Maintaining Optimism in the Face of Reality. Occasional observations on the state of the world, society, business and politics. Usually anchored by facts, always augmented by opinion.

Google Update  | e-mail post

The Financial Times reports on Google's corporate governance practices raising the ire of Institutional Shareholder Services:
The company motto is: "Don't be evil".

However, ISS assigned Google a "corporate governance quotient" of 0.2 out of a possible 100, close to zero and lower than any other S&P 500 company.

"I'd say those numbers sound pretty darn evil," said Patrick McGurn, senior vice-president at ISS.
Darn evil, indeed. ISS identified 21 weaknesses in their governance practices including their dual-class share structure and general insider power, about which I recently wrote at length.

Of course, the same day as ISS releases this, the stock continues to creep up. Clearly The Register was correct in writing that the ISS review was "a little unfair, we think, as it places too little emphasis on what shareholders really want, which is apparently an abundance of pictures of pretty colored balls on the corporate web site, and a rating that evaluates the general cuteness of the founders."

e-mail post | Link Cosmos | [Permalink]  |  | Monday, August 23, 2004
Comments: Post a Comment

This page is powered by Blogger. Isn't yours?