Updated 02 May 2016
Agence France Press
High executive pay targeted by wealth fund
Updated 02 May 2016
Agence France Press
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OSLO: Norway’s sovereign wealth fund, the biggest in the world with shares in more than 9,000 companies, will add its influential voice to those of investors increasingly concerned by executives’ skyrocketing pay.
Worth nearly 7 trillion kroner (757 billion euros, $868 billion), the fund will lay out its stance on the thorny subject in a “position paper,” a spokeswoman for the division of the Norwegian central bank responsible for managing the fund said.
“It is a theme that we will watch,” Martha Skaar said.
Positions taken by the fund, which holds the equivalent of 1.3 percent of world market capitalization, are seen as important indicators to other investors.
The publication date of the position paper is not yet known, but it will certainly spike the interest of investors who see the Norwegian fund as a good role model, and who are irritated by the ballooning pay of some executives.
The issue has come to a head in recent weeks at some industry giants.
BP shareholders overwhelmingly rejected on April 14 a pay deal worth $19.6 million (17.3 million euros) for chief executive Bob Dudley, up from the $16.4 million he currently receives, as the group clocked up a loss of $6.5 billion for 2015.
And last week, Renault shareholders also said no to a pay deal for chief executive Carlos Ghosn.
“7.2 million euros for a part-timer?,” thundered the Proxinvest financial consultancy, which contested the remuneration, in an allusion to the fact that Ghosn also serves as head of Japanese carmaker Nissan.
While the shareholder votes were purely non-binding and will not be followed, they illustrate just how sensitive the issue is.
In a report published on April 21, international influential business figures said executive pay at major British companies sometimes rewarded failure.
The following week, several British groups saw their pay deals rejected or contested by shareholders.
In Germany, Volkswagen drew public ire for paying out 63 million euros to 12 top executives for 2015, as the company suffered its first loss in more than 20 years because of an emissions-rigging scandal.
Nonetheless, negative votes like those at BP and Renault remain rare.
In France in 2015, shareholders approved pay packets 87 percent of the time, compared to 92 percent in 2014, according to an analysis of 95 annual general meetings conducted by the specialized magazine L’Hebdo des AG.
The Norwegian fund, which voted in favor of Dudley’s pay raise, has not been too critical of executive pay so far.
In 91 percent of cases, it approved the salaries paid out to the top-paid US executives in 2014, according to Norwegian financial daily Dagens Naeringsliv.
But times are changing.
“We have so far looked at this in a way that has focused on pay structures rather than pay levels. We think, due to the way the issue of executive remuneration has developed, that we will have to look at what an appropriate level of executive remuneration is as well,” Yngve Slyngstad, CEO of the fund, told the Financial Times.
In a globalized world with highly-competitive sectors, companies are torn between the need to attract top-notch talent, and the need for moderation, especially in hard times when cutbacks are called for.
The Norwegian fund has itself come in for criticism.
Dagens Naeringsliv has in recent days revealed that the fund paid out bonuses that were sometimes as high as 200 percent of employees’ fixed wages, far more generous than the EU recommendation of up to 100 percent, or 200 percent in exceptional cases.
The Norwegian fund’s investment policy is run according to strict ethical rules, with a focus on sustainable economic, environmental and social development.
Those rules bar it from investing in companies accused of serious violations of human rights, child labor or serious environmental damage, as well as manufacturers of “particularly inhumane” arms, and also tobacco firms.
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Updated 17 sec ago
Reuters
Oil Updates — crude slips as markets weigh impact of US-Iran talks, demand
Updated 17 sec ago
Reuters
LONDON: Oil prices slipped on Tuesday as traders weighed the impact on supply from Russia-Ukraine peace talks and US-Iran negotiations, strong front-month physical demand in Asia and a cautious outlook for China’s economy.
Brent futures for July dipped 19 cents to $65.35 a barrel by 9:25 a.m. Saudi time.
June US West Texas Intermediate crude futures, which expire on Tuesday, gained 3 cents to $62.72, while the more active July contract slipped 17 cents to $61.97 a barrel.
