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Home > Reports > Annual Report 2021 > Governance > Remuneration

REMUNERATION

The Board, based on the recommendation of the Remuneration and Nomination Committee, shall determine the remuneration of Board members, committee members (both who are and who are not members of the Board), and Senior Executives. In addition, the remuneration is determined according to the conditions set by the Board and in the Remuneration Policy of the Board Members, Committees Members and Executive Management approved by the General Assembly of SABIC's shareholders. A member shall be entitled to the remuneration granted to him according to the foregoing conditions and principles.

REMUNERATION POLICY

OBJECTIVE

The objective of this Policy is to organize remuneration in a manner that attracts board or committee members having appropriate scientific, technical, and managerial expertise; and enable them to carry out their roles with the required professionalism and efficiency, taking into consideration SABIC's business environment and required skills and capabilities.

The Company aims to create an attractive environment to attract and retain talents with required skills and expertise to ensure sustained growth and achievement of its vision. This is maintained through the Company’s remuneration structure for Executive Management that is consistent with the relevant regulations, legislation, and best practices.

REMUNERATION PRINCIPLES AND RULES

Considering the provisions governing the remuneration of members of the Board of Directors and board committees – as stipulated in Companies Law, the Corporate Governance Regulations, the “Regulatory Rules and Procedures issued pursuant to the Companies Law relating to Listed Joint Stock Companies,” and the Company's By-Laws – remuneration of the members of the Board of Directors, its committees and senior executives, shall be in accordance with the following principles and rules:

A. Board and Committee members

- The Board, based on the recommendation of the Remuneration and Nomination Committee, determines the remuneration of Board members and committee members based on the following principles:

  • The remuneration structure shall be consistent with the company’s strategic objectives, act as an incentive for the members to achieve these objectives, and enhance the company’s ability to develop and sustain its business.
  • The remuneration shall be based on the nature of the company’s business and its size as well as the skills and experience required.
  • The remunerations should be a means to attract Board members with the right expertise and qualifications to enhance the company’s ability to achieve its objectives.

–The Board of Directors, based on the recommendation of the Remuneration and Nomination Committee, determines the remuneration of the Board Chairman and members in the manner it deems appropriate, provided the total remuneration, financial or in-kind benefits and rewards that a member of the Board of Directors receive does not exceed an amount of one million eight hundred thousand (1,800,000) Saudi riyals annually. If the amount exceeds that limit, it must be presented to the General Assembly to decide as it deems appropriate.

– A member of a Board committee (including the Audit Committee), who is not a member of the Board, is entitled to a remuneration of two hundred thousand (200,000) Saudi riyals annually

– The Company is entitled to claim compensation for damage to its reputation, and recover any paid remuneration, compensation, or other costs it incurred, in the event that the member:

  • Commits an act of dishonesty or breach of trust, forgery, or violation of the laws and regulations of the Kingdom of Saudi Arabia or any other country.
  • Fails to carry out his/her responsibilities and duties resulting in damage to the interest of the company.
  • Membership is terminated by a decision of the General Assembly – for being absent from three consecutive meetings within one year without a legitimate excuse acceptable to the Board.

B. Executive Management

– Based on the recommendation of the Remuneration and Nomination Committee, the Board determines the Executive Management’s remuneration according to the following principles:

  • Should be commensurate with the company’s strategic objectives and be a motivating factor for Executive Management to achieve these objectives and enhance the company’s ability to grow and sustain its business

REMUNERATION PAID DURING 2021 (IN SAR)

The aggregate total remuneration paid by SABIC to the members of the Board (including their chairmanship and/or membership of Board committees) for the year ended December 31, 2021 is set out below:

  • Should be commensurate with the nature of the company’s business and size as well as with the required skills and experience.
  • Enables the Company to attract senior executives with skills and qualifications necessary to enable the Company to achieve its objectives.
  • Should not cause conflict of interest which may adversely impact the Company’s interest and ability to achieve its objectives.






