AMMAN — The Social Security Investment Fund (SSIF) on Wednesday highlighted the adherence of its representatives on the boards of directors of companies in which the Social Security Corporation (SSC) has a stake to corporate governance standards.
The SSIF also stressed the commitment of its representatives to the executive regulations governing board representation, as issued by the SSC Board of Directors, as well as the governance guidelines and disclosure requirements set by regulatory authorities, according to a SSIF statement.
The fund's directives include the necessity of establishing policies for granting rewards and incentives to board members and senior management, ensuring they are based on strategic, financial, and non-financial performance indicators that reflect the companies' financial and operational performance and their sustainability plans.
These directives also stress the importance of limiting travel for board members whenever possible, maintaining regular board meetings and adhering to periodic disclosure in line with International Financial Reporting Standards (IFRS), the statement said.
As part of its ongoing efforts to establish a culture of governance excellence, the SSIF said that it remains at the "forefront" of advancing corporate governance frameworks by monitoring and adapting to evolving economic and regulatory landscapes.
The SSIF also said that it organises specialised forums for its board representatives in cooperation with regulatory bodies and industry experts, facilitating the exchange of insights, the spreading of best practices and the optimisation of governance and leadership standards.
The SSIF also integrated the findings of these forums, alongside stakeholder feedback, into the continuous refinement of its guiding framework for board representation in SSC-invested companies.
The framework outlines the responsibilities, authority, and fiduciary obligations of representatives while reinforcing their alignment with the fund’s overarching investment strategy.
Through "rigorous" oversight, performance monitoring, and structured reporting mechanisms, the SSIF ensures that its representatives execute their mandates with the "utmost diligence" and strategic foresight, the statement said.
"The initiative forms part of a comprehensive suite of measures undertaken by the SSIF to elevate governance standards, enhance financial stewardship and safeguard the enduring prosperity of Social Security investments," according to the statement.
By driving the adoption of "prudent" corporate strategies, strengthening financial resilience, and instituting stringent governance controls, the SSIF remains steadfast in its mission to foster a corporate ecosystem that exemplifies the "highest" standards of professionalism, accountability and long-term value creation.
