We all remember at the time of the global financial crisis, when the government intervened, supported the banks, and the Ministry of Economy approved a law that prohibits the disbursement of any bonuses to members of the companies ’boards of directors, if they do not achieve profits, or there are cash distributions to shareholders, yet one of the companies turned to this decision, so why It distributes profits to shareholders, and no bonuses for members of boards of directors, but it gave each member allowances in millions!

Unfortunately, this particular item needs to be carefully reviewed, so that a ceiling is set for these allowances, in a way that does not irritate shareholders who are awaiting dividends and dividends on their shares, and they only find false justifications!

Therefore, it is very necessary to reorganize the exchange of a percentage of the profits on the boards of directors of joint-stock companies, and not be satisfied with what is currently in place, according to the conditions of the Securities Commission, and the necessity of the approval of the General Assembly on the total amount of distributions and bonuses, without specifying the proportion of these bonuses By the general assembly, and it is the board of directors that determines this percentage of total profits!

It should also be very clear that the profits that require bonuses are those resulting from the company's real operating business, and not from the sale of assets, or revaluations!

This usually happens, as the profits made by the company appear for a year or more, at a time when the operational activities achieve a sharp decline, up to the extent of the loss that accumulates year after year, and yet bonus distributions continue to occur to the members of the Board of Directors!

The members of the boards of directors of the joint-stock companies are non-executives, and therefore their work is essentially considered voluntary, because it is in their interest to succeed the company and raise the value of its shares, since they are shareholders, and they may not view their membership as a job for which they receive a high income, and the operating profits are the ones that reflect The effort made by the members of the Board of Directors, which is the most prominent title of their performance, so the bonuses must be related to operating profits only.

It is true that the law allocates bonuses to members of the boards of directors at a rate of 10% أقصى as a maximum of profits, but that is conditional on achieving profits, and the existence of distributions to shareholders, not that companies come and have achieved profits, and then withhold dividends from shareholders for the year 2019, with a pandemic argument « Corona », and at the same time bonuses are distributed in millions to members of their boards of directors, is it reasonable for these companies to reward members of the boards of directors and punish shareholders ?! It also does not make sense for the allowances to rise in an imaginary way, and they are allocated very high sums of money!

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