Singapore Corporate Governance Award
Investors feel safe when companies have high corporate governance and disclosure standards. It also established that well governed companies enjoy higher valuations.
Therefore, SIAS, together with NUS School of Business, Centre of Governance, Institutions & Organisations (CGIO) and Thomson Reuters have come together to recognize companies that have good corporate governance practices and shareholder interests by awarding them the prestigious and one and only "Singapore Corporate Governance Award" (SCGA). The SCGA comprises of:
- Big Cap (market capitalization above $500million)
- Mid and Small Cap (market capitalization $500million and below)
- Most Improved
Scoring and Methodology
Companies are shortlisted as follows:
- Big Cap - Stage 1
Companies are evaluated and shortlisted using the scorecard developed for SIAS by CGIO of NUS Business School which includes an emphasis on shareholders’ rights and updated coverage of stakeholder engagement from the G20/OECD Principles of Corporate Governance.
Click here to view Selection Criteria.
- Mid and Small Cap - Stage 1
Shortlisted companies are filtered through the Governance Evaluation for Mid and Small (GEMs) scorecard which is jointly developed by SIAS, CSIS and Handshakes. GEMs evaluates criteria those particularly important to SMEs and focuses more on measures and indicators that reflect actual behaviour and actions, rather than just disclosures such as stability of ownership and succession plan and regulatory risk on the protection of minority shareholders.
Click here to view GEMS scorecard.
- Stage 2 - Big Cap, Mid & Small Cap
SIAS has partnered with Thomson Reuters, using their Stock Report Plus, which scores are comprised of analyst ratings of earnings, fundamentals, relative valuations, risks, price momentum and insider trading, as a screener to the shortlisted companies of the Big, Mid & Small Cap.
- Most Improved
As mid and small cap companies currently make up over 80% of SGX listed companies, this year SIAS focuses on most improved mid and small cap listed companies for this award. Therefore the shortlisted companies are derived from the GEMs scorecard and companies are shortlisted based improvement in performance from Year 2015 - Year 2016.
The Diversity Award recognises excellence in promoting diversity of boards of directors amongst SGX listed companies. The top 20% of companies from CGIO’s corporate governance scorecard with the highest standards in corporate governance practices and disclosures are further analysed based on gender diversity, board independence, directors’ breadth of experience and skill sets, and board diversity policy.
- Stage 3
In addition, realising the importance and the value of the input from investors, SIAS has also gathered feedback from retail investors, funds and high net worth investors to be taken into consideration.
- Stage 4
As the highest score Company may not necessarily be the winner, the SCGA Selection Committee Members meet to decide the winners based on the quantitative and qualitative inputs.