Discussions on Iran’s nuclear program would “lead nowhere” if Washington insisted that Tehran slash uranium enrichment activity entirely, state media quoted Deputy Foreign Minister Majid Takhtravanchi as saying on Monday.
The remarks came after US special envoy Steve Witkoff reiterated on Sunday that Washington would require any new deal to include a pact to refrain from enrichment, a precursor to the development of nuclear bombs.
A deal would have paved the way for the easing of US sanctions and allowed Iran to raise oil exports by 300,000 barrels to 400,000 barrels per day, StoneX analyst Alex Hodes said.
Prices were also supported by expectations of near-term firm physical demand, amid healthy refining margins in Asia.
“The Asian buying cycle got off to a very mild start, but strong margins and the end of maintenance should still prove supportive,” said Sparta Commodities’ analyst Neil Crosby.
Singapore complex refining margins, a regional bellwether, hovered at more than $6 a barrel on average for May, LSEG data showed, up from April’s average of $4.4 a barrel.
Markets were eyeing Russia-Ukraine peace talks for a direction on Russian oil flows, which could swell supply and weigh on prices.
“Energy markets have been focused on potential peace talks, with an eventual deal possibly leading to an easing of sanctions against Russia,” ING analysts said in a note to clients.
A US sovereign downgrade by Moody’s also dampened the economic outlook for the world’s biggest energy consumer, pinning back oil prices.
The ratings agency cut the US sovereign credit rating by one notch on Friday, citing concerns about its growing debt of $36 trillion.
Piling more pressure on oil prices was data showing decelerating industrial output growth and retail sales in China, the world’s top oil importer, with analysts expecting a slowdown in fuel demand.
In a client note, BMI analysts projected a decline of 0.3 percent in 2025 consumption on the year, hit by a slowdown across oil product categories.
“Even if China adopts stimulus measures, it may take time to have a positive impact on oil demand,” they added.
Topics: oil updates oil prices
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Updated 5 min 50 sec ago
AFP
EU looks to give four billion euros in aid to Egypt
- EU must formalize agreement before a first disbursement can be released
- Deal comes along with an IMF loan program already in place
Updated 5 min 50 sec ago
AFP
BRUSSELS: The EU said Monday it would give Egypt another €4 billion ($4.5 billion) in aid in the form of loans to allow Cairo to meet part of its financial needs, along with an IMF loan program already in place.
A provisional agreement on the European Union aid was reached between the Council of the EU, representing the bloc’s member states, and the European Parliament. The two institutions have to formalize the agreement before a first disbursement can be released.
Early last year, the IMF expanded a 2022 loan package for Egypt from $3 billion to $8 billion to help the country manage economic challenges amid regional instability.
The EU council said the European loan instalments for Egypt would be “linked to satisfactory progress with the implementation of both the IMF program.”
The EU and Cairo in March 2024 signed a “strategic partnership” which included financial assistance of five billion euros, of which the first billion was given over the following month.
Topics: Egypt EU Council IMF Egypt economy International Monetary Fund (IMF)
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Updated 19 May 2025
Nour El-Shaeri
Saudi Arabia opens three sports facilities to private investment
Updated 19 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia has unveiled a major initiative to open up key sports venues to private sector investment, signaling a significant step forward in the Kingdom’s efforts to transform the industry.
Announced by the Ministry of Sport, the Sports Facilities Investment Project offers private investors access to three of the nation’s premier sports complexes: King Abdullah Sports City and Prince Abdullah Al-Faisal Sports City in Jeddah, and King Abdulaziz Sports City in Makkah.
Under the initiative, a range of five-year renewable contracts will be made available, the Saudi Press Agency reported. These include naming rights, leasing arrangements for non-match day use, and contracts to manage, operate, and maintain the venues.
The move supports Vision 2030, Saudi Arabia’s national strategy to diversify its economy and position the country as a global destination for sports, tourism, and entertainment.
