SearchCorporate Governance
At SABIC, we have an unwavering commitment to upholding the highest standards of governance. This is achieved through strategic planning, robust risk management practices, transparent operations, and a strong focus on social and environmental responsibility.
GOVERNANCE FRAMEWORK
Our approach to corporate governance extends beyond mere compliance with regulations. SABIC has methodically designed its own corporate governance framework, which establishes clear roles, responsibilities, decision-making processes, and mechanisms for accountability in line with the board-approved delegation policy. The robust corporate governance practices at SABIC comply with relevant laws and regulations issued by the regulatory authorities including the Capital Market Authority (CMA) and also adheres to internationally recognized best practices.
SUSTAINABILITY GOVERNANCE AND ORGANIZATION
SABIC’s board is ultimately responsible for promoting the long-term sustainable success of the company. Therefore, it approves SABIC’s purpose, long-term strategy, objectives, and values, developing and approving all necessary policies and KPIs to ensure, through gaining assurances, alignment with desired sustainability targets.
SABIC’s Executive Committee (ExCom) is chaired by the CEO and includes all Executive Vice Presidents of business units and corporate functions, including the Chief Sustainability Officer (CSO). The ExCom is responsible for setting the sustainability vision, priorities, and goals, and is ultimately accountable for the company performance measured against sustainability goals. The ExCom has the discretion of creating sub-committees to drive focus in specific areas, such as climate change, product stewardship, etc. Performance against business and functional goals is linked to the financial compensation for all executive and senior leaders.
BOARD STRUCTURE AND COMPOSITION
SABIC has a one-tier board consisting of nine directors, the majority of whom are non-executives, including independent directors. The SABIC board has the right size and skill mix for managing the company’s business affairs.
As of December 31, 2023, SABIC board comprises the following directors:
| Name |
|
Role | Classification | Capacity | External mandates** |
|---|---|---|---|---|---|
| Khalid Al-Dabbagh | Chairman | Non-executive | In his personal capacity | 1 | |
| Ziad Al-Murshed | Member | Non-executive | In his personal capacity | - | |
| Abdulrahman Al-Fageeh(1) | Member | Executive | In his personal capacity | 1 | |
| Mohammed Al-Nahas | Member | Non-executive | Representing GOSI* | 1 | |
| Dr. Mohammed Al-Qahtani | Member | Non-executive | In his personal capacity | 2 | |
| Yousef Al-Zamel | Member | Independent | In his personal capacity | - | |
| Nader Al-Wehibi | Member | Independent | In his personal capacity | 1 | |
| Calum MacLean | Member | Independent | In his personal capacity | - | |
| Dr. Faisal Al-Faqeer(2) | Member | Non-executive | In his personal capacity | - | |
| 9 Directors | 3 Independent (33.3%) 5 Non-executive (55.6%) 1 Executive (11.1%) |
Average external mandates 0.6 | |||
| Olivier Thorel(3) | Member | Non-executive | In his personal capacity | - |
(1) Joined the board and BIC on Mar 21, 2023
(2) Joined the board and BRSC on Sep 01, 2023
(3) Resigned from the board and BRSC on Aug 31, 2023
*GOSI = General Organization for Social Insurance
**Listed joint stock companies
Read more about our leadership: board members and executive management.
BOARD: KEY DELIBERATIONS AND PRIORITIES
In 2023, the board deliberations covered all the routine as well as the emerging matters reserved for the board as the ultimate responsible body for monitoring, guiding, and advising the company.
2023 KEY DELIBERATIONS and ACTIVITIES
- Reviewed and discussed SABIC products’ applications across the market sectors in light of global trends, challenges, and opportunities from a sustainability perspective.
- Reviewed executives’ total pay, benchmarked with the market.
- Reviewed operational safety and reliability indicators.
- Updated the board delegation policy and schedule.
- Approved updates to the Code of Ethics.
- Reviewed SABIC growth projects and strategy.
- Engaged with key global customers and conducted site visits.
2024 KEY PRIORITIES
- Review the company’s strategy for growth.
- Oversee talent, human capital management, and executive succession planning.
- Review company efforts in mitigating market risks, cybersecurity, and environment, health, safety, and security issues.
- Monitor management efforts in improving company performance of profitability.
Read more about board responsibilities, composition, and performance in 2023.
BOARD COMMITTEES
The SABIC board is supported by four committees, which are the Audit Committee, Remuneration & Nomination Committee, Risk and Sustainability Committee, and Investment Committee. These committees oversee the matters delegated to them by the board and provide guidance and recommendations to it. The board is ultimately responsible for the committees’ actions and for assessing their performance periodically.
Read more about committee responsibilities, composition, and performance in 2023.
Read more about other governance topics, including remuneration, related-party transactions and internal audit.
Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2023 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.