July 21, 2004

CEOs Fail Candor Test

By Selena Maranjian

If you read books about corporate governance, you may be familiar with Laura Rittenhouse, author of Do Business With People You Can Trust: Balancing Profits and Principles. Rittenhouse recently reported the results of her fifth annual Rittenhouse Rankings Survey, noting that, “For the fifth consecutive year, we’ve found a positive correlation between companies that rank high in our CEO communication survey and superior stock price performance.” Her firm also noted that, “Top-ranked companies in the survey increased their share prices over a two-year period by 21.5%, while bottom-ranked companies saw …more