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U.S. Corporate Governance Better Than

November 14, 2005

America is far from perfect when it comes to corporate governance, with examples such as WorldCom Inc. and Enron Corp., said Adelphia Communications Corp., Coudersport, PA. But U.S. companies still do better than most in everything from board disclosure and accountability to shareholder rights, according to a study of 1,600 companies released on Monday by governance ratings agency GovernanceMetrics International. The study found that just 1% of the companies researched received a perfect score based on more than 600 data points and seven broad categories over the past five months. However, 15 of the 17 companies that received that highest possible ranking are based in the U.S. Among the top scorers were Exxon Mobil Corp., Eastman Kodak Co., McDonald’s Corp., Allstate Corp., PepsiCo Inc. and Colgate-Palmolive Co.
Companies based in 15 countries were included in the study. Canadian companies took the crown for the highest overall average score, followed by the UK and the U.S. Japan ranked at the bottom, with 10 of its companies receiving the lowest score for corporate governance
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