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Products October 8, 2002
ISS to Introduce Corporate Governance Index
August 22, 2001 (PLANSPONSOR.com) - Institutional
Shareholder Services, which advises investors on proxy
issues, is developing a rating system that could provide
institutional clients with an easy measure of a company's
record on corporate governance.
Reported by Camilla Klein
The measure will take the form of a corporate governance quotient (CGQ), with scores falling between zero and one hundred. The index would reflect more than 50 governance practices, with 40% of the grade devoted to board issues, according to Dow Jones.
Coverage is expected to begin with the Russell 3000 and later expand to the entire universe of nearly 10,000 US public companies that the proxy advisor follows.
The scores will be included in the firm’s corporate analyses and are expected to be used by institutional investors as investment screening devices or as a tool in deciding which way to vote in close merger contests.