Buoyed by a sustained stock market rally, executive attitudes about the state of the global economy ticked up in March, though the majority still feel we are in the midst of a “severe recession” according to results from the latest Executive Quiz released Wednesday by The Korn/Ferry Institute.

Additional findings show that executives favor limited involvement by governments in key corporate actions such as layoffs and compensation limits, but the majority feels that bonuses should be returned by executives at companies receiving government bailout funds.

When surveyed at the beginning of March, just seven per cent of executives felt that the global economy was recovering, while more than three quarters (76%) said it was in severe recession. However, when re-asked the same question at the end of the month, 13% of executives felt the economy was recovering and those believing it was still in severe recession declined by 9% (67%).

Other responses probed executive sentiment towards government involvement in corporate actions. Just 11% of executives feel that government is the most important player in leading us out of recession, while business (16%) and consumers (17%) earned slightly stronger support, and 56% believe that all three are equally important.

Forty-seven per cent of executives are against compensations caps, while another 22% are neutral and just 31% are in favor. However, 60% of respondents believe that executives at government-supported companies should give back bonuses.

“We are all hoping that we have hit bottom and are on the way back up, but our survey results show that executives are conflicted about the relationship between business and government,” says Joe Griesedieck, vice chairman and managing director, CEO Services for Korn/Ferry. “What executives do agree upon is that consumers, business and government all play vital roles in our recovery.”

The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm’s online Executive Center. Respondents from more than 70 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz in March 2009.