About RGI
What is the Resources Governance Index?
The Resources Governance Index, RGI for short, is a standardised measure of corporate governance, based on core
governance principles and using publicly available information. The Index is the outcome of a specific methodology
to weight, score, compare and rank numerous corporate governance variables (63). The RGI covers all companies listed
on the FTSE 100 and the Euro Stoxx 50 and other major indices are currently being developed. The methodology has been
developed by Resources Global Professionals and
The University of Edinburgh Business School.
A main challenge with the Euro Stoxx Index was to overcome the relative lack of transparency in European reports and
accounts. Compared to the FTSE, the other European information is far from standardised reporting conventions. Senior
pay and environmental data were particularly difficult to decipher. Our strongest companies still seem to be unsure
about external evaluation and assurance. An extra set of eyes is rarely a hindrance, while current reporting is often
bland. This Index is one way of encouraging comparison and identifying trends in this critical area – and it may also
offer a stimulus for raising standards and increasing international convergence.
The RGI is constructed to reflect the three primary dimensions/categories of corporate governance:
To allow for an evaluation of each of the company’s performance within these three primary categories, a scoring system is used.
Comparison Company scores are based on current practice for that sector or company size category Each element is weighted
according to its significance - applying these weightings provides a score (A – E) for each of the 3 categories. These are
combined to produce the overall RGI score and final ranking.
*Additional Plus Marks (5% extra weighting)
The Index is based on public information and gives additional ‘bonus’ scores to companies that are committed to greater than
average transparency and open themselves to external evaluation.
Scores are given for external board evaluation – the RGI sees significant benefits from independent third party input and evaluation.
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