Take insurance, for instance: Twin Cities-based St. Paul Cos. excelled as far back as its 1990 annual report to shareholders, its document containing many if not all the elements advocated by annual report activist Sid Cato, based here.

Cato contrasted St. Paul’s performance with that of CNA Financial, "an insurance company regardless of what it calls itself." He said that traditionally its annual "is awful. As it is this year." He said CNA "more than once" has made his list of world’s worst reports. Its ’98 product, he said, contains "precious little of substance."

In the pharmaceutical field, Merck, by Cato’s standards, far outdistanced rival Pfizer. Merck’s current report with 102 points scored sufficiently well to qualify for Cato’s "world-class" list—those scoring at least 100 of a potential 135 points. He said Pfizer "failed to look adequately attractive, let alone contain content advocated."

This is Cato’s 17th year of monitoring the world’s key corporate communique', using computer programs he invented. As a contributing editor to Chief Executive, each year he selects the world’s 10 best and 10 worst reports.