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The Best Boards of Directors

COLUMN (1): Overall Score
COLUMN (2): Survey Score
COLUMN (3): Analysis Score

BOARD PERFORMANCE POLL
COLUMN (4): Shareholder Accountability
COLUMN (5): Board Quality
COLUMN (6): Board Independence
COLUMN (7): Corporate Performance

GOVERNANCE GUIDELINE ANALYSIS
COLUMN (8): Shareholder Accountability
COLUMN (9): Board Quality
COLUMN (10): Board Independence

BW             (1)   (2)   (3)   (4)    (5)  (6)  (7)   (8)   (9)   (10)
RANK          ----------------------------------------------------------
1. CAMPBELL    97.8  47.8  50.0  9.0    9.1  8.8  9.3   10.0  7.3   10.0
   SOUP
2. GENERAL     79.6  43.6  36.0  7.9    8.3  7.7  8.6   8.0   6.7   7.0
   ELECTRIC
3. IBM         76.5  33.5  43.0  8.3    8.5  9.3  9.0   8.7   6.7   10.0
4. COMPAQ      76.3  26.3  50.0  8.8    8.9  8.9  8.6   10.0  8.0   10.0
   COMPUTER
5. COLGATE     75.6  26.6  49.0  9.3    9.4  9.5  8.1   8.7   7.3   10.0
   PALMOLIVE
6. CHRYSLER    74.9  35.9  39.0  8.2    8.0  7.8  8.8   7.3   6.7   6.5
7. JOHNSON &   71.8  35.8  36.0  8.9    8.7  8.8  9.0   8.7   6.0   7.0
   JOHNSON
8. MERCK       71.5  35.5  36.0  9.3    8.8  8.3  8.8   2.7   6.0   8.0
9. HERCULES    70.8  26.8  44.0  9.3    8.8  9.4  9.0   3.3   9.3   10.0
10. EXXON      69.8  25.8  44.0  8.3    8.9  9.4  8.6   10.0  7.3   9.0
11. CERIDIAN   69.6  23.6  46.0  8.0    8.0  8.5  7.0   7.3   8.0   9.0
12. INTEL      69.3  31.3  38.0  7.7    8.3  7.3  8.3   6.7   8.0   8.0
13. GENERAL    66.2  35.2  31.0  7.5    8.5  8.0  7.6   0.7   6.7   10.0
    MOTORS
14. CITICORP   66.0  33.0  33.0  8.5    8.4  8.1  8.9   6.7   6.0   7.0
15. EASTMAN    65.7  29.7  36.0  9.0    8.3  9.0  8.7   3.3   7.3   10.0
    KODAK
16. MICROSOFT  64.1  22.1  42.0  7.3    6.5  7.0  8.3   8.7   7.3   9.0
17. HEWLETT-   63.5  28.5  35.0  8.3    8.3  8.0  8.7   4.7   8.0   8.0
    PACKARD
18. ABBOTT     63.1  27.1  36.0  9.3    9.4  9.4  9.1   5.3   6.7   9.0
    LABORATORIES
19. PHILIP     62.5  28.5  34.0  7.4    8.2  8.8  8.8   6.7   2.0   5.5
    MORRIS
20. COCA-COLA  60.0  42.0  18.0  8.2    8.4  7.9  9.0   3.3   2.7   4.5
21. AMR        59.8  26.8  33.0  8.3    8.0  8.7  8.7   6.0   4.0   9.0
22.CATERPILLAR 57.1  28.1  29.0  9.0    9.0  9.0  8.5   4.0   3.3   9.0
23. SEARS      56.8  30.8  26.0  7.6    7.4  7.4  8.3  -1.3   5.3   7.5
    ROEBUCK
24. TRAVELERS  53.6  27.6  26.0  9.0    8.3  8.3  9.0   2.0   6.0   7.0
25. HOME DEPOT 53.5  27.5  26.0  9.3    9.4  9.4  9.0   4.0   6.7   5.0

DETAILS

1. CAMPBELL SOUP: Wins plaudits for governance practices; disclosed results of 
recent board self-review

2. GENERAL ELECTRIC: CEO sits on one board: his. Each outside director owns 
more than $450K of GE stock

3. IBM: Board's hiring of outside CEO and his results so far win investor favor

4. COMPAQ COMPUTER: Nonexecutive chairman; reviews both board and director 
performance

5. COLGATE PALMOLIVE: Highly independent board boasts stellar cast of 
outsiders, with one insider: CEO Mark

6. CHRYSLER: Directors met with 40 major investors,adopted governance ''best 
practices''

7. JOHNSON & JOHNSON: Board gains kudos for overall quality and accountability 
to shareholders; no pensions

8. MERCK: Created committee last year to evaluate board performance; only 
insider is CEO

9. HERCULES: Board scores high for quality, independence; evaluates self for 
effectiveness

10. EXXON: Outside directors each average $490K of stock; no pensions; annual 
election

11. CERIDIAN: Governance panel does biannual reviews of board and individual 
director performance

12. INTEL: Outside directors each own more than $350K of stock; high marks for 
quality, independence

13. GENERAL MOTORS: Governance principles won favor, but many directors own 
little stock

14. CITICORP: Investors praise performance, yet 4 of 13 are insiders; outsiders 
on too many boards

15. EASTMAN KODAK: Took board too long to get new management, but wins praise 
for doing so

16. MICROSOFT: Some critics say eight-person board is too ''insidey,'' but it 
scores well on all measures

17. HEWLETT-PACKARD: Superior returns win investor approval; 4 of 11 outside 
directors own little stock

18. ABBOTT LABORATORIES: Scores highly on independence; all but 1 of outsiders 
own more than $100K of stock

19. PHILIP MORRIS: Each director owns at least $165K of stock; board ditched 
pensions this year

20. COCA-COLA: No. 3 in survey, but board is cozy, with pensions, potential 
conflicts, staggered elections

21. AMR: CEO is only insider; lacks an active chief of another major public 
company

22.CATERPILLAR: Eight of 10 outsiders sit on too many boards, but board scores 
high for independence

23. SEARS ROEBUCK: Once publicly ridiculed, directors gained investor 
confidence with turnaround

24. TRAVELERS: First major company to pay directors in stock; outsiders average 
$2.1 million in stock

25. HOME DEPOT: Board wins praise for active involvement; directors required to 
regularly visit retail outlets

The highest possible score on this ranking is 100, with half the points coming 
from BUSINESS WEEK's survey of money managers and governance experts and half 
from an analysis of the makeup of each board. For each individual category, the 
maximum score is 10.





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