Honeywell Chairman and CEO Dave Cote Ranks Second in 2014 Rittenhouse Rankings for Engaging and Informative Shareowner Communications
July 24, 2015
Honeywell Chairman and CEO Dave Cote ranked second in the recently released 2014 Rittenhouse Rankings Candor Survey for his efforts in engaging and informative communications with company shareholders. The survey reviews shareowner letters from 100 companies of the Fortune 500 to objectively analyze CEO words and context to produce reliable, relevant, and comparable Candor Scores and Rankings. High scoring shareowner letters are typically 1) Above average in total number of words; 2) Have higher vision and leadership scoring; and 3) A low “FOG” score (Fact-deficient, Obfuscating, Generalities). In FOG, points are deducted for clichés, business jargon, incomplete explanations of key statements, euphemisms, platitudes and contradictory statements.
The survey reported that the companies that excel in candor in shareholder communications substantially outperform the market. Top-ranked companies in the 2014 Rittenhouse Rankings Candor Survey outperformed the S&P 500 by an average of 7.4 percent between Q2 2014 and Q2 2015, and, over the past five years, top-quartile companies have outperformed the market by an average of 9.5 percent.
Candor scores are based on executive language which is vital not only for describing the elements that make up a corporate culture, but for continuously reinforcing and reshaping that culture offering unique insights into the “soft” drivers of performance and culture.
Rittenhouse Rankings is a professional organization that works with CEOs and CFOs to create accountability cultures that sharpen execution, grow trust, and achieve financial leadership.
To view the top and bottom-ranked companies in the survey download the Candor and Culture Report.