The CG Evaluation (CGE) is a system which targets the certification/feedback of the following:
Recognizing the differences in functions and duties of the foregoing company officers and executives, a different evaluation/certification for each has been required, in order to get the most responsive feedback on Corporate Governance compliance.
For members of the Board of Directors, they are required to conduct a self-evaluation on the Board’s corporate governance-related policies and practices, as well as undertake a Corporate Governance assessment of the President/CEO.
This evaluation is conducted on an annual basis using basically the same forms. Beginning with the 2011 cycle, we made minor modifications: for the Board Self-Assessment, we added a new section where we solicited inputs on “Recommendations on How to Improve The Board’s Effectiveness and Role in EDC”. For the President/COO Evaluation, we introduced the President’s Self-Assessment where the President/COO evaluated his performance for the period, using the same standards and questionnaires in the Board’s President/COO Evaluation. For the 2012 cycle, we added further improvements to the form with the portion where the respondents cite their reasons for giving the highest or lowest ratings in the assessments.
For reference, below are the CG Evaluation forms we used:
THE 2012 CORPORATE GOVERNANCE PERFORMANCE EVALUATION OF THE BOARD AND THE PRESIDENT
In 2012, the Compliance Office assisted the Board in the conduct of its Annual Self-Assessment and President’s Evaluation, featuring a new evaluation tool whereby respondents were ask to cite their reasons for giving the highest and the lowest ratings. This feature would help the Board and Management know the rationale for the ratings and as such, they can provide inputs for the improvement of Board processes and activities.
For the Board’s Self-Assessment, highest rating was given to the board’s accountability & independence. A per item comparison of the 2012 and 2011 results show a marked consistency on items relating to accountability, independent-mindedness and stewardship. Further, on their recommendations for improvement, several suggestions reiterate the need to focus more on strategy and strategic processes. On the other hand, for the President’s Evaluation, the 2012 cycle resulted in the highest evaluation rating for the Company President, with the respondents citing that the President/COO’S clear vision, strategies & directions, leadership, management skills, financial expertise & capacity to cooperate & work closely with the board helped achieve the company’s strategic objectives.