Читать книгу Corporate Governance - Quantity Versus Quality - Middle Eastern Perspective - Saleh Hussain - Страница 26

The selection methodology of directors and executive management is the key and deciding factor in their success in discharging their duties to the corporation they serve. These questions highlight the importance of the selection process:

•Does the company have a written policy on the way the selection of directors and executive management is made?

•Are skills, qualifications and experience of directors and executive management prerequisites to suit the requirement of the corporate for these talents?

•Who handles the selection - shareholders, board members or consultants?

•How the appraisal of performance of the directors and executive management is handled?

•Are compensation schemes adequate and within market guidelines in which the corporate operates?

•Are directors aware of the requirements of corporate governance in the company? Are there any training and development programs for the directors?

•What is the role of shareholders in all the above? Do they exercise any activism to protect their rights and the rights of other stakeholders?

The directors of the board and executive management play the most important and vital role in directing the company's business. Unless the company has in place comprehensive governance policies that are implemented and monitored with audit and control units that give the shareholders a level of assurance of the soundness of these policies, the company runs the risk of disappointment or even failure.