Institutional Investor Identifies America's Most Shareholder Friendly Companies in its First-Ever Survey

Share Article

Institutional Investor magazine identifies America's Most Shareholder-Friendly Companies. The results for 62 industry sectors, published in the February issue of Institutional Investor for the first time, reflect the views of more than a thousand portfolio managers and analysts in the U.S. and abroad.

Amid a new era of shareholder activism, marked by hedge funds and other institutions seeking to influence the management and governance of publicly owned corporations, Institutional Investor magazine decided to identify America's Most Shareholder-Friendly Companies. The results for 62 industry sectors, published in the February issue of Institutional Investor for the first time, reflect the views of those who matter most: more than a thousand portfolio managers and analysts in the U.S. and abroad. All were asked to name the companies in their areas of expertise that are the most attentive to shareholders. The survey instructed respondents to consider the quality of the companies’ governance and investor relations practices when voting.

In addition to strong financial performance and solid governance policies — such as an independent board of directors, sensible executive compensation and a lack of antitakeover defenses — investors above all want companies to be honest with them.CEOs who are accessible and forthright today can avoid locking horns with activist shareholders tomorrow, say more than a few money managers. Survey respondents say they want companies to go above and beyond good governance.

Below is a sampling of top companies in specific industry sectors. For more information and complete rankings, please visit http://www.InstitutionalInvestor.com/

Sector - Company

BASIC MATERIALS

Chemicals/Commodity - Dow Chemical Co.

Chemicals/Specialty - Praxair

Metals & Mining - Nucor Corp.

Paper & Forest Products - Georgia-Pacific Corp.

CAPITAL GOODS/INDUSTRIALS

Aerospace & Defense Electronics - United Technologies Corp.

Airfreight & SurfaceTransportation - United Parcel Service

Business & Professional Services - Manpower

Electrical Equipment & Multi-Industry - General Electric Co.

ENVIRONMENTAL SERVICES - Republic Services

Machinery - Eaton Corp.

Packaging - Ball Corp.

CONSUMER

Airlines - Southwest Airlines Co.

Apparel, Footwear & Textiles - Coach

Autos & Auto Parts - Johnson Controls

Beverage - PepsiCo

Cosmetics, Household & Personal Care Products - Procter & Gamble Co.

Food - Hershey Co.

Gaming & Lodging - Harrah’s Entertainment

Homebuilders & Building Products - Ryland Group

Leisure - Carnival Corp.

Restaurants - Applebee’s International

Retailing/Broadlines & Department Stores - Nordstrom

Retailing/Food & Drug Chains - CVS Corp.

Retailing/Hardlines - Home Depot

Retailing/Specialty Stores - Chico’s FAS

Tobacco - Altria Group

ENERGY

Electric Utilities - TXU Corp.

Integrated Oil - ConocoPhillips

Natural Gas - Kinder Morgan

Oil & Gas Exploration & Production - EOG Resources

Oil Services & Equipment - Noble Corp.

FINANCIAL INSTITUTIONS

Banks/Large-Cap - Wells Fargo & Co.

Banks/Midcap - M&T Bank Corp.

Brokers & Asset Managers - Lehman Brothers Holdings

Insurance/Life - Aflac

Insurance/Nonlife - Allstate Corp.

Mortgage Finance - Countrywide Financial Corp.

REITs -AMB Property Corp.

Specialty Finance - American Express Co.

HEALTH CARE

Biotechnology - Genentech

Health Care Facilities - HCA

Health Care Technology & Distribution - AmerisourceBergen Corp.

Managed Care - UnitedHealth Group

Medical Supplies & Devices - Medtronic

Pharmaceuticals/Major - Eli Lilly and Co.

Pharmaceuticals/Specialty - Allergan

MEDIA

Cable & Satellite - Comcast Corp.

Entertainment - Time Warner

Publishing & Advertising Agencies - Gannett Co.

Radio & TV Broadcasting - Clear Channel Communications

TECHNOLOGY

Computer Services & IT Consulting - Accenture

Electronics Manufacturing Services - Jabil Circuit

Imaging Technology - Adobe Systems

Internet - Yahoo!

IT Hardware - Dell

Semiconductor Capital Equipment - KLA-Tencor Corp.

Semiconductors - Texas Instruments

Software - Symantec Corp.

TELECOMMUNICATIONS

Data Networking & Wireline Equipment - Cisco Systems

Telecom Equipment/Wireless - Motorola - Qualcomm *

Telecom Services/Wireless - Sprint Nextel Corp.

Telecom Services/Wireline - Verizon Communications

The survey also asked respondents to state which companies do the best job at investor relations. According to the survey results, the most valuable service IR officers can provide is transparent, high-quality financial information. The two next most important are the credibility, integrity and candor of the investor relations team and the ability to provide investors with access to top management.

To identify the companies that handle investor relations the best, we surveyed the investors themselves — more than 841 portfolio managers and analysts at more than 392 asset management firms around the world. We also polled every brokerage firm analyst who received votes in our 2005 All-America Research Team rankings.

Contact:

Liza Shevitz

212-224-3623

http://www.institutionalinvestor.com

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Liza Shevitz
Visit website