Saudi Arabian Monetary Authority

Main Center
Banking Policies Department

Reference No.: 381000063670
Date: 14/06/1438
Attachments: None

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Circular

Respected, Your Excellency, Greetings,

Subject: Remuneration for Chairs and Members of Boards of Directors of Local Banks, Insurance Companies and Reinsurance Companies.

Reference is made to the updated Companies Law issued by Royal Decree No. (M/3) for 1437H, and to the Authority's circulars concerning the remuneration of chairs and members of boards of directors of local banks, insurance companies, and reinsurance companies.

The Authority emphasizes that local banks, insurance companies, and reinsurance companies must comply with the following:

1. The upper limit for remuneration, allowances, and financial or in-kind benefits for members of boards of directors and their committees shall be five hundred thousand Saudi Riyals annually, inclusive of meeting attendance allowances.

2. The upper limit for the board and its committee meeting attendance allowance shall be five thousand Saudi Riyals per session.

3. Reasonable actual expenses and disbursements (including travel and accommodation costs) borne by local banks, insurance companies, and reinsurance companies for a board member in performing his duties are excluded from the annual remuneration upper limit.

4. The Audit Committee is exempted from the upper limit stated in paragraph (1) above.

For your information and necessary action.
Yours sincerely,

The Authority Ahmed bin Abdullah Al-Sheikh Deputy Governor for Supervision

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Distribution Scope:

• Local banks and financial institutions.
• Insurance companies and reinsurance companies.

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P.O. Box 7997, Riyadh 11179, Postal Address: Ziyad Center, Telex 406400, Phone 4732000, Fax 4777414