencor CorporationJed York, San Francisco 49ers
Special thanks to Jacob Baker, Nancy Sánchez and Steve Wright
Report Design by Colin Buckner, Senior Creative Associate
© 2014 Silicon Valley Leadership Group
Silicon Valley Leadership Group2001 Gateway Place, Suite 101E408.501.7864SVLG.ORG
About the
ABB/Tropos NetworksAccelaAdobeAemetis, Inc.AerotekAkraya Inc.ALOMAlteraAMDANA (All Nippon Airways)Aon Risk SolutionsAppleApplied MaterialsAppvanceAT&TAudience, Inc.Aviat NetworksBank of AmericaBarclaysBay Area News GroupBiotechnology GroupBlach Construction CompanyBoston Consulting GroupBoston Private BankBright FundsBrocadeBunny Inc.CargillCasto TravelCentrifyChargePointChrysalisCity National BankClean Power FinanceClearedge PowerClearStreetCoastal Waters Biotechnology Group LLC (CWBG)DaintreeDBL InvestorsDe Anza CollegedeCartaDeclaration ServicesDeloitte & ToucheDeVry UniversityeBayEchelonEdgewood VenturesEFIEl Camino Hospital GroupEnerNOC, Inc.Enterprise FleetEricssonErnst & YoungETMExtronFairchild SemiconductorFederal Realty Investment TrustFinelite, Inc.FlextronicsFoothill College, FHDA Community College DistrictFortisureFujiFilm Dimatix, Inc.General ElectricGilead SciencesGlencore Recycling, Inc.Good Samaritan HospitalGoVoluntrHeidlebergCementHEVTHitachi Data SystemsHPIBMiControl NetworksInfineraIntel Corp.Intuitive Surgical Inc.iPassJan MedicalJazz PharmaceuticalsJFK UniversityKaiser PermanenteKeasKLIVKovioKQEDLam ResearchLawrence Berkeley National Laboratory
Lawrence Livermore National LabLehigh HansonLinde North AmericaLockheed Martin SpaceLucile Packard Children's HospitalMarvellMcKinsey & CompanyMeru NetworksMetricStream, Inc.Mission CollegeNASA AmesNetAppNetGearNeustarNextSpaceNRGoDeskOhlone College FoundationOSIsoftOUTREACHPG&EPingerPlantronicsPower IntegrationsProgress FinancialProofpoint SystemsPurple Leaf, LLCRepublic UrbanSan Francisco 49ersSan Jose EarthquakesSan Jose GiantsSan Jose Mercury NewsSan Jose State UniversitySan Jose Water CompanySan Jose/Evergreen Community College DistrictSanDiskSanta Clara UniversitySAPSignature FlightSilicon Graphics International (SGI)Silicon Valley Bank (SVB)Silk Road MedicalSolar JunctionSpansionSplice ComunicationsSplunk, Inc.SRI InternationalStellar SolutionsStemStreetlineStrykerSuffolk ConstructionSungevitySunPower Corp.Surplus ServiceSVLGSylvatexSynapticsSYNNEX Corp.SynopsysTaos Mountain Inc.Tech CUTeradataTexas InstrumentsThe Health TrustTiVo, Inc.TranspakTrimble NavigationTsumobiTurner ConstructionUC Santa CruzUPSUS BankVantage Capital PartnersVarianVerizonVigilentVirgin AmericaVoiceBunnyWebcor BuildersWells Fargo BankXactly CorporationYear Up
*23 company responses declined to self identify
Participants
SILICON VALLEY LEADERSHIP GROUP 23
Leadership Group
22 CEO BUSINESS CLIMATE SURVEY 2014
The Silicon Valley Leadership Group, founded in 1978 by David Packard of Hewlett-Packard, represents nearly 400 of Silicon Valley's most respected employers on issues, programs and campaigns that affect the economic health and quality of life in Silicon Valley, including energy, transportation, education, housing, health care, tax policies, economic vitality and the environment. Leadership Group members collectively provide nearly one of every three private sector jobs in Silicon Valley.
