To: Ali Chen who wrote (96446 ) 1/16/2000 1:45:00 AM From: nihil Respond to of 186894
Ali, I am sure you will enjoy the story about corporate governance in this weeks Business Week (Jan 24th, 2000). Don't think the story is yet on the free page (http://www.businessweek.com) but it is available if you are an on-line subscriber. Here are a few extracts: BUSINESSWEEK ONLINE : JANUARY 24, 2000 ISSUE SPECIAL REPORT -- CORPORATE GOVERNANCE ... For the third time in four years, we surveyed Wall Street's biggest investors and most prominent governance experts for their views of the best and worst boards in America. The results, besides GE's No. 1 standing? Propelled by superior performance for shareholders, the boards of IBM (IBM), Home Depot (HD), Intel (INTC) , and Cisco Systems (CSCO) are also near the top. And even though governance pioneers Compaq Computer Corp. (CPQ) and Campbell have seen performance slump, their boards still rank among the best. There was consistency at the bottom of the barrel as well. For the second consecutive time, the board of Walt Disney Co. (DIS) was named the worst in America. CEO Michael D. Eisner, under pressure from investors ever since the board's $75 million severance package to former President Michael Ovitz two years ago, is coming under increasing fire for Disney's recent lackluster performance. Institutional shareholders want Eisner to put more independent directors on a board that, despite some improvement, remains packed with Eisner chums. Since May, 1998, Disney has lost nearly 18% of its market value, more than $15 billion. Most of the boards on the ''worst'' list, in contrast, end up there because of a major downturn or controversy, such as an oversized pay package or frequent repricing of stock options. Not surprisingly, then, newcomers to BUSINESS WEEK's list of rogue boards include the likes of Cendant (CD), Rite Aid (RAD), and Waste Management (WMI). All have made headlines for financial meltdowns and performance woes that caused critics pointedly to ask, ''Where was the board?'' [AMD has been on the list at least two years! -- n] ... By John A. Byrne _ _ Copyright 2000, by The McGraw-Hill Companies Inc.