The Financial Stability Board (FSB) has published the second progress report on the implementation of the FSB Principles for Sound Compensation Practices and their Implementations Standards by FSB jurisdictions. The report finds that good progress has been made though more work needs to be done by national authorities and firms to ensure implementation of the Principles is effectively leading to more prudent risk-taking behaviour. The report also addresses key challenges and evolving practices in ex ante risk adjustment, alignment of compensation with performance and identification of material risk-takers.