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PIC Corporate Governance Rating Matrix

 

The Centre was appointed by the South African Public Investment Corporation (PIC) in 2008 to develop a Corporate Governance Rating Matrix to be applied to listed South African corporations. The PIC is a government-owned asset manager and its biggest client is the Government Employees Pension Fund. The PIC manages assets of over R1.17 trillion making it one of the largest asset managers on the African continent. During the first two years the research included the top 40 companies listed on the Johannesburg Stock Exchange (JSE). From 2011 onwards the research included the top 100 companies listed on the JSE.

The team that developed the matrix comprised Prof Bob Garratt (chairman of the Centre), Thina Siwendu (senior research fellow of the Centre), Daniel Malan (director of the Centre), Deon Botha (Corporate Governance Specialist at the PIC and senior research fellow of the Centre), as well as external experts that included Prof Philip Sutherland, Tom Wixley and Kwanele Gumbi.

The matrix incorporates existing PIC, South African and international corporate governance standards and best practice. Compliance-related information received from the PIC was balanced with "softer" measures on adherence to the fundamental corporate governance values of transparency, honesty and accountability. The emphasis was on the development of core indicators that focus on material issues and performance, rather than extensive tick-box questions on technical issues.

The matrix includes 16 categories: board, individual directors, executive management, remuneration, shareholder treatment, auditing and accounting, disclosure and reporting, corporate behaviour, corporate culture, sustainability report, UN Global Compact, human rights, transformation, health and safety, corporate responsibility, environmental.

The five analyst that have been appointed to undertake the research are:

  • Nomonde Nyathela
  • Zenley Paulsen
  • Onesimo Mazarura
  • Chantelle Engelbrecht
  • Roan Snyman

Download PDF New Matrix Launched to Measure Corporate Governance Levels in SA

For more information, contact deon.botha@usb.ac.za