FSB compensation progress report shows good progress in implementing principles and standards with further work on compensation tools to address misconduct planned.
This letter from the FSB Chair to the G20 Leaders in advance of the Antalya Summit reports on progress on the FSB’s work and highlights issues that demand the attention of Leaders.
The FSB and the IAIS held a workshop in May 2015 with senior executives from internationally active insurance companies on the governance of compensation frameworks and alignment of compensation with prudent risk-taking.
The FSB held its third workshop with senior executives from global systemically important banks on implementation of the FSB Principles and Standards for Sound Compensation Practices in London on 14 April 2015.
This summary reflects the main points raised in the discussion at the second workshop on compensation practice organised by the FSB in Paris on 1 April 2014.
This report focuses on remaining gaps and impediments to full implementation of the FSB Principles and Standards (P&S) and describes some of the key challenges and evolving practices in this area.
The workshop focused on three main areas: alignment of compensation with ex-ante risk taking; alignment of compensation with performance; and the identification of material risk takers.