Letter from the President: Excess Cash Has Become a CEO Issue

From the July/Aug issue of Exchange magazine

Dear AFP Members,

When we were compiling results of the 2010 AFP Liquidity Survey (www.afponline.org/liquidity), we knew that the information would add to the global debate about the economy.

Many members told us about cash sitting on the sidelines at their companies. This is certainly a finance issue. It makes sense that it has also become a CEO issue. And if you have been reading comments from the Administration, it has become a national issue, too.

The AFP Liquidity Survey has received widespread coverage in the financial press as a key indicator of economic growth and recovery.

The good news is that if and when organizations decide to release some of that pent up cash, it will likely flow into research, acquisitions, global expansion -- and into jobs.

We expect to hear more about this topic from you in future AFP surveys, and it will certainly come up in cash investment sessions at the AFP Annual Conference. We look forward to seeing you in San Antonio!

--Jim Kaitz
President and CEO
Association for Financial Professionals