How we construct the index
We group the corporate governance measures under four higher level categories: Ownership structure, board of directors, independence and remuneration. The scoring for each category reflects the weighting put on each higher level category. The greater the max score in each category the greater the weighting and therefore the more importance we put on that category.
The final score is the summation of each category. The max scores for each category and the total max score is as follows:
- Ownership structure: 3
- Board of directors: 8
- Independence: 9
- Remuneration: 6
Total max score for the New Zealand Corporate Governance Index is 26.
We score each company in the NZX 50 (less excluded companies) each year after all annual reports have been audited and released to the public.