Submitted by: Lyondell Chemical Corporation
Categories: Corporate Governance
Posted: May 02, 2003 – 12:00 AM EST
May 02 /CSRwire/ -
Lyondell's superlative scores are supported by such factors as its full board of directors is elected annually, and the audit, compensation and corporate governance committees are comprised solely of independent, outside directors.
"This is a tremendous honor," said Dr. William T. Butler, Chairman of Lyondell's Board of Directors and Chancellor, Baylor College of Medicine, in announcing the company's ratings. "Independence of our board of directors and its committees and the integrity of our governance processes were commitments at Lyondell long before events in recent years highlighted their importance. We are gratified that our adherence to sound corporate governance standards has earned this significant recognition."
"Preserving the independence of our board and key committees is the guiding principle by which we uninterruptedly ensure that the interests of our shareholders and other key constituencies are safeguarded," said Dan F. Smith, Lyondell President and CEO. "A sound governance structure promotes fairness, clear disclosure and accountability -- and it's good for business."
ISS rated Lyondell according to its Corporate Governance Quotient (CGQ), determining that it earned a CGQ of 100 against the S&P 400 and 99.6 against the Materials group. ISS' Corporate Governance Quotient was devised as a means of gauging the caliber of corporate boards and the effect corporate governance provisions might have on performance. ISS analyzes 61 variables in eight core categories to formulate the CGQ, which incorporates: board of directors, audit, charter and bylaw provisions, laws of the state of incorporation, executive and director compensation, qualitative factors, ownership and director education.
Lyondell posts information pertaining to its corporate governance practices on its web site at http://www.lyondell.com/html/investor/corporate_governance
ISS is the world's leading provider of proxy voting and corporate governance services. ISS serves more than 950 institutional and corporate clients throughout North America and Europe with its core business -- analyzing proxies and issuing informed research and objective vote recommendations for more than 10,000 US and 12,000 non-US shareholders meetings each year.
Lyondell Chemical Company, (http://www.lyondell.com ), headquartered in Houston, Texas, is a leading producer of: propylene oxide (PO); PO derivatives, including propylene glycol (PG), butanediol (BDO) and propylene glycol ether (PGE); toluene diisocyanate (TDI); and styrene monomer and MTBE as co-products of PO production. Through its 70.5% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, principally processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.
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