AED 17.5 million, directors' remuneration, at a rate of 0.22% of net profits
48 million dirhams, "Etisalat" community contributions during 2019
Etisalat provides digital services and solutions to all customers and users. Photography: Ahmed Arditi
Etisalat Group revealed that, during the year 2019, it made community contributions worth 48 million dirhams, affirming that it will continue to adhere to its responsibility towards the local community in which it originated and developed.
In its corporate governance report issued yesterday, it stated that it has worked, during the past year as well, to make more efforts in the field of sustainability in a way that enables it to address many issues, such as climate change, and to define the importance, support and promotion of the concept of sustainable economic growth, and empower society to Enjoy the latest in communication and information technology.
The governance report emphasized Etisalat's keenness to provide various digital and innovative services and solutions to all customers and users, in a way that contributes to serving society and making a positive impact on it.
Member rewards
The report added that the remuneration of board members paid for the year 2019 amounted to 17.5 million dirhams, for their membership in the board of directors and its committees, with an allowance for attending committee sessions, compared to 16.6 million dirhams in 2018.
Etisalat’s corporate governance report stated that the board members ’remuneration consists of a lump sum that the board of directors recommends to the general assembly for approval, indicating that the articles of association of the“ Etisalat Group ”link the board of directors’ remuneration to the net profits achieved by the company. Not more than 0.5% of the net profit for the ended fiscal year, after deducting all depreciation and reserves.
The report indicated that the remuneration received by the members of the Board of Directors for the year 2019 constituted 0.22% of the net profits after deducting depreciation and reserves.
Board of Directors
According to the report, the board of directors is the authority that has all the necessary powers to carry out the company's business, with the exception of those pertaining to the general assembly, in accordance with the law or the company's articles of association.
He explained that the company's board of directors consists of 11 members, who appoint a shareholder of the government (the Emirates Investment Authority or any other entity that assumes the responsibility of representing the government in the company, according to the decision of the Council of Ministers), seven of them, the number that corresponds to the share of his contributions in the company, while The one who holds the remaining board seats is elected by the shareholders during the General Assembly.
Violation report
Etisalat’s governance report showed that, during the past year, “Etisalat” received 55 decisions to commit violations from the Telecommunications Regulatory Authority, of which the Authority withdrew one of them, in addition to a decision from the Securities and Commodities Authority.
The report detailed these decisions as “26 decisions related to indirect selling points, 19 decisions related to subscribers' registration, four decisions related to consumer protection, and four other decisions related to the transfer of telephone numbers, in addition to one decision related to requesting price controls, and another related to notification of the date of the meeting. The Board of Directors meeting one business day before instead of two business days.
The governance report affirmed that Etisalat has allocated the necessary resources to fulfill these requirements in a manner that satisfies the authority, while work is still underway to address these requirements, in addition to implementing adequate control controls to prevent any of these violations from recurring at a time when the company has worked to avoid Notify the Abu Dhabi Securities Exchange of holding a meeting of the company's board of directors one business day before the meeting instead of two working days.
«Emiratisation»
The corporate governance report revealed that Etisalat has always made sure to place the Emiratisation process at the top of its priorities, as the rate of Emiratisation took an upward curve during the past three years, so that the national cadres in the company reached 47.1%, 47.6%, and 47.8% of the total Jobs, in 2017, 2018, and 2019, respectively.
Female cadres
Etisalat attaches great importance to supporting female cadres, and is keen on their participation in all areas of the company's work, including its participation in the membership of its board of directors, stressing that this concern culminated in the appointment of a female cadre as a member of the board, thus constituting the percentage of female cadres representation in the board of directors. 9.1% of all board members.