WASHINGTON, Aug. 13, 2012 (GLOBE NEWSWIRE) -- Berkshire Hathaway Chairman and CEO Warren Buffett's annual letter to shareholders tops the list of all Fortune 200 companies, according to NACD Directorship, the magazine of the National Association of Corporate Directors (NACD), and its inaugural list of the Best Annual Shareholder Letters.
An often-overlooked section of a company's annual report, the shareholder letter offers the CEO's— and in those cases where there is a separate chairman, the board's—insights on strategy, innovation, accountability and stakeholder relations and provides a more vivid picture of the state of a company than financials alone. It also allows stakeholders the opportunity to evaluate both the tone and the message of a company's leader.
NACD Directorship analyzed CEO letters to shareholders from Fortune 200 companies' 2011 annual reports and selected the best of those letters that met the following criteria:
- A dynamic assessment of the company's performance.
- Transparency on both positive and negative news.
- A clear outline of steps to tackle company challenges.
- A strategic process linked to changes in environment.
- Insights into the quality of management and its commitment to creating shareholder value.
At the top of the list was Berkshire Hathaway, where CEO and Chairman Warren Buffett reiterates his commitment to shareholders by expounding on both the successes and disappointments of the year. Among the companies that also made the list are Coca-Cola, FedEx, General Electric, General Motors, Google, and Walmart. Letters from leaders that described special circumstances were also singled out: the Bill and Melinda Gates Foundation, Abbott Laboratories, Amazon, Avon, Exelon, Hewlett-Packard, News Corp., and Zipcar.
"An enlightened CEO knows the importance of keeping shareholders informed of the state of the company, whether the business is ascending to new heights or in the thick of a crisis," said NACD President and CEO Ken Daly. "Transparent and detailed communications build trust between investors and management."
To learn more about NACD Directorship's exemplary annual letters and to read excerpts from the letters, visit www.NACDonline.org/Power-of-the-Pen.
About NACD
The National Association of Corporate Directors (NACD) is the only membership organization focused exclusively on advancing exemplary board leadership. Based on 35 years of experience, NACD identifies, interprets and provides insights and information that corporate board members rely upon to make sound strategic decisions, confidently confront complex business challenges and enhance shareowner value. With more than 12,000 corporate director members, NACD provides world-class director education, director training and proprietary research about leading boardroom and corporate governance practices to promote director professionalism and bolster investor confidence. Furthermore, to create more effective and efficient corporate boards, NACD provides independent board evaluations and custom-tailored in-boardroom education and training programs, as well as director-led conferences, forums and peer-exchange learning opportunities to share ideas about current and emerging issues. Fostering collaboration among directors and governance stakeholders, NACD is shaping the future of board leadership. To learn more about NACD, visit www.NACDonline.org. To join, please contact Kelly Dodd at kkdodd@nacdonline.org or 202-380-1891.