Corporate governance rated
Brussels-based consultancy Déminor has released the results of its European corporate governance rating to institutional clients. The rating has been designed to provide a comparative research service to investors and includes 160 blue-chip European companies rated on corporate governance criteria.
Each company is analysed and rated against a European benchmark, developed and updated by Déminor since 1993, in collaboration with large institutional investors. The benchmark consists of an analysis matrix combining over 230 corporate governance indicators, classified into four main categories – rights and duties of shareholders, absence of takeover defences, disclosure and board structure. This first rating is based on the companies’ 1998 reports and will be updated annually.
Institutional investors ABP, DWS, PGGM, Hermes, Crédit Agricole Indosuez and SPP are already using the service, along with others subscribed on an undisclosed basis, says Déminor.
Shervin Setareh, Déminor’s consultant, says: “What we want is to get feedback from our subscribers to refine the whole rating, making it better for next year.”
The information is available to them on CD-ROM and may be available online in the future. “When we have many annual ratings, access by the net could be easier than using a different CD for each year.”