Existing indices employ one of two models: either the company pays, or the stock exchange pays. In China, Mexico and South Africa the stock exchange pays for the evaluation. The Korean Index is employing a hybrid. The Korean Corporate Governance Services, conducting the evaluations, is a not-for-proﬁt institution deriving a signiﬁcant portion of its funding from the Korean Stock Exchange. The listing segments in Brazil and Italy charge an additional fee for companies. Another source of income is the licensing of ETFs replicating the CG index. To date, such ETFs exist to date only in Brazil and China.
The CGRS was developed with a grant from the Siemens Integrity Initiative. Moving forward, the ratings will be funded via two sources. First by an Integrity Fund, endowed by individual and company contributions. Secondly, by optional convenience fees charged to companies for enhanced access to the Fiduciary Awareness Course Training (such as an oﬄine or ﬂash drive version) and fees charged for administering the Fiduciary Awareness Certiﬁcation Tests at sites other than the designated test centers at the NSE.