Saudi Arabian Boards Analysis 2018

In May, we published a report titled, Saudi Arabia 2018: Board and Board Committees Governance Report for Listed Companies” which analysed board and board committees’ compliance with Saudi Arabia’s corporate governance regulations. We analysed 21 companies listed in Tadawul (Saudi Stock Exchange), that had published their annual reports in English.

Some insights from this report, which analysed 21 companies, are:

  • Regulation: Board member cannot be member of Board of more than five listed joint stock companies
  • Practice: One company had Board members exceeding this limit

  • Regulation: The board must convene at least 4 times in a year
  • Practice: 2 companies were in non-compliance with this provision

  • Regulation: The Chairman must be an Independent Director
  • Practice: 6 companies didn’t have an Independent chairman

  • Regulation: The Remuneration & Nomination Committee should not include any Executive Directors
  • Practice: One company had its CEO as member of RNC

  • Regulation: Companies must form a Risk Management Committee
  • Practice: 7 companies didn’t disclose any information on RMC and 3 Companies had not yet formed the committee

The full report is available in our website at: Saudi Arabia Board Analysis 2018