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FSB implementation standards to align compensation with prudent risk-taking
Financial Stability Board implementation standards set out detailed specific proposals on compensation governance, structure and disclosure to strengthen adherence to the FSB Principles for Sound Compensation Practices. Standards focus on areas in which especially rapid progress is needed, including: i) independent and effective board oversight of compensation policies and practices; ii) linkages of the total variable compensation pool to firm's overall performance and need to maintain sound capital base; iii) compensation structure and risk alignment, including deferral, vesting and clawback arrangements; iv) limitations on guaranteed bonuses; v) enhanced public disclosure and transparency of compensation; and vi) enhanced supervisory oversight of compensation, including corrective measures if necessary.
Publisher:
Global Standard-Setting Bodies
Release date:
Sep 2009
Type:
Implementation
Parent:
FSB Principles for Sound Compensation Practices
Peer:
Guidance on FSB Principles and Standards on Sound Compensation Practices
Topics:
Corporate governance
Sectors:
Banking, Insurance, Securities
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