Maali Qasem, the chief executive of Schema, a corporate governance advisory firm in Dubai, has been the point of call for many regional companies looking to increase accountability and transparency. She talks about how promoting change at the corporate level is done effectively in this region.
Corporate governance is talked about a lot but what does it actually mean?
In its simplest form it is about managing the relationship between the board of directors and shareholders by being more transparent and accountable. But it's not always easy to adopt European policies for this region. Certain variables need to be taken into consideration, with religion coming first and culture second.
How does this change the way you approach companies?
There's a certain way businesses work here which isn't always in the best interests of the company. Take family businesses; most of the time the father is working with his son, but that hardly ever works because you are making decisions only with family. The father is reluctant to give away control. It's about encouraging the slow withdrawal of authority from the family to a board.
What types of issues could be regarded as poor corporate governance?
If a board decides to give out large compensation packages for instance or unquestionably support one individual, we have a duty as whistle-blowers to some extent to make sure that company is held accountable. There have been a lot of cases of senior executives undertaking inappropriate behaviour. With cases concerning insider trading, for example, the punishment was a slap on the wrist.
Don't companies usually understand if they are doing the right thing or not?
You have a lot of companies that think they are complying with corporate governance but actually don't understand it. Fraud and corruption needs to be tackled publicly, quickly and criminally to show accountability. Regulation is not always the solution.
Do these companies come to you or do you reach out to them?
Often it's an investor request on behalf of the company, sometimes it's the company themselves.
The word Schema has connotations with the word "scheme", or an underhand plan. How do companies perceive Schema?
Schema actually translates to "tactical thinking" in Latin so that's not the intention. Some people are scared of us because we're advocating change. But that change is tailored to them and we've seen some companies change their corporate governance in under six months.
Are people more aware of corporate governance in light of the political unrest we've seen this year, some of which exposed rampant corruption?
It has certainly played a role. It is driving people to be more aware not just of their own business but of the national economy. Companies have approached us post-investigation to assess corporate governance and to tick all the boxes.
