Taking a clue from the corporate scandals of recent years, Yahoo's finance Web site is offering rankings of how well public companies do on governance activities like auditing and compensation.
On the company profile pages, a box on the right-hand side provides the Corporate Governance Quotient, which tells how the company compares with companies in its index and with its peers, MSNBC.com reported.
The Corporate Governance Quotient, provided by Institutional Shareholder Services (ISS), evaluates the strengths and deficiencies of the governance practices and board of directors of more than 7,500 companies. For example, Yahoo's own quotient as of July 1 was better than 40.2 percent of companies within the Standard & Poor's 500 and better than 92.5 percent of companies in the software and services sector. Meanwhile, Nike's quotient was worse than 97.5 percent of S&P 500 companies and worse than 63.9 percent of companies in the consumer durables and apparel sector, MSNBC.com pointed out. The information has been on the site for three months, with little notice or fanfare. It may be too late for the investors, and employees, of Enron and WorldCom, but not for the millions of investors in the dark on many other companies.
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