Significant changes in regulatory and supervisory frameworks to implement the FSF Principles for Sound Compensation Practices and their Implementation Standards have taken place across the FSB membership over the past year and are expected to continue into 2010 and beyond. Notwithstanding different starting points in terms of pre-existing national frameworks addressing compensation issues and the degree of misalignment with prudent risk-taking, there has been, on the whole, material progress and a movement towards convergence across jurisdictions. However, it is relatively early in the process; some key issues are yet to be resolved and effective implementation is far from complete. There are differences in the approach to and pace of implementation and a sustained and cooperative effort will be required from supervisors and financial institutions to implement fully the Principles and Standards by the end of 2010. Greater progress has been achieved in the areas of governance, establishing supervisory oversight and promoting disclosure of compensation. Further work needs to be done to raise standards of risk adjustment of pay structures across the industry. Hence, this review recommends additional measures in areas where they are necessary to support the emergence of sound practice and further convergence.