Companies and institutional investors take note: RiskMetrics Group is launching the successor to its Corporate Governance Quotient on proxy research reports, dubbed Governance Risk Indicators (GRId).
Instead of scoring companies on governance relative to their industry and index as with CGQs, the new methodology will give an absolute score based on an assessment of four dimensions of corporate governance: board structure; compensation/remuneration; shareholder rights; and audit issues. The change means companies are assessed entirely on their own governance practices.
