Corporate Governance
An integrated governance framework to implement the best global practices
Burgan Bank (“the Bank”) is committed to the highest standards of corporate governance and recognizes that good governance is pivotal in helping the business to deliver its strategies whilst generating sustainable shareholder value and meeting its obligations towards shareholders and other stakeholders. As an essential part of this commitment, the Bank operates within a well-defined governance structure and embeds governance principles and practices in its operations based upon the four cornerstones of accountability, transparency, fairness and integrity. The Bank follows the guidelines of the Central Bank of Kuwait, which are based on Basel Committee recommendations on Corporate Governance. The Bank also counts on the community’s support and partnership in advocating excellence in corporate governance. Hence, the Bank appeals to all other market players for joining the Bank in contributing to a continuous enhancement of its quality by practicing good corporate governance not only for the corporate growth, but also for the prosperity of the State of Kuwait. The provisions under this CG manual shall apply to the Board of Directors, the Executive Management, employees and the service providers of the Bank.
BOARD COMMITTEES STRUCTURE
Board Corporate Governance Committee (BCGC)
Members
Committee’s role
Responsible for assisting the Board of Directors in setting the Bank’s corporate governance policies, following up on their execution and their periodic review to ensure their effectiveness.
Board Audit Committee (BAC)
Members
Committee’s role
Responsible for setting and overseeing the sufficiency of internal control and the audit functions of the Bank, along with ensuring compliance with applicable laws, regulations, policies and codes of business conduct and ethics.
Board Credit and Investment Committee (BCIC)
Members
Committee’s role
Responsible for overseeing the Bank’s lending, credit recovery and investment activities, making recommendations to the Board of Directors within its delegated authorities, and implementing decisions made by the Board of Directors.
Board Risk Committee (BRC)
Members
Committee’s role
Responsible for reviewing and providing reports to the Board of Directors on the current and future risk strategy and tolerance of the Bank; supervising the implementation of this strategy by Executive Management; and ensuring the existence of effective systems for risk management in the Bank and the independence of the Risk Management function.
Board Nomination and Remuneration Committee (BNRC)
Members
Committee’s role
Responsible for presenting recommendations to the Board of Directors regarding Board Member nominations; reviewing the Board’s structure on an annual basis; undertaking performance evaluations of the Board and its individual Members on an annual basis; and developing a Bank-wide reward policy in line with applicable laws and regulations. In addition, BNRC is responsible for the appointment of individuals to key Executive Management posts, ensuring that they are occupied by qualified staff; and for setting performance standards and succession plans for Executive Management.
Corporate Governance Framework
The Bank’s Corporate Governance Manual is a reference framework drafted in line with the guidelines of the Central Bank of Kuwait. It reflects the commitment of all the Bank’s Board of Directors, Executive Management, employees and service providers to the best industry practices.
