Sid Cato -- May 2003 Quiz Answers

(Answers for May 2003)

1. You're most pleased with impact the Sarbanes-Oxley Act is having on 2002 annual reports, first crop since the Congress-enacted regulations. True or false?
Answer: Decidedly the latter. Given all the hoopla, one could have expected a whole new attitude toward honesty, integrity and full disclosure in annual reports. I perceive little additional honesty, equally scant disclosure. To my way of thinking, integrity in the corner office obviously can't be fine-tuned by government edict.

2. One 2002 report you're especially fond of, despite its length, is by Cincinnati-based Cinergy. True or false?
Answer: False. Its 116 pages make it going-on three times the current worldwide length, 46.8 pages. Besides, I didn't find its report sufficiently forthright. Moreover, its CEO went overboard proclaiming his honesty and integrity—which, after all that, I found very much wanting. In my May 2003 newsletter, I sum it up as "much ado about nothing."

3. While you oppose excessive use in the annual report of photos of the CEO, in Cinergy's case it was handled expertly, with finesse. True or false?
Answer: False. Seven photographs of the boss man—one occupying most of a full page—indicate to me the out-of-control ego of the man in the corner office. That and an inability, a reluctance, to deal directly with earnings that, frankly, weren't all that great.

4. The best 2002 reports you've seen so far emanate from news media companies. True or false?
Answer: Yes and no. I found the 14-page letter in the Washington Post Co.'s report, for instance, engrossing reading, if excessively long; the print piece overall was woeful. Besides, a 14-page missive (going on five times the current worldwide average) to me is obscene. Gannett's annual likewise was wanting, as was Dow Jones'. The Knight Ridder report, though, appears destined for top-10 designation. Truly superb.

5. New subscribers to your monthly Newsletter on Annual Reports pretty much assure themselves, at worst, of a pass on criticism. True or false?
Answer: Try telling that to the annual report producers of KeySpan and, to a lesser degree, Safeco. The former especially came in for severe criticism. Safeco's report wasn't perfect, but it certainly had hugely redeeming qualities, not least its (1) letter to shareholders and (2) celebration of the individual employee. And its CEO—what a guy!

6. You've never gotten over your objection to AFLAC's use of its quacking duck in TV commercials. True or false?
Answer: False. I admit I was wrong in disliking focus on what today clearly is one of the best, most memorable, corporate symbols—if one can use that appellation concerning a quacking duck with rhythm. More important, AFLAC's 2002 annual clearly is among the world's best again this year.

Return to May 2003 quiz page

Test your knowledge by taking previous monthly quizzes


	1.	You're most pleased with impact the Sarbanes-Oxley Act is having on 2002 annual reports, first crop since the Congress-enacted regulations. True or false? *Answer:* Decidedly the latter. Given all the hoopla, one could have expected a whole new attitude toward honesty, integrity and full disclosure in annual reports. I perceive little additional honesty, equally scant disclosure. To my way of thinking, integrity in the corner office obviously can't be fine-tuned by government edict.

	2.	One 2002 report you're especially fond of, despite its length, is by Cincinnati-based Cinergy. True or false? *Answer:* False. Its 116 pages make it going-on three times the current worldwide length, 46.8 pages. Besides, I didn't find its report sufficiently forthright. Moreover, its CEO went overboard proclaiming his honesty and integrity—which, after all that, I found very much wanting. In my May 2003 newsletter, I sum it up as "much ado about nothing."

	3.	While you oppose excessive use in the annual report of photos of the CEO, in Cinergy's case it was handled expertly, with finesse. True or false? *Answer:* False. Seven photographs of the boss man—one occupying most of a full page—indicate to me the out-of-control ego of the man in the corner office. That and an inability, a reluctance, to deal directly with earnings that, frankly, weren't all that great.

	4.	The best 2002 reports you've seen so far emanate from news media companies. True or false? *Answer:* Yes and no. I found the 14-page letter in the Washington Post Co.'s report, for instance, engrossing reading, if excessively long; the print piece overall was woeful. Besides, a 14-page missive (going on five times the current worldwide average) to me is obscene. Gannett's annual likewise was wanting, as was Dow Jones'. The Knight Ridder report, though, appears destined for top-10 designation. Truly superb.

	5.	New subscribers to your monthly Newsletter on Annual Reports pretty much assure themselves, at worst, of a pass on criticism. True or false? *Answer:* Try telling that to the annual report producers of KeySpan and, to a lesser degree, Safeco. The former especially came in for severe criticism. Safeco's report wasn't perfect, but it certainly had hugely redeeming qualities, not least its (1) letter to shareholders and (2) celebration of the individual employee. And its CEO—what a guy!

	6.	You've never gotten over your objection to AFLAC's use of its quacking duck in TV commercials. True or false? *Answer:* False. I admit I was wrong in disliking focus on what today clearly is one of the best, most memorable, corporate symbols—if one can use that appellation concerning a quacking duck with rhythm. More important, AFLAC's 2002 annual clearly is among the world's best again this year.