Does Good Governance Pay?
Rival Campbell Soup is a leader in adopting innovative board practices. Its shares have outperformed Heinz, a governance laggard, as well as the market. Here's how they compare: BEST PRACTICES CAMPBELL SOUP HEINZ Majority of outside Only one insider Ten of 19 members directors among 15 directors are insiders Bans insiders on Yes No: CEO is nominating committee chairman of panel Bans former Yes No: Three directors execs from board are ex-Heinz execs Mandatory 70, with none 72, but six directors retirement age over 64 are grandfathered Outside directors Annually Never meet without CEO Appointment of Yes No ''lead director'' Governance Yes No committee Self-evaluation of Every two years None board's effectiveness Director None Yes pensions Share-ownership 3,000 shares None requirement required DATA: PROXY STATEMENTS, BUSINESS WEEK
Updated Sept. 4, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.