Board Composition in GCC vs International Peers
- Impact Boards EM
- Apr 10, 2024
- 2 min read
In collaboration with Birge
April 2024 | Impact Boards EM Research
Corporate governance is dynamic. Boards and the businesses they oversee face unprecedented challenges and opportunities, as well as new demands from their stakeholders. The challenging environment for boards today is characterised by a combination of complex issues, regulatory scrutiny, technological advancements, de-globalization, social and environmental responsibility, shareholder activism, cybersecurity threats, and talent management concerns. Effective governance requires boards to adapt to these challenges and proactively address them to ensure the long-term success of their organisations.
At the same corporate governance in the GCC region is going through a significant transformation:
The awareness about the benefits of more diverse boards is increasing. The boards have become more diverse, but a lot has to be done to align with international peers.
The governance process is improving with the appointment of professional board secretaries.
Some companies have started embedding ESG principles and sustainability approaches in their organisations by adjusting corporate culture, introducing ESG reporting, and improving corporate governance standards by adopting international standards and expertise.
Although the corporate governance of Gulf Cooperation Council-based companies has improved over the past decade, it still needs to develop further to align with best international practices. Further improvements are needed in board independence, corporate governance processes, cognitive diversity, a fair board evaluation, succession planning and financial transparency of non-financial reporting.
Gennady Vanin, Managing Partner at Birge, a consulting firm specialising on organisational transformation, rewards, and people management, analyses the trends, challenges, and opportunities in modern corporate governance worldwide and in the GCC region. The presentation is available to view here.
Our sincere gratitude to Birge for partnering with us for this research. For further information on our research resources or to collaborate on research please contact us on info@iboardsem.com.
Impact Boards EM | Birge