FSB Round Table on Compensation Tools to Address Misconduct in Banks
This note provides a summary of discussion at a round table hosted by the FSB in May 2016 to share experiences and lessons on the use of compensation tools to address misconduct in banks. The round table considered the processes for governing and applying compensation and related risk management tools to help better identify, mitigate and reduce misconduct risk. Participants also explored challenges related to the use of compensation tools, including differences in their application among jurisdictions, and discussed the relative importance of compensation tools compared to other approaches to handling misconduct.
This round table was organised by the FSB Compensation Monitoring Contact Group (CMCG) as part of the FSB’s wider work plan to reduce misconduct in banks. A further update on the FSB’s work on reducing misconduct will be provided in a progress report to be published by the time of the G20 Leaders’ Summit in Hangzhou in September.
The FSB welcomes any feedback on topics discussed at the round table and summarised in this note. Comments should be sent to [email protected] by 21 August 2016.