A recent piece in the Harvard Business Review discussed how a strong Board can reduce "Corporate Misbehaviour". A number of takeaways for Executive Search firms - but I found the relationship between Stock Options and Fraud to be particularly interesting!
Moreover, financial incentives matter. The Boston Consulting Group found that the CEOs of public companies recently found guilty of fraud had received stock options in the years before the fraud occurred that were worth eight times what CEOs of compliant firms were granted. After Wells Fargo Bank employees opened millions of sham accounts in response to misaligned incentives, Wells Fargo put in place a new incentive program in January 2017 that focused on customer service rather than selling products.