CCO Compensation: High Pay Amidst a Stagnant Job Market
A recent survey reveals that Chief Compliance Officers (CCOs) are earning substantial compensation, yet the job market for compliance professionals is experiencing a significant slowdown. This creates a paradoxical situation where CCOs are staying put in their roles, leading to fewer opportunities for those seeking new positions and driving up compensation for the few highly sought-after candidates. Internal audit and assurance professionals should note these trends as they impact talent acquisition, retention strategies, and the overall compensation landscape within governance, risk, and compliance (GRC) functions.
The Paradox of CCO Compensation and Job Market Stagnation
A recent survey by Barker Gilmore, a prominent compliance officer recruiting firm, highlights a curious dichotomy in the Chief Compliance Officer (CCO) landscape. While CCOs are generally well-compensated, the overall job market for compliance professionals is experiencing a significant slowdown. A striking 62% of surveyed CCOs reported a "low or very low" likelihood of changing employers soon, a stark contrast to two years prior when half of respondents anticipated seeking new opportunities. This shift suggests a market where CCOs are clinging to their current roles, not necessarily due to job satisfaction, but rather a challenging external job market characterized by fewer openings and increased competition.
Implications for the Compliance Talent Landscape
This stagnant job market has several critical implications. For compliance professionals actively seeking new roles, opportunities are scarcer, leading to heightened competition and reduced bargaining power. Conversely, companies in need of a new CCO often find themselves in a "highly constrained candidate market." Since many currently employed CCOs are unwilling to move, hiring organizations are compelled to offer more attractive compensation packages to entice them. This dynamic contributes to the paradoxical situation of rising CCO compensation alongside a growing pool of unemployed compliance professionals, as companies may be hesitant to hire those who have been laid off.
Compensation Trends Across Industries and Demographics
Despite the challenging job market, CCO compensation remains robust, with significant variations based on company type, revenue, and industry. The survey, which analyzed data from 250 CCOs, indicates that compensation at larger private companies can even surpass that of their public counterparts. Long-term incentive pay is also on the rise, further incentivizing CCOs to remain in their current positions. Industry-wise, life sciences and consumer sectors reported the highest median total compensation for CCOs, while non-profits predictably had the lowest. Interestingly, the survey also revealed that women CCOs reported higher total compensation and base salaries than their male counterparts, a positive sign for gender equity in the field.
Read more
