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Governance Insight Alert: Shareholder rights trends and 20 company events

Last week, on the eve of proxy and AGM season – the annual moment when companies are directly accountable to their shareholders – two important figures in the governance and investment world made noteworthy statements regarding shareholder rights and responsibilities. SEC Commissioner Daniel Gallagher, and to a lesser extent Delaware Supreme Court Chief Justice Leo […]

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Governance Insight Alert: Alliance Data Systems and 20 other companies

On February 20, Alliance Data Systems Corporation (NYSE: ADS) disclosed new long-term equity incentive awards for its executives, including about $5.2 million granted to CEO Edward Heffernan. The award by itself is not notable, since the vast majority of incentive awards are granted during the first fiscal quarter. However, few companies choose to disclose these […]

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Governance Insight Alert: CAJ and 20 other companies

Canon Inc. (TYO: 7751; ADR: CAJ) recently announced that it would appoint a pair of outside directors to its board, the first outsiders to serve on the electronics manufacturer’s board.  Long criticized for its insular boards, Japan, Inc. has shown progress of late in improving its governance standards.  This step follows the appointment of three […]

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Governance Insight Alert: OMC and 19 other companies

On January 21, 2014, Omnicom Group Inc. (OMC) filed suit in the U.S. District Court to exclude a confidential-voting shareholder proposal from its 2014 proxy ballot. The target of the suit: John Chevedden, an active filer of governance-related shareholder resolutions for well over a decade. This is the third lawsuit filed by an issuer against […]

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Governance Insight Alert: Freeport McMoRan Copper & Gold

 Governance Insight Alert Just before the holidays, Freeport McMoRan Copper & Gold (FCX) announced that it had torn up its employment agreement with its CEO, Richard Adkerson, who would henceforth be employed “at will.” FCX is no stranger to pay controversy, having lost two of its three say-on-pay votes, last year with more than 70% […]

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GMI Ratings’ Governance and Accounting Risk Data Now Available Through FactSet

Investors Can Now Seamlessly Integrate ESG and Accounting Risk Into Their Investment Process  New York; November 6, 2013 – GMI Ratings, the leading provider of research, data and analytics on environmental, social, governance and accounting-related risks, today announced that FactSet, (NYSE: FDS | NASDAQ: FDS), a leading provider of integrated financial information data and analytical […]

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GMI Ratings Names New Head of Research

Gary Hewitt to Build Upon GMI’s Reputation for Top-Notch Qualitative and Quantitative Research and Thought Leadership Across Environmental, Social, Governance and Forensic Accounting  New York – November 5, 2013 – GMI Ratings, the leading provider of research, data and analytics on environmental, social, governance (ESG) and accounting-related risks affecting the performance of public companies, today […]

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A Sirius Lesson in Poor Pay Practices

By Scott Patterson, Compensation Analyst Manager In anticipation of GMI Ratings 2013 CEO Pay Survey scheduled for release on October 22, today’s report details how Mel Karmazin CEO of Sirius made more than $255M in Total Realized Compensation in 2012. Next week’s full report will feature an analysis in CEO Pay Changes for the Russell […]

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Event Alerts for Responsible Investors, 7.12.2013

In this week’s Event Alerts for Responsible Investors, we included 21 companies whose ESG and accounting risk profiles have been affected by recent events. Download the full Event Summary. Companies Environmental Social Governance Accounting Royal Dutch Shell Plc (AMS:RDSA) GlaxoSmithKline plc (LON:GSK) OSX BRASIL SA (SAO:OSXB3) G4S plc (LON:GFS) Ashland Inc. (NYSE:ASH) Target Corporation (NYSE:TGT) VIVUS, Inc. (NASD:VVUS) Serco Group plc (LON:SRP) Wisconsin […]

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Update on McKesson

McKesson Corporation made headlines on June 21, 2013 upon the release of its annual proxy statement.  According to the filing, CEO John Hammergren would have been due a pension of $159 million had he retired from the company on March 31, 2013. Mr. Hammergren’s pension, more than double the next largest pension amount in the […]

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Twenty-One U.S. CEOs with Golden Parachutes of More Than $100 Million (Jan. 2012)