Board Officers:Chairman: Steve Berglund, Trimble NavigationPast Chairman: Tom Werner, SunPowerPast Chairman: Aart de Geus, SynopsysPast Chairman: Mike Splinter, Applied MaterialsVice Chair: Greg Becker, SVB Financial GroupSecretary/Treasurer: John Adams, Wells Fargo BankPresident & CEO: Carl Guardino, Silicon Valley Leadership Group
Board Members:Martin Anstice, Lam ResearchShellye Archambeau, MetricStream, Inc.Andy Ball, Suffolk ConstructionGeorge Blumenthal, University of California, Santa CruzJohn Boland, KQEDTom Bottorff, Pacific Gas & Electric CompanyChris Boyd, Kaiser PermanenteTory Bruno, Lockheed Martin Space Systems CompanyBradley J. Bullington, BridgeluxDavid Cush, Virgin AmericaMichael Engh, S.J., Santa Clara UniversityTom Fallon, Infinera Corp.Tom Georgens, NetApp, Inc.Ken Goldman, Yahoo!Raquel Gonzalez, Bank of AmericaLaura Guio, IBMKen Kannappan, PlantronicsGary Lauer, eHealthMatt Mahan, CausesKen McNeely, AT&TKevin Murai, SYNNEXJes Pedersen, WebcorKim Polese, Clear Street, Inc.Mo Qayoumi, San Jose State UniversityVivek Ranadivé, TIBCOSteve Rossi, Bay Area News GroupAlan Salzman, VantagePoint Capital PartnersRon Sege, EchelonRosemary Turner, UPSRick Wallace, KLA-Tencor CorporationJed York, San Francisco 49ers
Special thanks to Jacob Baker, Nancy Sánchez and Steve Wright
Report Design by Colin Buckner, Senior Creative Associate
© 2014 Silicon Valley Leadership Group
Silicon Valley Leadership Group2001 Gateway Place, Suite 101E408.501.7864SVLG.ORG
About the
ABB/Tropos NetworksAccelaAdobeAemetis, Inc.AerotekAkraya Inc.ALOMAlteraAMDANA (All Nippon Airways)Aon Risk SolutionsAppleApplied MaterialsAppvanceAT&TAudience, Inc.Aviat NetworksBank of AmericaBarclaysBay Area News GroupBiotechnology GroupBlach Construction CompanyBoston Consulting GroupBoston Private BankBright FundsBrocadeBunny Inc.CargillCasto TravelCentrifyChargePointChrysalisCity National BankClean Power FinanceClearedge PowerClearStreetCoastal Waters Biotechnology Group LLC (CWBG)DaintreeDBL InvestorsDe Anza CollegedeCartaDeclaration ServicesDeloitte & ToucheDeVry UniversityeBayEchelonEdgewood VenturesEFIEl Camino Hospital GroupEnerNOC, Inc.Enterprise FleetEricssonErnst & YoungETMExtronFairchild SemiconductorFederal Realty Investment TrustFinelite, Inc.FlextronicsFoothill College, FHDA Community College DistrictFortisureFujiFilm Dimatix, Inc.General ElectricGilead SciencesGlencore Recycling, Inc.Good Samaritan HospitalGoVoluntrHeidlebergCementHEVTHitachi Data SystemsHPIBMiControl NetworksInfineraIntel Corp.Intuitive Surgical Inc.iPassJan MedicalJazz PharmaceuticalsJFK UniversityKaiser PermanenteKeasKLIVKovioKQEDLam ResearchLawrence Berkeley National Laboratory
Lawrence Livermore National LabLehigh HansonLinde North AmericaLockheed Martin SpaceLucile Packard Children's HospitalMarvellMcKinsey & CompanyMeru NetworksMetricStream, Inc.Mission CollegeNASA AmesNetAppNetGearNeustarNextSpaceNRGoDeskOhlone College FoundationOSIsoftOUTREACHPG&EPingerPlantronicsPower IntegrationsProgress FinancialProofpoint SystemsPurple Leaf, LLCRepublic UrbanSan Francisco 49ersSan Jose EarthquakesSan Jose GiantsSan Jose Mercury NewsSan Jose State UniversitySan Jose Water CompanySan Jose/Evergreen Community College DistrictSanDiskSanta Clara UniversitySAPSignature FlightSilicon Graphics International (SGI)Silicon Valley Bank (SVB)Silk Road MedicalSolar JunctionSpansionSplice ComunicationsSplunk, Inc.SRI InternationalStellar SolutionsStemStreetlineStrykerSuffolk ConstructionSungevitySunPower Corp.Surplus ServiceSVLGSylvatexSynapticsSYNNEX Corp.SynopsysTaos Mountain Inc.Tech CUTeradataTexas InstrumentsThe Health TrustTiVo, Inc.TranspakTrimble NavigationTsumobiTurner ConstructionUC Santa CruzUPSUS BankVantage Capital PartnersVarianVerizonVigilentVirgin AmericaVoiceBunnyWebcor BuildersWells Fargo BankXactly CorporationYear Up
*23 company responses declined to self identify
Participants
SILICON VALLEY LEADERSHIP GROUP 23
