Saturday, April 30, 2005

ISS's Corporate Governance Quotient (CGQ®)

Corporate Governance Quotient (CGQ®), a corporate governance rating system provided by Institutional Shareholder Services (ISS) on over 7,500 companies worldwide, evaluates the strengths, deficiencies and risks of a company's corporate governance practices and board of directors.

CGQ uses a comprehensive set of objectives and consistently applied criteria for each of the companies rated. The database features corporate governance rankings on more than 7,500 companies worldwide, and includes underlying data points for up to 61 corporate governance variables, categorized under eight areas of focus: 1) board of directors, 2) audit, 3) charter and bylaw provisions, 4) anti-takeover provisions, 5) executive and director compensation, 6) progressive practices, 7) ownership, 8) director education. Some of the variables are reviewed together under the premise that corporate governance is enhanced when selected combinations of these variables are adopted. To facilitate analytical comparison, each company is scored individually, relative to its market index and its industry group.

See full Article.