The proportion of bonuses for financial sector staff that must be deferred varies significantly from country to country, with differing local regulatory regimes making it difficult for banks to adopt group-wide compensation policies, according to the Financial Stability Board.

The FSB in 2009 devised principles for sound compensation practices at large financial institutions in the wake of a growing acceptance that the bonus culture had helped create excessive risk-taking that deepened the financial crisis. In its latest progress report on the implementation of the standards, published today, it said that all of its member jurisdictions have fully, or almost fully, implemented the standards for their banking industries.