Report on Corporate Governance 
                                      
                                      
                                      
                              Final Report 
                                      
                                      
                                      
                                      
                                      
                                      
                                                  
                                      
                                      
                                      
              The Growth and Emerging Markets Committee  
                                   OF THE 
            INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS 
          
         FR10/16                                    OCTOBER 2016 
          
          
          
                                      
                           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
                 Copies of publications are available from: 
         The International Organization of Securities Commissions website www.iosco.org 
       © International Organization of Securities Commissions 2016.  All rights reserved.  Brief 
            excerpts may be reproduced or translated provided the source is stated. 
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                                                                       Contents 
                                                                               
                                                                               
                                                                               
                   Chapter                                                                                                        Page 
                                                                                                                                       
                   I        Executive Summary                                                                                        1 
                                                                                                                                       
                   II       Introduction                                                                                             4 
                                                                                                                                       
                   III      Board Composition                                                                                       12 
                            A.        Relevant OECD Principles                                                                      12 
                            B.        Analysis of survey results                                                                    14 
                            b.1.      Director independence                                                                         14 
                            b.2.      Diversity                                                                                     19 
                            b.3.      Time commitment                                                                               22 
                            b.4.      Nomination subcommittee                                                                       26 
                            b.5.      Board Evaluation                                                                              28 
                            C.        Key takeaways                                                                                 30 
                                                                                                                                       
                   IV       Remuneration and Incentive Structures                                                                   32 
                            A.        Relevant OECD Principles                                                                      33 
                            B.        Analysis of survey results                                                                    34 
                            b.1.      Role of the different governance structures                                                   35 
                            b.2.      Advanced approval by shareholders meeting                                                     36 
                            b.3.      Remuneration subcommittee                                                                     37 
                            b.4.      Disclosure of policies and individual compensation                                            39 
                            b.5.      Balance between variable and fixed remuneration                                               42 
                            b.6.      Regulatory requirement – pay for performance                                                  43 
                            C.        Key takeaways                                                                                 44 
                                                                                                                                       
                   V        Risk Management and Internal Controls                                                                   46 
                            A.        Relevant OECD Principles                                                                      48 
                            a.1.      Disclosure and transparency                                                                   48 
                            a.2.      Key functions of the board                                                                    49 
                            B.        Analysis of survey results                                                                    50 
                            b.1.      Disclosure requirements                                                                       50 
                            b.1.1.  Risk factors                                                                                    51 
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                        b.1.1.1. Cyber, sustainability and social risks                                         52 
                        b.1.2.  Policies and systems                                                            56 
                        b.2.    Leading role of the board                                                       60 
                        b.3.    Subcommittees                                                                   63 
                        b.4.    External auditors                                                               65 
                        C.      Key takeaways                                                                   67 
                                                                                                                  
                VI      Conclusion                                                                              70 
                                                                                                                  
                        Acknowledgements                                                                        72 
                                                                                                                  
                        Listing of Respondents                                                                  73 
                 
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