‎CMA urges listed firms to align remuneration policies with performance

The Capital Market Authority (CMA) called upon listed companies to review their remuneration policies for board members, board committees, and executive management, to include clear criteria aligned with the performance of both the board members and the company.

The policies should include clear criteria that are aligned with the performance of both board members and the company.

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According to Al Ekhbariya, citing a new circular issued by the CMA, the Authority stressed the need to disclose these criteria and verify their implementation.

It added that if a remuneration policy does not include the required criteria, companies must take the necessary steps to amend and align the policy with the relevant regulatory requirements.

The CMA also stressed the need for companies to comply with the provisions of the Capital Market Law and the Companies Law and their implementing regulations, as well as other relevant regulations under the Authority’s jurisdiction.

According to data available with Argaam, Article 58 of the Corporate Governance Regulations stipulates that remuneration policies should take into account performance-related criteria, which must be disclosed and their implementation verified.

Meanwhile, Article 59 requires the variable component of remuneration to be linked to long-term performance.

The Capital Market Authority (CMA) called upon listed companies to review their remuneration policies for board members, board committees, and executive management, to include clear criteria aligned with the performance of both the board members and the company.

The policies should include clear criteria that are aligned with the performance of both board members and the company.

According to Al Ekhbariya, citing a new circular issued by the CMA, the Authority stressed the need to disclose these criteria and verify their implementation.

It added that if a remuneration policy does not include the required criteria, companies must take the necessary steps to amend and align the policy with the relevant regulatory requirements.

The CMA also stressed the need for companies to comply with the provisions of the Capital Market Law and the Companies Law and their implementing regulations, as well as other relevant regulations under the Authority’s jurisdiction.

According to data available with Argaam, Article 58 of the Corporate Governance Regulations stipulates that remuneration policies should take into account performance-related criteria, which must be disclosed and their implementation verified.

Meanwhile, Article 59 requires the variable component of remuneration to be linked to long-term performance.