Publication
Omar Shaban Ismail · Sama News Agency · 2011
The third article in the Palestinian joint-stock companies series examines board membership selection, astronomical remuneration reaching $3,000 per hour, conflicts of interest, and the absence of effective oversight mechanisms, calling for urgent corporate governance reforms.
The third article in the Palestinian joint-stock companies series examines board membership selection, astronomical remuneration reaching $3,000 per hour…
This third article in the Palestinian joint-stock companies series examines board membership dynamics, selection criteria, astronomical remuneration packages, and conflicts of interest that undermine corporate accountability.
Palestinian joint-stock companies award their board members an annual bonus ranging from 5% to 10% of net profits. At a company generating $30 million in net profit, a 5% board bonus translates to $150,000 per member annually — equivalent to $10,000 per board meeting, or over $3,000 per hour for a typical 3-hour session. Many companies refuse to disclose these figures publicly.
Some board members sitting on multiple company boards accumulate annual remuneration exceeding $1 million. Major shareholders deliberately minimize board size to concentrate control and maximize per-member bonuses, appointing members selected for compliance rather than genuine oversight. Board membership is also instrumentalized politically — used to secure protection from accountability and cement alliances with powerful individuals.
These dynamics create a "casino economy" — astronomical returns bearing no relationship to productive effort, distorting Palestinian society's social fabric and undermining the principle of accountability essential to genuine corporate governance reform.
Topic: Palestinian Economy — Corporate Governance · Board of Directors · Transparency · Accountability — Text © Sama News Agency — archived here with attribution to the source. — Original source