So far, he writes in Issue No. 211 of his Newsletter on Annual Reports, the key corporate communiqué has a negative rating—a minus 0.7 percent—overall. He bases that on "36 computerized indicators of a report's positive or negative nature," ranging from "financial disclosure that's more than what's customary or required by the Securities and Exchange Commission" to "complete honesty, especially in the letter to shareholders."

He said 1997 annuals, for example, averaged 14 percent, '99s nearly 11 percent.

He took to task the Walt Disney report and, especially, its CEO, Michael Eisner, who he said is "infamous for his falling outs with heirs apparent." Cato said not only has the Disney report previously made his list of world's worst—in Chief Executive, for whom he's a contributing editor—but its appearance suggests the company exists in "a time warp." He said that a decade ago its report appeared old-fashioned and "has changed little in the interim."