Google's corporate governance slammed Reuters Updated: 9:39 a.m. ET Aug. 23, 2004 NEW YORK - Google Inc. ranks lower in corporate governance than any company in the Standard & Poor’s 500 stock index, according to influential proxy adviser Institutional Shareholder Services, the Financial Times said on Monday. ISS, which advises shareholders on how to vote, found 21 weaknesses in the governance practices of Mountain View, California-based Google, which is expected These flaws, it said, include a dual-class capital structure that gives effective control to insiders, too few outside directors, a lack of stock ownership guidelines for executives and independent directors, a compensation plan that lets the company reprice stock options if the stock price falls, and loans to company insiders. The proxy adviser assigned Google, the world’s leading Web search engine, a corporate governance quotient of 0.2 out of a possible 100, the newspaper said.
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