Merger to expand The Corporate Library's reach
Richard Bennett, president and CEO of The Corporate Library in Portland, says the merger with GovernanceMetrics International in New York City provides "a platform for growth" and a greater global reach.
The Corporate Library, a corporate governance research and risk rating firm, will add more than 2,400 new public companies to its database, enhancing the information available to investment and insurance professionals.
"I think the sky's the limit," Bennett told Mainebiz on Monday afternoon. "One of the things that held us back is we don't have global coverage."
The company, which was formed in 1999, rates more than 3,000 companies in the United States and Canada, and GMI rates more than 4,200 companies worldwide. The two firms will now be able to rate more than 5,400 companies, including the largest North American public companies and stock market indices in Asia, Europe and emerging markets, according to the press release.
The newly merged firm will employ about 90 people -- half in Portland and half in New York City -- and its overall revenue will increase more than 50%, Bennett says. He would not speculate on whether the merger will create any new jobs in Portland. The two companies will retain their current names for the time being because both enjoy strong brand recognition, Bennett says. Bennett will remain president and CEO of the merged entity.
The two companies will continue to develop and sell corporate governance risk ratings and analysis services used by investors, money managers, law firms and academic institutions. To compile its ratings and research, the firm pores over publicly available documents like SEC filings, annual reports and tax filings and allows clients to read company and committee charters, CEO employment contracts, executive compensation information and shareholder proposals, among other data.
Demand for greater corporate governance and the public's interest in how companies perform ESG -- or environmental, social and governmental practices --will feed the company's future growth, according to Bennett. He says those three elements are often not reflected in a corporation's balance sheets but are frequently sought. The company could see more business in the United States as a result of the new financial reform law -- the Dodd-Frank Wall Street Reform and Consumer Protection Act -- signed by President Obama this month, since people may seek out the additional information companies will be required to report.
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