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The Top Shareholder-Friendly Companies of 2007 - Expanded Rankings

The Top Shareholder-Friendly Companies of 2007
Listed here by sector and industry are the companies that scored the highest when we asked portfolio managers and sell-side equity analysts to choose the most shareholder-friendly companies in their domains.
BASIC MATERIALS
Chemicals/Commodity
1Monsanto Co.
2Dow Chemical Co.
3E.I. du Pont de Nemours and Co.
4Rohm & Haas Co.
5PPG Industries
Chemicals/Specialty
1Praxair
2Air Products and Chemicals
3Ecolab
4Chemtura Corp.
Metals & Mining
1Nucor Corp.
2Freeport-McMoRan Copper & Gold
3Allegheny Technologies
4Phelps Dodge Corp.
Paper & Forest Products
1International Paper Co.
2Weyerhaeuser Co.
3Packaging Corp. of America
4Kimberly-Clark Corp.
5Temple-Inland
CAPITAL GOODS/INDUSTRIALS
Aerospace & Defense Electronics
1United Technologies Corp.
2Lockheed Martin Corp.
3Boeing Co.
4General Dynamics Corp.
5Rockwell Collins
Airfreight & Surface Transportation
1United Parcel Service
2FedEx Corp.
3Burlington Northern Santa Fe Corp.
4Norfolk Southern Corp.
5Landstar System
Business & Professional Services
1Manpower
2Robert Half International
Electrical Equipment & Multi-Industry
1General Electric Co.
2Danaher Corp.
3Continental Materials Corp.
4Emerson Electric Co.
53M Co.
Environmental Services
1Republic Services
2Waste Management
3Stericycle
Machinery
1Illinois Tool Works
2Deere & Co.
3Caterpillar
4Eaton Corp.
5Ingersoll-Rand Co. 1
Packaging
1Ball Corp.
2Crown Holdings
3Pactiv Corp.
4Sonoco Products Co.
CONSUMER
Airlines
1Southwest Airlines Co.
2AMR Corp.
3U.S. Airways Group
4AirTran Holdings
Apparel, Footwear & Textiles
1Coach
2Liz Claiborne
3Polo Ralph Lauren Corp.
4V.F. Corp.
5Carter's
Autos & Auto Parts
1Johnson Controls
2BorgWarner
3Gentex Corp.
4Advance Auto Parts
5American Axle & Manufacturing Holdings
Beverages
1PepsiCo
2Coca-Cola Co.
3Pepsi Bottling Group
4Anheuser-Busch Cos.
5Coca-Cola Enterprises
Cosmetics, Household & Personal Care Products
1Procter & Gamble Co.
2Colgate-Palmolive Co.
3Clorox Co.
4Alberto-Culver Co. 2
5Masco Corp.
Food
1Hershey Co.
2Kellogg Co.
3Campbell Soup Co.
4Dean Foods Co.
5General Mills
Gaming & Lodging
1Harrah’s Entertainment 3
2Starwood Hotels & Resorts Worldwide
3Station Casinos 4
4Marriott International
5International Game Technology
Homebuilders & Building Products
1D.R. Horton
2Toll Brothers
3Ryland Group
4Pulte Homes
5KB Home
Leisure
1Carnival Corp.
2Harley-Davidson
3Royal Caribbean Cruises
4Life Time Fitness
Restaurants
1Yum! Brands
2McDonald’s Corp.
3Applebee’s International
4P.F. Chang’s China Bistro
5Starbucks Corp.
Retailing/Broadlines & Department Stores
1J.C. Penney Co.
2Federated Department Stores
3Target Corp.
4Kohl's Corp.
5Nordstrom
Retailing/Food & Drug Chains
1CVS Corp. 5
2Walgreen Co.
3Whole Foods Market
4Kroger Co.
Retailing/Hardlines
1Staples
2Lowe’s Cos.
3Best Buy Co.
4Home Depot
5Williams-Sonoma
Retailing/Specialty Stores
1Chico’s FAS
2Limited Brands
3Urban Outfitters
4American Eagle Outfitters
5Tiffany & Co.
Tobacco
1Altria Group
2Reynolds American
ENERGY
Electric Utilities
1TXU Corp.
2Exelon Corp.
3Duke Energy Corp.
4Allegheny Energy
5Entergy Corp.
Integrated Oil
1Exxon Mobil Corp.
2Occidental Petroleum Corp.
3ConocoPhillips
4Marathon Oil Corp.
5Hess Corp.
Natural Gas
1Questar Corp.
2Kinder Morgan 6
3Williams Cos.
4Equitable Resources
Oil & Gas Exploration & Production
1EOG Resources
2 7Apache Corp.
2 7XTO Energy
4Newfield Exploration Co.
5Chesapeake Energy Corp.
Oil Services & Equipment
1Schlumberger
2Nabors Industries1
3Halliburton Co.
4Noble Corp.
5Baker Hughes
FINANCIAL INSTITUTIONS
Banks/Large-Cap
1Wachovia Corp. 8
2Wells Fargo & Co.
3Bank of America Corp.
4JPMorgan Chase & Co.
5U.S. Bancorp
Banks/Midcap
1Zions Bancorp.
2Commerce Bancorp
3M&T Bank Corp.
4North Fork Bancorp. 9
5Compass Bancshares
Brokers & Asset Managers
1Lehman Brothers Holdings
2Goldman Sachs Group
3Merrill Lynch & Co.
4Franklin Resources
5BlackRock
Insurance/Life
1Aflac
2Hartford Financial Services Group
3Prudential Financial
4MetLife
5Genworth Financial
Insurance/Nonlife
1Allstate Corp.
2Progressive Corp.
3Ace 1
4Chubb Corp.
5Arch Capital Group 1
Mortgage Finance
1Countrywide Financial Corp.
2Golden West Financial Corp. 8
3IndyMac Bancorp
4Accredited Home Lenders Holding Co.
REITs
1Host Hotels & Resorts
2AvalonBay Communities
3Simon Property Group