With the 2034 FIFA World Cup on the horizon, the government is stepping up efforts to attract private capital into its burgeoning sports sector.
According to SPA, the initiative is part of “modern operational models that aim to raise facility efficiency, improve service quality, broaden commercial opportunities, and enhance the fan experience.”
Saudi Arabia’s sports industry is currently valued at $8 billion and is projected to grow to $22.4 billion by 2030, fueled by investments in sports clubs, academies, facilities, and equipment.
The government has already identified 20 high-priority investment opportunities within the sector, with a combined potential value of up to $20 billion.
Hosting the 2034 World Cup is expected to further accelerate this growth, with forecasts indicating over 10 million international visitors, 1.5 million new jobs, and an economic boost of $9 billion to $14 billion to the national GDP. The tournament will be staged across 15 stadiums in cities including Riyadh, Jeddah, Alkhobar, Abha, and the futuristic city of NEOM.
Interested investors are encouraged to submit proposals via the government’s “Furas” investment portal during the designated application period.
Officials described the project as a strategic gateway into one of the Kingdom’s most dynamic and fast-growing industries.
Topics: Investment private sector
Updated 19 May 2025
MOHAMMED AL-KINANI
PIF convenes 1,000 global executives in Riyadh to shape next phase of governance
- Discussions centered aroundredefining board impact in the national transformation
- The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda
Updated 19 May 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Public Investment Fund gathered over 1,000 top executives in Riyadh for its second Directors’ Gathering, unveiling new governance priorities amid rapid portfolio expansion.
The event, which brought together representatives from approximately 220 portfolio firms — including over 100 established by PIF itself — focused on enhancing board performance, aligning strategic priorities, and promoting cross-sector synergies to deepen collaboration across the fund’s growing portfolio.
Discussions were centered aroundredefining board impact in the context of national transformation, strengthening oversight in a changing risk landscape, and navigating new governance challenges posed by artificial intelligence and emerging technologies, according to a press release.
The Directors’ Gathering, a knowledge-sharing platform for #PIF portfolio companies, featured majlis sessions and panels on national transformation, succession planning and risk management. pic.twitter.com/99crta3swY
— Public Investment Fund (@PIF_en) May 18, 2025
The event comes as PIF accelerates its dual mandate of advancing Saudi Arabia’s economic diversification and generating long-term global returns. Since its 2015 transformation, the fund has grown into a globally influential investor, managing $941.3 billion in assets in 2024 and playing a key role in Vision 2030.
Speaking to the delegates, PIF Governor Yasir Al-Rumayyan, highlighted PIF’s vision and that the roles of boards include three main priorities: brainstorming and setting strategy, ensuring the right governance frameworks are in place for management, and monitoring performance, with a view to the ever-changing macro-economic context and evolving innovations.
“He stressed that this could transform challenges into opportunities to lead, grow and innovate,” the release added.
H.E. Yasir Al-Rumayyan, Governor of #PIF, gave the opening remarks at the PIF Directors’ Gathering.
— Public Investment Fund (@PIF_en) May 18, 2025
Al-Rumayyan also urged directors to view PIF and its 220 companies as a unified ecosystem, emphasizing the importance of leveraging the group’s collective capabilities. He added that collaboration should be considered the primary measure of success.
The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda and serves as a platform for knowledge exchange and governance development not only within its portfolio but across Saudi Arabia’s business ecosystem.
PIF was ranked as the world’s second most active sovereign investor by deal value in February, committing $3 billion in global transactions, according to Global SWF, a data platform tracking sovereign wealth fund activity.
In a fireside chat titled “Aligning the Economic Vision,” Minister of Economy and Planning Faisal Al-Ibrahim, who also sits on the the sovereign wealth fund’sboard, said the existence of PIF portfolio companies and the related ecosystem is in itself a form of resilience, according to a post on the fund’s official X account.
