Corporate Governance Score of JSC NC "KazMunayGas" Grew from 59.9% in 2011 to 71.7% in 2013
Following the results of the independent corporate governance diagnostics performed in five subsidiaries of the Samruk-Kazyna JSC, the corporate governance score of JSC NC "KazMunayGas" in 2013 has amounted to 71.7%. This rating has been obtained through interaction of tree components - 'Structure', 'Processes', 'Transparency', taking into account their values: structure - 69.2%, processes - 64.9%, transparency - 80.5%.
Corporate governance diagnostics of JSC NC "KazMunayGas" was performed by the PricewaterhouseCoopers LLP in accordance with the methodology for diagnostics of corporate governance in the Samruk-Kazyna JSC group companies during June-September this year. The PricewaterhouseCoopers LLP's specialists have examined the events during 2012 and the first half of 2013, held 20 interviews with the Members of the Board of Directors, the Management Board and the manager of the relevant structural subdivisions of JSC NC "KazMunayGas", and studied 950 documents.
Following the results of the diagnostics of corporate governance in JSC NC "KazMunayGas", the following key positive points have been noted:
- Enhanced efficiency in the performance of the Board of Directors. Meetings of the Board of Directors are held on a regular basis and mainly in praesentia, with active participation of all members. Strengthening the role of the Board of Directors in making key decisions and active involvement of Independent Directors in discussing key matters;
- Active efforts of the Committees under the Board of Directors, preliminary and detailed discussion of all matters at the Committees. Independent Directors often address difficult questions to the executive management;
- Highly efficient centralized Internal Audit Service (IAS). The IAS is directly accountable to the Chairman of the Audit Committee, and Independent Director, and actively works on a number of key matters for the Board of Directors;
- Structure of pay of the executive employees is transparent, formalized in the internal documents and partially dependent on the company's results;
- The company releases to the public domain the crucial information on its operations, as provided for by the best practices, including key performance indicators;
- A number of measures have been implemented to streamline to corporate structure and re-register a number of subsidiaries from the JSC form into LLPs.
PricewaterhouseCoopers LLP's recommendations given in the course of the corporate governance diagnostics will be set forth in the action plan to improve corporate governance in JSC NC "KazMunayGas" for 2014-2015.