Fixed remunerations




Variable remunerations




NameFixed amount (1)Attendance allowance for Board meetingsTotal attendance allowance for Committee meetingsIn-kind benefitsRemuneration of technical, administrative and consulting worksRemuneration of the Chairman of the Board, the Managing Director or the Secretary of the Board of Directors
TotalProfit ratePeriodic bonusesShort-term incentive plansLong-term incentive plansShares awarded (enter value)TotalEnd of service awardGrand totalExpenditure allowance
First: Independent Members
Dr. Khaled bin Hamza Nahas200,00020,00030,000000
250,0000000000250,0000
Mohammed Talal Al-Nahas200,00020,00025,000000
245,0000000000245,0000
Nader Ibrahim Al-Wehibi200,00020,00030,000000
250,0000000000250,0000
Total600,00060,00085,000000
745,0000000000745,0000
Second: Non-executive members
Khalid Hashim Al-Dabbagh200,00020,00015,000000
230,000
0000000230,000
0
Calum Grigor MacLean200,00020,00015,000000
235,0000000000235,0000
Abdullah Mohammed Al-Issa200,00020,00030,000000
250,0000000000250,0000
Eng. Ziad Thamer Al-Murshed200,000    20,00030,000000
250,000
0000000250,0000
Eng. Oliver Gerard Thorel200,00020,00015,000000
235,0000000000235,000
Total1,000,000100,000100,000000
1,200,00000000001,200,000
0
Third: Executive members
Yousef Abdullah Al-Benyan200,00020,00010,000000
230,0000000000230,0000
Total200,00020,00010,000000
230,0000000000230,0000

Important Note:
1. The fixed amount is the annual remuneration specified for membership of the Board of Directors for the year 2021.

Remuneration of committee members for the year ended December 31, 2021 is set out below:

AUDIT COMMITTEE MEMBERS

Name
  • Fixed remunerations (excluding session attendance allowance)
  • Meeting attendance allowance
  • Total
Fixed remunerations (excluding session attendance allowance) Meeting attendance allowance Total
Abdulaziz Habdan Alhabdan (Member from outside the Board of Directors) 200,000 30,000 230,000
Abdullah Mohammed Al-Issa 0 25,000 25,000
Nader Ibrahim Al-Wehibi 0 25,000 25,000
Khaled Dawood Al-Faddagh (Member from outside the Board of Directors) 200,000 30,000 230,000
Salah Mohammed Al-Hareky (Member from outside the Board of Directors)(2) 144,110 20,000 164,110
Total 544,110 130,000 674,110

REMUNERATIONS AND NOMINATIONS COMMITTEE MEMBERS

Name
  • Fixed remunerations (excluding session attendance allowance)
  • Meeting attendance allowance
  • Total
Fixed remunerations (excluding session attendance allowance) Meeting attendance allowance Total
Khaled bin Hamza Nahas 250,000 25,000 275,000
Mohammed Talal Al-Nahas 250,000 25,000 275,000
Ziad Thamer Al-Murshed 250,000 25,000 275,000
Total 750,000 75,000 825,000

INVESTMENT COMMITTEE MEMBERS

Name
  • Fixed remunerations (excluding session attendance allowance)
  • Meeting attendance allowance
  • Total
Fixed remunerations (excluding session attendance allowance) Meeting attendance allowance Total
Khalid Hisham Al-Dabbagh 250,000 10,000 260,000
Yousef Abdullah Al-Benyan 260,000 10,000 260,000
Abdullah Mohammed Al-Issa 250,000 5,000 255,000
Khaled bin Hamza Nahas 0 5,000 5,000
Ziad Thamer Al-Murshed 0 5,000 5,000
Total 750,000 35,000 785,000

RISK AND SUSTAINABILITY COMMITTEE MEMBERS

Name
  • Fixed remunerations (excluding session attendance allowance)
  • Meeting attendance allowance
  • Total
Fixed remunerations (excluding session attendance allowance) Meeting attendance allowance Total
Calum Grigor MacLean 250,000 15,000 265,000
Nader Ibrahim Al-Wehibi 250,000 5,000 255,000
Olivier Gerard Thorel 250,000 15,000 265,000
Total 750,000 35,000 785,000

Important Note:
2. Mr. Salah Al-Hareky joined the Audit Committee on April 13, 2021.

The aggregate total remunerations paid by SABIC to five executives who received the highest remuneration, including the CEO and CFO, for the year ended December 31, 2021 are as below:




Fixed remunerations



Variable remunerations




Senior ExecutivesSalariesAllowancesIn-kind BenefitsTotalPeriodic remunerationsProfitsShort-term incentive plans*Long-term incentive plans**Granted shares(insert the value)TotalEnd of service benefitsTotal remunerations for BoardTotal aggregate amount
Total (SAR)14,455,0204,907,492407,47219,769,984--6,451,3456,259,634
-12,710,979-220,000
32,700,963

Important Note:

* Remuneration for 2020

** Remuneration for 2020 cycle

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