RT Journal Article
SR Electronic
T1 The Corporate Library's Governance Rating Approach
JF Special Issues
FD Institutional Investor Journals
SP 108
OP 110
VO 2003
IS 2
A1 Nell Minow
YR 2003
UL https://pm-research.com/content/2003/2/108.abstract
AB There is no disclosure requirement that reveals the courage and integrity required for effective oversight by directors. That can come only from a review of the decisions they make. The Corporate Library has developed a system for rating boards, with grades from A to F, based on dynamic indicators and assessments of the board' effectiveness in areas where the CEO's interests may conflict with the interests of the shareholders. Factors considered in the rating analysis include CEO pay, the company's financial reporting (for the purpose of evaluating the audit committee), the company's overall strategy, CEO succession planning, director stock ownership, what the board says it is doing in its governance policies, how the board responds to a crisis, and other indicators of the board's leadership and ability to add value.