The Business Outlook section in SABIC’s 2019 annual report (page 62) may be found at
https://www.sabic.com/en/newsandmedia/media-centre-publications
Required: Provide (1) a list of items forecasted (e.g., sales, profits, economic growth), (2) the forecast horizon (e.g., one year ahead, six months ahead, not stated), and (3) the amount forecasted (e.g., growth of SR 10 million, 10 percent growth). How might an investor or analyst use such forecast information? Overall, how useful is Daimler’s forecast disclosure? Why do you say so?
The corporate governance disclosure of the SABIC (page 82) in SABIC’s 2019 annual report may be found at
https://www.sabic.com/en/newsandmedia/media-centre-publications
Required: Review the corporate governance disclosure of the SABIC (page 82). Some of the disclosures relate to independence requirements for the board of directors and audit committee.
What is the independence requirement for the board of directors?
How many board members are independent? Does this number meet the requirement?
Certain board members are considered not independent. What criteria were used to determine that these board members are not independent? What rationale can you think of for viewing these board members as not independent?
How many members does the audit committee have? What percentage of these members is independent?
Sample Solution