Last year, GMI Ratings released this report identifying the largest severance packages paid to CEOs since 2000. In total, the 21 CEOs included in the report had received severance pay of almost $4 billion in “walk-away” packages each in excess of $100 million. The report identifies stock and option awards, pensions and other deferred compensation […]

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The Impact of Fraud on Shareholder Value: The Price You Do Not Have to Pay

By James A. Kaplan, Vice Chair, GMI Ratings Rigorous statistical research continues to demonstrate that corporate accounting fraud remains common and costly. Aside from tangibly harming the shareholders of fraudulent and even non-fraudulent firms, misleading accounting and disclosure practices weaken the integrity of capital markets; they further obscure issuer risks and undermine investors’ trust in […]

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GMI Ratings’ Forensic Alpha Model (FAM) Uses Forensic Measures of Issuer Risk to Predict Equity Returns Globally, Across Industries, Large-cap and Small-cap Portfolios

*Note: Following the release of this announcement, the name of the model was changed to Forensic Alpha Model (FAM). New York (June 12, 2013) – GMI Ratings announced today the formal launch of the Quantitative Equity Model (QEM), which uses governance and accounting-related forensic risk metrics to predict equity returns. In connection with this launch, […]

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Exide Technologies Files for Chapter 11 Bankruptcy Protection

By Lev Janashvili Automotive battery maker Exide Technologies Inc. filed for Chapter 11 bankruptcy protection today. According to filings with the U.S. Bankruptcy Court in Delaware, the company plans to implement a restructuring de-lever balance sheet and create a sustainable capital structure. Since June 2012, GMI Ratings’ Financial Distress Risk Model has rated Exide Technologies […]

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Study Confirms the Buffet Rule on Boards: Collegiality Trumps Independence

By Solange Charas, Guest Blogger In prior blogs, my research premise and finds were described.  Essentially, my research shows that high and low governance-rated boards demonstrate a particular behavioral pattern in the board room.  There are distinct realms of the boardroom (front and back stage), each with their own unique social norms.  Directors falter when […]

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GMI Ratings and Ethix SRI Advisors Form Strategic Partnership

GMI to Offer Subscribers Access to Global Portfolio Screening Tools for Responsible Investors New York and Stockholm (June 10, 2013) – GMI Ratings and Ethix SRI Advisors have formed a partnership to integrate Ethix SRI data into GMI Ratings’ flagship research platform, GMI Analyst. The new data will allow subscribers to GMI Analyst to evaluate […]

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Director Tenure and Gender Diversity in the United States: A Scenario Analysis

Our new report examines two related issues in corporate governance: poor board diversity and long tenures of board directors. Specifically, this report analyzes the potential effect of replacing various percentages of long-tenured male directors with women. For example, if less than half (46%) of the male directors in the S&P 500 with 10-plus years of […]

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Event Alerts for Responsible Investors, 5.31.2013

In this week’s Event Alerts for Responsible Investors, we included 19 companies whose ESG and accounting risk profiles have been affected by recent events. Download the full Event Summary. Companies Environmental Social Governance Accounting Wal-Mart Stores, Inc. (NYSE:WMT) NASDAQ OMX Group, Inc. (NASD:NDAQ) General Electric Company (NYSE:GE) Berkshire Hathaway Inc. (NYSE:BRK.A) Telstra Corporation Limited (ASX:TLS - US Listed) Total SA (EPA:FP - US Listed) Fidelity […]

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Adidas Missteps Go Beyond Its Supply Chain

By Damion Rallis, Senior Research Associate Last month, an eight-story garment factory building collapsed in Bangladesh, killing more than 1,100 people. The Rana Plaza factory collapse is not only the world’s worst garment-industry disaster, but also a resounding wake-up call to the hazardous conditions present in apparel industry factories all across the developing world. As […]

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The Decline of Accounting and the Rise of Forensic Finance

By Lev Janashvili At the GMI Ratings seminar on May 14, NYU finance professor Dr. Baruch Lev spoke memorably about the decline of traditional accounting and our collective hope for a superior model. The relevance of this topic for investors today continues to become clearer, as evidence accumulates about the incidence and systemic repercussions of […]

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