Eaton receives 99th percentile corporate governance ranking among capital goods companies
Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today that it received a 98.9 corporate governance rating as of April 2 from Institutional Shareholder Services, Inc. (ISS) in its capital goods category. The score means Eaton ranked above 98.9 percent -- or 369 -- of the 374 capital goods companies.
Eaton also scored above 93.5 percent of companies in the Standard & Poor's 500 Index.
"We are proud of our record in corporate governance practices and are pleased to be rated highly for what has been a long-standing commitment and strength at Eaton," said Alexander M. Cutler, Eaton chairman and chief executive officer.
ISS, a leading provider of proxy voting and corporate governance services, measures 61 corporate governance variables in eight core categories. The categories include: board of director issues; audit issues; charter and bylaw provisions; laws of the state of incorporation; executive and director compensation; qualitative factors; stock ownership; and director education.
Eaton benefited from its policies and practices in a broad range of governance areas, such as:
• Only one Eaton executive is on the board and all of the outside board members are independent.
• The company has an active governance committee.
• The governance, compensation and organization, audit, and finance committees are all comprised entirely of independent directors.
• The outside directors meet regularly without the CEO or any other management representatives.
• Stock ownership guidelines exist for board members and company executives.
"We will continue to work in concert with our Board of Directors on refinements to ensure that Eaton Corporation's practices remain a benchmark for ethics and governance excellence," Cutler said.
Eaton Corporation is a global $7.2 billion diversified industrial manufacturer that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent drivetrain systems for fuel economy and safety in trucks. Eaton has 51,000 employees and sells products in more than 50 countries.