In brief
Board evaluation is a cornerstone of sound corporate governance. It is the process by which Boards assess their effectiveness, identify gaps, and align with the company's strategic direction. Under the UAE Capital Market Authority (CMA) Corporate Governance Code, board evaluation is no longer merely best practice, it is a regulatory requirement. UAE-listed Public Joint Stock Companies (PJSCs) must conduct annual board evaluations, with an external independent evaluation at least every three years.
Findings must be disclosed in the company's annual governance reporting and should inform board composition, training, and succession planning. Companies that fail to maintain a credible evaluation process risk regulatory scrutiny, weakened governance, and diminished stakeholder confidence. This note sets out the key requirements, the evaluation process, and how the Board and the Nomination and Remuneration Committee should approach implementation.
Board Evaluation: Strengthening Governance Through Effective Performance Review
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Greg Hastings
Senior Manager Entity Governance & Compliance - EGC, PwC Middle East
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