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 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 percent of executives felt that the global economy was recovering, while more than three quarters (76 percent) said it was in severe recession. However, when re-asked the same question at the end of the month, 13 percent of executives felt the economy was recovering and those believing it was still in severe recession declined by nine percent (67 percent).

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

Forty-seven percent of executives are against compensations caps, while another 22 percent are neutral and just 31 percent are in favor. However, 60 percent 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," said 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."