H.E. Faisal Alibrahim, Minister of Economy and Planning, and #PIF Board Member, attended a fireside chat at the #PIF Directors’ Gathering on ‘Aligning the Economic Vision’. pic.twitter.com/MU3laBynem
— Public Investment Fund (@PIF_en) May 18, 2025
Al-Ibrahim added: “We are transforming our economy and restructuring the Saudi economy to create more engines of growth, more drivers of progress, and a diversified set of growth sources.”
In another fireside chat titled “Evolving Investment Strategy,” Head of the Global Capital Finance Division and Head of the Investment Strategy and Economic Insights Division at PIF, Fahad Al-Saif, said the fund is responsible for investing in assets that generate maximum economic impact for Saudi Arabia while also maximizing financial returns for the fund.
“This is done within a robust framework, across duration for us to become a generational fund in the future,” he said in another X post by PIF.
Fahad AlSaif, Head of the Global Capital Finance Division and Head of Investment Strategy and Economic Insights Division at #PIF participated in a fireside chat on ‘Evolving Investment Strategy: A Focus on Performance’ at the PIF Directors’ Gathering. pic.twitter.com/rArT1hXd3x
— Public Investment Fund (@PIF_en) May 18, 2025
Topics: Saudi PIF Public Investment Fund (PIF)
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Updated 19 May 2025
Nour El-Shaeri
Closing Bell: Saudi indices close in red at 11,405
- Parallel market Nomu dropped 155.91 points to close at 27,499.65
- MSCI Tadawul Index decreased by 1.62 points to end at 1,454.93
Updated 19 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index decreased on Monday, losing 33.66 points, or 0.29 percent, to close at 11,405.28.
The total trading turnover of the benchmark index was SR4.8 billion ($1.2 billion), as 50 stocks advanced and 191 retreated.
The Kingdom’s parallel market, Nomu, dropped 155.91 points, or 0.56 percent, to close at 27,499.65. This comes as 27 of the listed stocks advanced while 47 retreated.
The MSCI Tadawul Index also decreased by 1.62 points, or 0.11 percent, to close at 1,454.93.
TASI’s top performer was Al-Baha Investment and Development Co., which surged by 6.74 percent to reach SR3.96.
Other top performers included Saudi Printing and Packaging Co., which gained 5.14 percent to close at SR11.86, and the National Co. for Learning and Education, which rose 4.82 percent to SR156.60.
Fawaz Abdulaziz Alhokair Co. was also among the top performers, increasing 4.40 percent to SR17.54.
Middle East Specialized Cables Co. saw the steepest decline, with its share price easing 5.83 percent to SR31.50.
National Gas and Industrialization Co. also saw its stock prices decline 4.71 percent to SR76.80. United Electronics Co. also dropped to SR85.90, a 4.66 percent decrease.
Alinma Bank announced plans to issue US dollar-denominated sustainable additional Tier 1 capital certificates, following a board resolution passed on May 5, 2025, authorizing the CEO to execute the process.
The issuance, conducted through a special purpose vehicle, will target eligible investors in Saudi Arabia and abroad. It aims to bolster the bank’s Tier 1 capital and support general banking activities.
The final size and terms will depend on market conditions, with the transaction subject to regulatory approvals and applicable legal requirements.
Abu Dhabi Islamic Bank PJSC, Alinma Capital, and Emirates NBD Bank PJSC have been appointed as joint lead managers for the offer. Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank will also serve in the same capacity.
Alinma’s share price dropped 1.97 percent to settle at SR27.40.
Separately, Saudi Ground Services Co. signed a Shariah-compliant banking facility agreement with Banque Saudi Fransi for up to SR300 million.
Dated May 15, the flexible credit line allows the company to draw funds as needed to meet working capital requirements.
The facility is valid through April 30, 2026, with an option to renew for one year, and is secured by a promissory note.
Saudi Ground Services said the facility aims to boost liquidity, support working capital needs, and back its strategic growth plans.
SGS saw a 1.03 percent drop in its share price to settle at SR48.20.
Topics: TASI NOMU MSCI
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Closing Bell: Saudi main index slips to close at 11,438
