New York, NY (PRWEB) February 15, 2006
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
Chemicals/Commodity - Dow Chemical Co.
Chemicals/Specialty - Praxair
Metals & Mining - Nucor Corp.
Paper & Forest Products - Georgia-Pacific Corp.
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.
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
Electric Utilities - TXU Corp.
Integrated Oil - ConocoPhillips
Natural Gas - Kinder Morgan
Oil & Gas Exploration & Production - EOG Resources
Oil Services & Equipment - Noble Corp.
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.
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
Cable & Satellite - Comcast Corp.
Entertainment - Time Warner
Publishing & Advertising Agencies - Gannett Co.
Radio & TV Broadcasting - Clear Channel Communications
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.
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.
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