Abstract
The FSB organised in Paris on 1 April 2014 the second workshop on compensation practices to share experiences and lessons on the implementation of the FSB Principles and Standards for Sound Compensation Practices by financial institutions. The workshop focused on three main areas: the identification and treatment of material risk takers; the use of malus and clawback clauses as part of the alignment of compensation with risk taking and performance; and governance frameworks, including the role of compensation structures in supporting a sound risk and compliance culture at financial institutions. Officials from the FSB Compensation Monitoring Contact Group and nineteen senior executives mainly responsible for remuneration, primarily from global systemically important banks, participated in the workshop.