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.