A new survey of more than 100 CEOs of companies listed on the New York Stock Exchange finds that corporate chiefs are spending much more time on governance and compliance, but that they believe their boards are benefiting.

The study finds that 80% of CEOs say they spend more time on regulatory and compliance issues than five years ago. Almost 70% find compliance with section 404 of Sarbanes-Oxley the most demanding governance task.

While a majority of CEOs question the balance between the investment required and the resulting benefits, most CEOs agree that Sarbanes-Oxley and Exchange governance rules have contributed to board members being more informed (66%) and better engaged (72%).

Last week, the Canadian Securities Administrators announced that they would push back plans for a rule similar to SOX 404 until 2007. The CSA said its timeline for the internal control reporting project is being extended in order to allow sufficient time: to assess the potential impact of new developments in the U.S.; to fully consider the comments on its proposed rule; and, to respond to concerns from issuers and their advisors regarding the proposed timeline. The earliest an internal control reporting rule would apply in Canada is for financial years ending on or after June 30, 2007.

The NYSE survey also found that more than one-third (37%) of CEOs said it is easier to attract investors than it was five years ago. About another third (31%) said it is about the same. Investors today focus more on traditional performance measures such as free cash flow, operating income, stock price and cash flow from operations, they said.

The chief executives also indicated that they are generally optimistic in finding new markets and new products for growing their companies and serving customers. The U.S. is seen as the most promising market for growth, followed by Japan and Western Europe, while emerging markets present an opportunity rather than a threat, it notes. Emerging markets are viewed as an opportunity by a majority of NYSE CEOs (62%). Although 55% also view the current global trade environment as unfavorable. More than half (53%) of the CEOs also said their companies have moved, are currently moving or plan to move some operations offshore.

A majority of NYSE CEOs said that management teams will have the greatest impact on company performance, followed by operational efficiency and new product development. They are concerned about regulation, energy, health care costs and the changing global economy. The greatest corporate budget increases are expected to be in the areas of capital expenditures, energy costs and technology. More than half of the group (52%) expects M&A activity to increase, and they say the greatest revenue growth is seen coming from new products, new markets and acquisitions.