(Answers for November 1999)
| 1. | Isn’t it true, Sid, that no busy chief executive actually is actively involved in his company’s annual report?
Answer: No, that isn’t truenot if you believe, as I do, two things: First, producers of the reportsthe men and women on the firing linesay 93 of every 100 CEOs are actively involved in the project. Second, each of the CEOs of those companies whose 1998 annuals were adjudged the five best penned words of praise for the document’s enormous potential.
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| 2. | Get serious: No one but you really believes the annual report’s primary audience is the individual stockholder. Isn’t that true?
Answer: No, not if one believesand I dosuch CEOs as AFLAC’s Dan Amos. He says the best report is aimed at the individual shareholder. Then, he says, it does the best job for all audiences. (He says aiming at institutional investors, the reverse isn’t necessarily true.)
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| 3. | Here’s an easy one for you, Sid: Isn’t it true that because you’re trying hard to curry favor with corporations here and abroad, you name more and more each year to your "world-class" list?
Answer: False again. Achieving world-class status involves scoring at least 100 of a possible 135 points, as evaluated against my 15 copyrighted criteria on what makes a good report. Last year, close to four dozen scored 100 points or more. So far this year: 42. Roughly half a dozen fewer.
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| 4. | Foreign reportsthose produced other than in North Americaare much better, vastly improved, actually. True or false?
Answer: Again, false. Other than perennial perfectionist Reuters, and maybe Bahrain’s Batelco, Germany’s VEBA, none of the 10.7% of our non-North American universe is any great shakes. Meaning, nothing to write home about. (Translated, read: woeful.)
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| 5. | The companies you name to your world’s worst
listdon’t they tend to be pretty small potatoes? Does any well-known company ever end up on your hit list?
Answer: You decide: Over the years, we’ve cited such big names as Time Warner, Armstrong World Industries, Tenneco, DuPont. This year’s crop of bad boys ranges from Reebok to Rockwell. Neither is what I’d call "small potatoes." Would you?
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