In March 2010, the Financial Stability Board (“FSB”) published a report following a thematic peer review on compensation which recommended that the Basel Committee on Banking Supervision should develop for consultation, by the end of October 2010, a report on the range of methodologies for risk and performance alignment of compensation schemes and their effectiveness in light of experience to date. This Report was prepared in response to the FSB’s recommendation and is primarily technical in nature and seeks to enhance banks’ and supervisors’ understanding of risk-adjusted remuneration. The complementary components of a sound methodology for adjusting remuneration (design of the remuneration scheme, performance measurement, ex ante and ex post adjustments, deferral, award process) are analysed separately in the Report to better link the identified technical and detailed issues with practices. The Report concluded that remuneration practices and methodologies continue to evolve and although a substantial degree of diversity exists in current practices, it identified some common trends. The Report presented some initial supervisory considerations that correspond to issues that may hamper the effectiveness of a remuneration scheme.