A top shareholder objects board bonus payment without distributing dividends to other shareholders

Khalid bin Saleh Al Shathri, a top shareholder in the Saudi Stock Exchange (Tadawul) expressed, in an interview with Argaam, his objection to the decision related to paying bonuses to the board of directors, without distributing dividends to other shareholders.

Al Shathri called for amending the decision, as board bonuses should be linked to the company’s achievements and accompanied with paying dividends to shareholders.

He further explained that bonuses are a source of income for board members and despite the fact that they are not responsible for the company’s performance or products.

Al Shathri cut his ownership in Saudi Advanced Industries Co. (SAIC) by selling 0.01%, or 2,000 shares to his son.

“My son is a board member and the sale didn’t have a material impact,” he noted.

Al Shathri expressed optimism towards the stock market, indicating that he currently invests in nearly 30 listed companies and his portfolio recorded a robust performance.