Columbus, Ind.-based Cummins Inc. last week announced that it has received the highest possible rating for its corporate governance practices from GovernanceMetrics International. Cummins was one of just 43, or 1 percent of the companies rated, that received GMI’s highest rating of 10.0.
GMI-rated companies based on six areas of analysis: board accountability, financial disclosure and internal controls; executive compensation; shareholder rights; ownership base; takeover provisions and corporate behavior; and responsibility. Companies are rated from 0 to 10.
“Cummins believes it has a responsibility to be open and transparent in all its actions,” said Marya Rose, vice president – general counsel. “We are extremely pleased to receive GMI’s highest rating, because it speaks to the effectiveness of our efforts in these important areas.”
GovernanceMetrics International monitors and rates corporate governance for approximately 4,200 businesses worldwide. Companies are measured using objective data, starting with a review of public information about each business that includes regulatory filing, websites and news articles. GMI assigns both global and national ratings to companies, allowing each corporation to compare itself to both businesses around the world and at home.
Cummins Inc. is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.