Sports apparel maker Nike has earned poor marks for its corporate governance practices, according to research conducted by RiskMetrics. According to the Portland Business Journal, Nike scored a 5.1 on a 1-100 scale, putting it below about 95 percent of the field. Much of Nike’s poor performance is based on its stock structure, which gives Class A shareholders director choices for 9 of its 12 board seats. 96.4 percent of Nike’s Class A shares are held by company chairman Phil Knight.
RiskMetrics: Nike Earns Poor Grades for Governance
Earning a 5.1 out of a possible 100 for its governance, apparel maker Nike is near the bottom of the pile according to RiskMetrics.
August 24, 2009