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Corporate Governance & Qualification for Listing Output #5

Governance Output · #5

Salary Scale & Benefits Design

Establishing a structured, market-competitive salary and compensation architecture that ensures internal equity and aligns with listing disclosure and governance guidelines.

A structured salary scale is not merely a table of payments; it is a vital tool for corporate governance and long-term stability. At Next Dimension, we design comprehensive compensation and reward frameworks aligned with labor market dynamics and CMA governance standards, ensuring executive retention and operational compliance.

Interactive Grade & Compensation Bands Explorer

Select a job category below to explore its compensation distribution and governance framework:

Executive Management (C-Suite / VPs)

Grade Range: 1 - 3
Basic 50%
Housing 25%
Transport 10%
Incentives 15%
Basic Salary
50%
Housing Allowance
25%
Transportation/Travel
10%
Incentives & Perks
15%
Approval Authority

Approved directly by the Board of Directors based on recommendations from the Nomination & Remuneration Committee (NRC).

Performance Link (KPIs)

Annual bonuses linked strictly to general financial performance, market share growth, and bottom-line target achievements.

Special Listing Perks

Eligibility for Employee Stock Option Plans (ESOPs), executive medical insurance (VIP Grade), and corporate travel allowance.

Significance of Compensation Structures & ESOPs for Listing

Prior to listing, regulators and financial advisors analyze compensation structures to ensure executive retention and operational sustainability. We guide companies through two major alignment steps:

Corporate Governance & Disclosure

CMA regulations mandate comprehensive disclosures in the Board of Directors' report and the IPO prospectus detailing compensation, benefits, and remuneration awarded to Board members and the top five executives (including CEO and CFO). This necessitates professional job grading and structured salary schedules.

Employee Stock Option Plans (ESOP)

We design and set up Employee Stock Option Plans (ESOPs) as powerful long-term incentive programs. ESOPs align employee interests with shareholder value and stock performance, stabilizing leadership and boosting morale during the critical transition to a public company.

Our Salary Grading & Compensation Methodology

Next Dimension uses a structured, market-aligned methodology to formulate fair, competitive, and compliant pay structures:

1

Job Evaluation & Grading

Employing factor-point analytical methodologies to assess all roles, defining internal hierarchy and grading tiers based on complexity and impact.

2

Market Salary Benchmarking

Analyzing local and sector-specific salary ranges in the KSA market to determine midpoints, ensuring the pay scales remain competitive with peers.

3

Salary Bands & Allowances Formulation

Designing minimum, midpoint, and maximum bands for each grade. Detailing standard allowances (housing, transport, and variables) matching Saudi market trends.

4

Policy Development & Committee Alignment

Drafting formal compensation and benefits manuals, mapping approval authorities, and outlining the charter of the Nomination and Remuneration Committee (NRC).

Need a Compliant, Competitive Salary Structure?

At Next Dimension, we streamline your compensation structure and grading systems to match regulatory guidelines and attract top talent.