Corporate governance score of JSC NC “KazMunayGas” grew from 59.9% in 2011 to 71.7% in 2013
According to the results of independent diagnostics of the corporate governance carried out in five subsidiaries of JSC “Samruk-Kazyna”, in 2013 the level of corporate governance in JSC NC “KazMunayGas” amounted to 71.7%. This score was received through the interaction of three components – “Structure”, “Processes”, “Transparency” given their quantitative values: structure – 69.2%, processes – 64.9%, transparency – 80.5%.
Diagnostics of the corporate governance of JSC NC “KazMunayGas” was conducted by PricewaterhouseCoopers LLP in accordance with the methodology for diagnosing the corporate governance in the companies of JSC “Samruk-Kazyna” during the period from June to September this year. The PricewaterhouseCoopers LLP experts investigated the events that occurred in 2012 and in the first six months of 2013, conducted 20 interviews with the members of the Board of Directors, Management Board, and with the heads of relevant departments of JSC NC “KazMunayGas” and examined 950 documents.
Diagnostics of the corporate governance of JSC NC “KazMunayGas”revealed the following key positive aspects:
- enhancing the effectiveness of the BoD activity. Meetings of the Board of Directors are held regularly and mostly by personal attendance with active participation of all the members. Strengthening of the BoD role upon making key decisions and active involvement of independent directors in discussion of key issues;
- Active work of the Committees attached to the Board of Directors, timely and detailed discussion of all issues at Committees. Independent directors often raise complex questions before executive managers;
- Highly efficient centralized Internal Audit Service (IAS). The IAS reports directly to the Chairman of the Audit Committee, Independent Director and is actively working on a number of key issues for the Board of Directors;
- The structure of senior employees’ remuneration is transparent, formalized in internal documents and partly depends on the company’s performance;
- The company discloses relevant information about its activities provided by best practices, including key performance indicators;
- A number of measures were implemented to simplify the corporate structure and re-registration of a number of subsidiaries from JSC to LLP.
The recommendations given by PricewaterhouseCoopers LLP during diagnosing the corporate governance system will be reflected in the action plan for improving the corporate governance system in JSC NC “KazMunayGas” for 2014-2015.