Report Cards On Governance

Morningstar and ISS both give grades, but their rating systems differ widely

In the wake of countless scandals and financial blowups, Corporate America is increasingly under scrutiny on a wide range of issues, including governance. Quantifying good stewardship is a lot trickier and more subjective than assessing a balance sheet. Several firms make such judgments for institutional investors, but until recently there has been nothing available to help individual investors identify companies with good governance.

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