Corporate governance and corporate finance

Board Practices: Incentives and Governing Risks



Date of publication
2 August 2011


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This publication examines how effectively boards manage to align executive and board remuneration with the longer term interests of their companies.  This is a major and ongoing issue in many companies and one of the key failures highlighted by the financial crisis.  Aligning incentives seems to be far more problematic in companies and jurisdictions with a dispersed shareholding structure since, where dominant or controlling shareholders exist, they seem to act as a moderating force on remuneration outcomes.


This report presents the results of a peer review based on the G20/OECD Principles of Corporate Governance. It focuses on board practices related to setting incentives and governing risks in 29 countries and includes in-depth reviews of Brazil, Japan, Portugal, Sweden and the United Kingdom.



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