Credicorp’s institutional guidelines, which govern all of our subsidiaries, comply with high standards for corporate governance. We base our organizational culture on principles of integrity, respect and transparency. These ideals are shared by all of our employees and are the basis for the trust we have secured from our shareholders and other stakeholders.
Our good corporate governance practices, which are present in our vision, mission and institutional policies and rules, seek to generate sustainable growth and create value for our shareholders and other stakeholders. Thanks to our adherence to these practices, Credicorp leads the financial system in Peru and has achieved sustained growth in the countries in which it operates.
Credicorp has established six Board Committees to maintain the standards that guide our operations:
- Executive Committee, which is responsible for: responding to management’s queries on business or operations that require guidance from the Board; making urgent decisions that correspond to the Board by submitting these decisions for ratification at its next session; and making decisions on other specific matters that the Board has delegated to it.
- Audit Committee, which is in charge of: supervising, monitoring and independently reviewing the processes to present financial and accounting information; our internal control procedures; the audits of financial statements and the integrity of financial statements; and reviewing cases of fraud and complaints presented by employees or third parties. Additionally, the Audit Committee is responsible for assisting in the recommendation of independent external auditors to be appointed at the Annual General Shareholders’ Meeting and reviewing the scope and results of internal and external audits. At least one of the members of our Audit Committee is a financial expert.
- Risk Committee, whose objective is to: establish, periodically assess, approve, and duly inform the Board of Directors the guidelines and policies for comprehensive risk management; identify and establish autonomies for assuming risk; approve all strategic initiatives for new businesses or products that can alter our risk profile; and approve our organization and governance structures and mechanisms, which includes supervising the different Risk Management Committees across Credicorp.
- Corporate Governance Committee, which focuses on: proposing good corporate governance practices to the Board; assessing the adequacy of the corporate governance policies we adopt; and deciding and/or resolving cases of either serious misconduct in compliance with corporate governance policies or of conflicts of interest or ethics conflicts of Directors or senior executives.
- Compensation Committee, which is responsible for: establishing the remuneration policy for Credicorp and its subsidiaries; approving proposals to change the remuneration policies; approving the remuneration and compensation of the principal executives and managers of Credicorp and its subsidiaries; and recommending to the Board of Directors, for submission to the General Shareholders’ Meeting, basic compensation guidelines and levels of compensation for the members of the board of directors and committees of Credicorp and its subsidiaries.
- Nomination Committee, which: proposes to the Board of Directors the selection criteria for director nominees; selects and recommends nominees to the Board of Directors and to the shareholders at the Shareholders’ Annual General Meeting; and recommends nominees to fill vacancies in the Board of Directors.
- Investment Committee, which approves the investment theses that will dictate the processes under which Credicorp detects and analyses projects for a potential investment, approves the non-binding offers or indicative tenders and approves due diligences budgets.
Given that we are listed on the New York Stock Exchange (NYSE), we also adhere to applicable U.S. corporate governance requirements, such as those under the Sarbanes-Oxley Act. This law, which has been in effect in the United States since July 2002, requires companies subject to the law to comply with certain international standards of good corporate governance practices.