| From 1991 through 1995, companies whose outside directors held a median amount of more than $750,000 of stock in 1993 had results that, on average, surpassed those whose directors owned less than $100,000. The same held true for 1991-1993. |
| 1991-95 Annual Performance | Companies Whose Directors Have | |
| Small Stakes | Big Stakes | |
| Total Return | 14.2% | 16.8% |
| Net Income Growth | 0.0 | 9.8 |
| Earnings Per Share Growth | 0.0 | 6.8 |
| Sales Growth | 5.5 | 11.1 |
| The 10 companies whose directors in 1993 had the highest median stock ownership among the 449 studied (an average of $12.2 million, led by Berkshire Hathaway, lower right) also significantly outpaced, on average, the 10 whose outside directors held the lowest median amount of stock, just $11,400, in 1993. Valassis Communications directors had the smallest median stake. |
| Valassis Communications, Hayes Wheel International, Armco, US Airways, Provident, Wynn's International, Atmos Energy, Varity, Central Maine Power, Gencorp |
| 1991-95 Annual Performance | |
| Total Return | 7.3% |
| Net Income Growth | 0.0 |
| Earnings Per Share Growth | 0.0 |
| Sales Growth | 0.1 |
| Berkshire Hathaway, Coca-Cola, Chriscraft Industries, Werner Enterprises, Campbell Soup, Wal-Mart, Waste Management, Sciclone Pharmaceutical, Hillenbrand Industries, Wall Data |
| 1991-95 Annual Performance | |
| Total Return | 14.0% |
| Net Income Growth | 14.4 |
| Earnings Per Share Growth | 11.3 |
| Sales Growth | 11.3 |
Source: Sanjai Bhagat, University of Colorado at Boulder
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