On 9 March 2018, the Financial Stability Board (FSB) published its supplementary guidance to its Principles and Standards on Sound Compensation Practices (P&S). The FSB states that the supplementary guidance is consistent with the P&S and provides guidance on better practice for addressing misconduct risk without adding any new or additional principles or standards. It consists of recommendations for firms and supervisors and is structured in three parts: (i) governance of compensation and misconduct risk; (ii) effective alignment of compensation with misconduct risk; and (iii) supervision of compensation and misconduct risk.