Sid Cato -- July 2003 Quiz Answers

(Answers for July 2003)

1. Inevitably, there's good news and bad in conjunction with the 2002 crop of annual reports worldwide. True or false?
Answer: True. The good news, for instance, is that annuals are twice so positive as among 1986 annuals, first crop to be assessed by utilizing the Cato Positive Index®. Back then, the CPI was 4.1%, stands currently at 8.7%.

2. That reports are "twice so positive"...that's good, right?
Answer: True—that's good...that they're twice so positive as 16 years earlier. Still, they're not so positive—that is, contain three dozen elements of a report's positive or negative nature—as five years ago. Then, 1997 reports averaged a 14% Cato Positive Index—approaching twice the current CPI. Meaning, they contained twice the number of elements I advocate.

3. After assessing loads of 2002 reports, you're not feeling terribly optimistic about this specialized genre. True or false?
Answer: True. This year (and among year-ago annuals) has seen a downward drift. Managements worldwide, it seems, are taking delight in denigrating the annual report.

4. Why do think that is? Is it because CEOs don't feel comfortable "letting it all hang out," to use a phrase popular a few years back?
Answer: True—that is, that's right. CEOs seldom come from the outgoing ranks of journalism or broadcasting—or, even, sales or marketing. More often than not, their background is manufacturing or finance. So most feel uncomfortable making public pronouncements, let alone including them in a book with a lasting shelf life—a bound document that'll be around as long as the company continues to exist, and then some.

5. Loads actually end up on your "world-class" list, scoring at least 100 of a potential 135 points. True or false?
Answer: False. The current figure: One in eight 2002 reports has scored 100 or more points, same (strictly by coincidence) as a year earlier.

6. You have yet this year to find a letter you liked. True or false?
Answer: False. I long-since applauded the letter in the IBM report. I also applaud Unisys'. And while he's chairman, rather than CEO, the guy who has helped add class and give direction to France-based Cap Gemini Ernst & Young has penned an engrossing missive, decidedly first person. Well worth reading.

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	1.	Inevitably, there's good news and bad in conjunction with the 2002 crop of annual reports worldwide. True or false? *Answer:* True. The good news, for instance, is that annuals are twice so positive as among 1986 annuals, first crop to be assessed by utilizing the Cato Positive Index®. Back then, the CPI was 4.1%, stands currently at 8.7%.

	2.	That reports are "twice so positive"...that's good, right? *Answer:* True—that's good...that they're twice so positive as 16 years earlier. Still, they're not so positive—that is, contain three dozen elements of a report's positive or negative nature—as five years ago. Then, 1997 reports averaged a 14% Cato Positive Index—approaching twice the current CPI. Meaning, they contained twice the number of elements I advocate.

	3.	After assessing loads of 2002 reports, you're not feeling terribly optimistic about this specialized genre. True or false? *Answer:* True. This year (and among year-ago annuals) has seen a downward drift. Managements worldwide, it seems, are taking delight in denigrating the annual report.

	4.	Why do think that is? Is it because CEOs don't feel comfortable "letting it all hang out," to use a phrase popular a few years back? *Answer:* True—that is, that's right. CEOs seldom come from the outgoing ranks of journalism or broadcasting—or, even, sales or marketing. More often than not, their background is manufacturing or finance. So most feel uncomfortable making public pronouncements, let alone including them in a book with a lasting shelf life—a bound document that'll be around as long as the company continues to exist, and then some.

	5.	Loads actually end up on your "world-class" list, scoring at least 100 of a potential 135 points. True or false? *Answer:* False. The current figure: One in eight 2002 reports has scored 100 or more points, same (strictly by coincidence) as a year earlier.

	6.	You have yet this year to find a letter you liked. True or false? *Answer:* False. I long-since applauded the letter in the IBM report. I also applaud Unisys'. And while he's chairman, rather than CEO, the guy who has helped add class and give direction to France-based Cap Gemini Ernst & Young has penned an engrossing missive, decidedly first person. Well worth reading.