“Corporate governance involves a set of relationships between a company's management, its board of directors, its shareholders, and other stakeholders. Corporate governance defines the framework through which the company's objectives are set, the means of attaining those objectives, and the means of monitoring performance are determined.OECD Principles of Corporate Governance, 2004).
A good governance This does not simply mean following the regulatory provisions laid down by different legislation, but rather understanding and implementing all those voluntary activities and procedures that are necessary “for the achievement of objectives in line with the interests of the company and its shareholders”, taking into account the specifics of the individual company, the relevant market, and the general context.
The CG Rating Report At Frontis Governance, over 100 indicators, defined exclusively for the benchmark market, are analysed. This is done with the understanding that best practices cannot ignore regulatory and cultural specificities. Each indicator is therefore evaluated in comparison with similar realities and with the most advanced ones. guidelines international standards applied to the specific market.
The four main areas of corporate governance are therefore analysed with the highest possible level of detail:
- Capital structure and shareholder rights
- Management bodies
- Remuneration
- Internal control system
Assigning a score to each individual indicator (defined by the level of adherence to market best practices and weighted by its associated risk level) allows for immediate comparison with similar entities, while maintaining the high quality of the analysis.
Download the sample del CG Rating Report to get an idea of the content, methodologies, and all the indicators used in the analysis.
I CG Rating Report are also available on the platform SRI-CONNECT, the first network for responsible investment professionals.