Better Boards in GCC Focus of Gathering
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Author: Saudi Aramco News
Released 9 January 2008
RAS TANURA, January 09, 2008 -- Boards of directors are the bosses’ bosses. So it would follow that companies can’t be good without good boards of directors overseeing them.
Members of the Board of Directors Institute in the GCC gather in front of the Executive Leadership Center in Ras Tanura during the inaugural meeting of the group, aimed at improving the effectiveness of boards of directors in the region.
Saudi Aramco, a co-founder of the Board of Directors Institute (BDI) in the GCC, gathered regional board members recently for that group’s inaugural workshop at the Ras Tanura Executive Leadership Center.
Senior vice president of Finance Abdullatif A. Al-Othman hosted the four-day interactive workshop led by experts in board performance and effectiveness.
In an address to the region’s current board members, president and CEO Abdallah S. Jum‘ah said, “Here in the GCC region, enhancing board effectiveness goes beyond important to essential, largely because of emerging economic trends, the pace and scale of economic and social development, and the enormous investments we are seeing across the business spectrum.”
The BDI was established as a not-for-profit organization to enhance the capabilities and effectiveness of boards of directors throughout the GCC by sharing experiences and best practices, enhancing understanding of regional and emerging issues that impact boards, and providing access to global expertise. Al-Othman emphasized the importance of BDI’s role. “Good corporate governance makes good business sense,” he said. “It is a cornerstone for organizational success.”
Taking part in the meeting are Abdulla Al-Zamil, CEO of Zamil Industrial Investment Co., and Saudi Aramco’s Abdullatif A. Al-Othman.
International consultants from Allen and Overy, Heidrick and Struggles, McKinsey and Co., and PriceWaterhouse Coopers teamed with corporate partners Investcorp International, Saudi Arabia Basic Industries Corp., the Capital Market Authorities of Saudi Arabia and Oman, Central Bank of Bahrain, Emirates Bank Group, and Zain to develop the workshop content. In February, Investcorp will host the next in a continuing series of workshops.
“The key requirements of a strong and effective board of directors include the right level of independence from management and an appropriate mix of skills and experience,” said Abdullah H. Al-Abdul-Gader, commissioner of the Capital Market Authority of Saudi Arabia.
The initial workshop addressed those requirements through sessions on director selection, development and succession; director roles and responsibilities; board roles, structure, processes and protocols; and board dynamics, self-review and succession. Sessions included presentations, small-group case studies and cafe-style breakout sessions in an environment of candid discussion.
The workshop was unique because it brought a regional cultural perspective to the issues faced by board members, said Abdulla Al-Zamil, CEO of Zamil Industrial Investment Co. “But most importantly, the biggest gain was from the mix of delegates and lecturers representing a wide spectrum of businesses and professionals. Such initiatives will go a long way in ensuring proper corporate governance among organizations for the protection of shareholders and, most importantly, stakeholders at large.”
Jum‘ah emphasized that, in the region, “The need for more capable board management is an idea whose time has come.”
(Article by John Denker)