Compensation reform implementation and convergence dynamics: evidence from FSB monitoring Data

This paper examines the cross-country implementation of Financial Stability Board (FSB) compensation reforms, a central but unevenly adopted pillar of post-crisis regulation whose drivers remain little understood. Using FSB monitoring data, we construct a granular implementation ratio for 24 jurisdictions over 2008–2024 and estimate fixed-effects, first-difference, lagged, and convergence specifications. Economic development exhibits a positive association with implementation in baseline and several robustness specifications, although this relationship weakens once common international time effects are introduced. Conventional governance indicators explain little within-country variation, and common international dynamics dominate.