By Andy Sambidge
Advisory Council approves move to limit bonus payments to maximum of $137,000.
A five percent bonus cap has been imposed on board members of banks and shareholding companies in Qatar, it has been announced.The Gulf state's Advisory Council has unanimously approved the move after rethinking original recommendations of six percent.
The Advisory Council also said the maximum bonus of an individual beneficiary must not exceed QR500,000 ($137,287), The Peninsula reported on Tuesday.
The council’s proposal will be sent to the Cabinet for the approval for amending Article 18 of the Commercial Law, the paper added.
Dr Mohammed Al Attiya, Minister of Business and Commerce, said he agreed that bonus packages needed to be restructured, adding that the Cabinet had already prepared a draft law to amend the law.
Yousuf Hussein Kamal, Minister of Economy and Finance, also supported the move, saying it was also important to change the system of selecting board members.
He said there were some people who had been on the board of directors of some companies for the last 30 years. More qualified people with a strong academic background must come to the boards, he added.
Ahead of submitting its proposal on the bonus ceiling, discussions were held with top officials of the Ministry of Business and Trade, the Ministry of Economy and Finance, Qatar Central Bank and Qatar Financial Markets Authority.
Separately on Tuesday, Central Bank governor Abdullah al-Thani said Qatar’s economy will grow 16 percent this year.