Northeast Utilities Corporate Governance

Corporate Governance

Elizabeth Kennan, Chair of the Corporate Governance Committee and Lead Trustee of the Board of Northeast Utilities, speaks about the importance of good corporate governance to NU:

Good Corporate Governance is not just a good idea — it is an absolute requirement. Our investing public deserves no less than this. I am pleased that at Northeast Utilities we are not latecomers to this idea. In 1996, NU first decided to adopt a Lead Trustee form of Corporate Governance believing that it was appropriate for one of the non-management Trustees to play a greater role in helping provide a heightened degree of oversight.

Likewise, for a number of years the NU Trustees have routinely met in executive session without members of management present, allowing them to have a robust discussion without interference from management.

Historically, independence has been an important part of the Board's composition. For decades the Board has been made up of a majority of independent members.

We have also had Compensation, Corporate Governance and Audit Committees chaired by non-management members.

Finally, the Board of Trustees at Northeast Utilities has engaged in a process of internal evaluation of itself and its practices for a number of years.

The passage of the Sarbanes-Oxley Act and the resulting rules from the SEC and the New York Stock Exchange have helped us to take what we believe to be a solid history of strong corporate governance to the next level as we continue to strive for excellence. We have not arrived at perfection, but we do believe that our intent is evident, our purpose clear and our effort is appropriate as we strive to continue to hold investors' trust.

Last updated as of 3/29/04

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