Compensation Committee
The Compensation Committee comprises three directors, two of whom are independent. Its members are Ronald Stride (Chairman), Veronica John, and Hamidullah A. Mohib. Meetings are held four times in the year in person and in conjunction with Board meetings. The meetings are attended by the Chief Executive and the Chairman of the Audit Committee.The principal role of the committee is to establish compensation policy for the Chief Executive Officer, members of the Management Board, and other senior management. These guidelines include base salary, bonus, and fringe benefits. The committee also reviews the performance of senior management through a formal goalsetting and monitoring mechanism. Yearly bonuses are established based on the Bank’s financial performance against the annual budget and individual management achievement of their goals. The committee also reviews Human Resource policies and procedures for employees.
The committee reports to the Board and shareholders on the targets, goals, and performance of management as well as proposed changes to the compensation structure and policies and procedures. The contracts for the Chief Executive Officer and independent directors are also determined by the committee and reported to the Board and shareholders.
Risk Committee
The Board’s committee to oversee comprehensive risk governance and oversight comprises Hasib Ahmed (Chairman), Ronald Stride, and Hamidullah A. Mohib. Meetings are held four times in the year in person and in conjunction with Board meetings. The meetings are also attended by the Chief Executive and the Chairman of the Audit Committee.The principal role of the committee is to review the Bank’s risk exposure under different products. This encompasses foreign exchange positions, assets and liabilities, capital adequacy, credit and market risk, and sovereign risk. The committee also reviews performance of the classified and non-performing loan portfolio and, most importantly, reviews and submits to the Board of Supervisors all the Bank’s policies associated with risk management.
The committee reports to the Board and shareholders on the targets, goals, and performance of the portfolio and highlights any issues that require their attention and decision.
Audit Committee
The Audit Committee is established under the Law of Banking in Afghanistan. The Committee is responsible directly to the shareholders and the Chairman, and members are appointed at the annual general meetings of shareholders. Appointments are for not more than four years and may be renewed for like periods. Members of the Board of Supervisors or the Management Board may not serve on the Audit Committee. Members of the Committee are subject to the same fit and proper requirements as members of the Board of Supervisors. In 2011 the committee had five members, all qualified and experienced in accounting or banking.The Audit Committee is responsible for overseeing financial reporting, compliance with risk management policies and procedures, internal controls, compliance, ethics, and management and functioning of internal audit. It is also responsible for maintaining an appropriate relationship with the external auditors and meets with them on the completion of the annual audit and quarterly reviews.
Meetings are usually held four times in the year (four times in 2011) in person and in conjunction with Board meetings. The meetings are attended by the Chief Executive, Head of Internal Audit, and appropriate Management Board members. Minutes are presented at the next Board meeting when the committee chairman reports on issues requiring Board attention.