4AMB Property Corp.
5ProLogis
Specialty Finance
1Capital One Financial Corp. 9
2American Express Co.
3CIT Group
4Moody's Corp.
5SLM Corp. (Sallie Mae)
HEALTH CARE
Biotechnology
1Gilead Sciences
2Genentech
3Amgen
4Genzyme Corp.
5Celgene Corp.
Health Care Facilities
1Community Health Systems
2HCA 10
3Triad Hospitals
4Universal Health Services
5Health Management Associates
Health Care Technology & Distribution
1Medco Health Solutions
2McKesson Corp.
3Caremark Rx 5
4Cardinal Health
5AmerisourceBergen Corp.
Managed Care
1WellPoint
2UnitedHealth Group
3Humana
4Aetna
5Coventry Health Care
Medical Supplies & Devices
1Johnson & Johnson
2Medtronic
3Zimmer Holdings
4Baxter International
5St. Jude Medical
Pharmaceuticals/Major
1Eli Lilly and Co.
2Wyeth
3Merck & Co.
4Schering-Plough Corp.
5Bristol-Myers Squibb Co.
Pharmaceuticals/Specialty
1Barr Pharmaceuticals
2Allergan
3Forest Laboratories
4Sepracor
MEDIA
Cable & Satellite
1Comcast Corp.
2DirecTV Group
3EchoStar Communications Corp.
Entertainment
1Walt Disney Co.
2Time Warner
3CBS Corp.
4News Corp.
5Viacom
Publishing & Advertising Agencies
1 7Gannett Co.
1 7E.W. Scripps Co.
3Omnicom Group
4McGraw-Hill Cos.
5Digitas 11
Radio & TV Broadcasting
1Clear Channel Communications 12
2Univision Communications
3Entercom Communications Corp.
TECHNOLOGY
Computer Services & IT Consulting
1Accenture1
2Paychex
3Cognizant Technology Solutions Corp.
4Electronic Data Systems Corp.
5First Data Corp.
Electronics Manufacturing Services
1Jabil Circuit
Imaging Technology
1Adobe Systems
Internet
1Yahoo!
2EBay
3AQuantive
4ValueClick
5Google
IT Hardware
1Hewlett-Packard Co.
2Apple Computer
3IBM Corp.
4EMC Corp.
5Dell
Semiconductor Capital Equipment
1KLA-Tencor Corp.
2Lam Research Corp.
3Applied Materials
4Varian Semiconductor Equipment Associates
Semiconductors
1Texas Instruments
2Microchip Technology
3Intel Corp.
4Freescale Semiconductor 13
5Marvell Technology Group 1
Software
1Microsoft Corp.
2Oracle Corp.
3 7Autodesk
3 7Intuit
5Citrix Systems
TELECOMMUNICATIONS
Data Networking & Wireline Equipment
1Cisco Systems
2Tellabs
Telecom Equipment/Wireless
1Qualcomm
2Motorola
3Crown Castle International Corp.
Telecom Services/Wireless
1Alltel Corp.
2Sprint Nextel Corp.
Telecom Services/Wireline
1AT&T 14
2Verizon Communications
3BellSouth Corp. 14
4Qwest Communications International
5Alaska Communications Systems Group
1 Based in Bermuda.
2 Effective November 16, 2006, upon company's reorganization, company changed name to Alberto-Culver LLC.
3 Accepted a private equity buyout bid in December 2006.
4 Management-led buyout bid launched December 2, 2006.
5 On November 1, 2006, CVS Corp. and Caremark Rx agreed to merge; the deal was expected to be completed in six to 12 months.
6 Agreed to management-led buyout November 15, 2006; deal expected to be completed early this year.
7 Tie.
8 Wachovia Corp. and Golden West Financial Corp. merged effective October 1, 2006.
9 Capital One Financial Corp. acquired North Fork Bancorp. effective December 1, 2006.
10 Taken private in management-led buyout completed November 17, 2006.
11 Acquired by France's Publicis Groupe effective January 31, 2007.
12 Agreed on November 16, 2006, to be taken private.
13 Taken private effective December 4, 2006.
14 AT&T acquired BellSouth Corp. effective December 29, 2006.

Picking the Winners

More than 760 analysts and portfolio managers at some 400 money management firms responsible for investing a combined $6.3 trillion in U.S. stocks participated in selecting Institutional Investor’s 2007 list of America’s Most Shareholder-Friendly Companies. These asset management professionals were asked to name the companies they consider the most shareholder-friendly in the industry sector (or sectors) for which they are responsible. In making their choices, voters were instructed to consider the effectiveness of companies’ governance and investor relations as part of their overall efforts to maximize shareholder value. Respondents gave their first, second, third and fourth choices, which we weighted to produce a score for each company. We name the most shareholder-friendly companies in each of the 62 industry sectors surveyed for the 2006 All-America Research Team.


Our America’s Most Shareholder-Friendly Companies ranking was compiled by Associate Editor Michele Bickford under the guidance of Assistant Managing Editors Sathya Rajavelu and Tom Johnson and Senior Editor Jane B. Kenney.