UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: stratton2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 83  
Subject: Software Makers Treat Their Owners Well Date: 11/24/2002 3:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
When it comes to good corporate governance, Intuit and Microsoft
rank high among software stocks, while i2 Technologies and Ariba are
among the worst.
...
The ranking draws from a limited sample: the 10 software stocks covered
by Salomon Smith Barney. The investment bank released the list on the
occasion of adding ISS's so-called corporate governance quotient, a
measure of a company's corporate governance policies based on 51
variables, to its research notes.

Company    Corp Gov. Rating
INTU           94.5
MSFT           87.5
SEBL           75
JDAS           64.2
EPNY           44.6
VIGN           41.2
PSFT           37.9
INFA           19.2
ARBA            6.2
ITWO            5.4

Many of the companies plagued by corporate scandals did not rank
well, Bellini said in her note. For instance, Adelphia had a
corporate governance quotient of 16, Worldcom 11 and Enron 42. The
number reflects the percentage of companies the firm outperformed in
the relevant benchmark index (a rating of 95 means that the firm
outperformed 95% of the companies in the relevant benchmark index).
...
So what distinguishes the companies at the top from those at the
bottom? Companies such as Intuit, Microsoft and Siebel Systems have a board
controlled by a majority of independent outsiders; a compensation
committee composed solely of independent outside directors; a CEO who
serves on the boards of two or fewer other companies; directors who
receive all or a portion of their compensation in stock; and non-
employee directors who do not participate in the company's pension
plan, according to ISS and Salomon

http://www.thestreet.com/_yahoo/tech/ronnaabramson/10055797.html

One of the more informative articles I've seen in a while.  Some nice
attributes to shop for in addition to a balance sheet.

Paul
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement