Chapter 13 ÔÇô Assessment of Directors

Chapter 13 ÔÇô Assessment of Directors

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Chapter 13 – Assessment of Directors, Boards and Companies Corporate Governance Rating Systems for Companies - Reliable corporate governance rating from an independent and respected organization can reduce a company’s cost of capital Rating Agency Techniques etc. Standard and Poor’s (S&P) - Does not offer company advisory or training services - Methodology based on a synthesis of best practices and codes - Based on four sectors: Ownership structure and external influences Shareholder rights and relations Transparency, disclosure and audit Board structure and effectiveness FTSE Group in collaboration with Internal Shareholder Services (ISS) - Produced ww CG rating systems - Uses OECD principles as its benchmark - Called CGquotient - Five broad categories Equity structure Structure of the board Independence and integrity of the audit process Compensation schemes for executive and non-executive directors Executive and non-executive director ownership GovernanceMetrics International (GMI)
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Chapter 13 ÔÇô Assessment of Directors

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