Chief compliance officers who are involved in 76 percent to 100 percent of a company’s legal and regulatory affairs earn lower salaries than those who had up to 50 percent involvement.
It seems as though working harder doesn’t earn you a higher salary if you are a chief compliance officer (CCO).
A recent survey by the Society of Corporate Compliance and Ethics (SCCE) reports that compliance officers who are involved in 76 percent to 100 percent of a company’s legal and regulatory affairs earned less than those who had up to 50 percent involvement.
‘This is due to the fact chief compliance officers that reported being involved in 76 percent to 100 percent of the company’s legal and regulatory risk areas are more likely to work for smaller organizations, on average, than those that reported 26 percent to 75 percent involvement,’ the survey said. Smaller companies on average can’t afford higher salaries, but do require the chief compliance officer to handle just as much work. According to the 2012 Cross Industry Chief Compliance Officers Salary Survey, CCOs at larger companies that had 26 percent to 50 percent involvement in a company’s legal and regulatory affairs earned the highest average salary of $168,524 annually. CCOs involved with 76 percent to 100 percent of their company’s legal and regulatory matters earned the lowest average salary of $152,219. Over 300 compliance professionals were polled during the fourth quarter of 2012 for this report.
‘We focused this survey on people who manage multiple risk areas and all elements of a compliance program,’ says Roy Snell, CEO of the Minneapolis-based organization. ‘This survey is more accurate than other compliance professional’s surveys. In fact, most surveys done to date include individuals who have compliance in their title but do not actively manage a robust compliance program that focuses on risk areas, as well. As a result, those surveys can be easily diluted.’
Additionally, the survey said that compliance officers in the biotechnical and pharmaceutical industries reaped the highest average salary of $226,950, followed by $201,000 for those involved in manufacturing and production industries. The lowest salaries were found among CCOs working in government/policy at $109,478.
As an avalanche of responsibilities continues to mount on the shoulders of compliance professionals, the question of how large their compensation should be may well become a hotly debated subject. The role of the chief compliance officer is rapidly evolving in the wake of heightened regulations, and the demand for these professionals continues to grow. One of the paramount responsibilities and challenges that CCOs often encounter is building comprehensive compliance programs that can fulfill existing requirements and can withstand the impact of an ever-changing regulatory landscape. As companies build more efficient governance, risk and compliance models, chief compliance officers are sure to be more actively involved with the implementation of these new programs and their value will no doubt continue to grow.
