Today’s Chief Compliance Officer
Hiring Trends & Evolution of Roles:
- Today’s compliance executives are required to have a broader skill set and leadership capabilities.
- Skills include transformational experience; keen business acumen; strategic vision; tactical approach; and competencies across risk, audit, operations, and technology.
- As the Compliance function has moved out of the back office, Chief Compliance Officers must have the presence and gravitas to actively engage with business leaders and regulators.
- In the current environment, Chief Compliance Officers are tasked with balancing ongoing responsibilities with new regulatory demands creating internal resource and cost pressures.
- Increased regulatory demands have resulted in the reorganization, and increased segmentation of the compliance function, creating compliance roles that require specialized expertise with a global understanding of financial trends.
- The increased regulation and segmentation of the compliance function has been the catalyst for new job growth in Financial Services.
Trends in Compensation:
- The structure of compensation is a combination of base and discretionary bonus.
- Total compensation packages have been trending up in recent years as the compliance function has gained visibility and been technically redefined.
- On average, banking organizations are deferring a larger portion of bonus than mutual fund companies. Some organizations are pushing as much as 100% over four years versus a fully funded bonus pool with share grants consistent with the four-year average.
- Chief Compliance Officers today must have the endorsement of the Board.
- Candidates are looking for a position which is increasingly independent of Legal.
- As Compliance Officers strive to create a holistic and uniform program, they want to work as a partner with the business.
- Candidates are looking for organizations whose compensation is more heavily weighted to cash than long-term incentives.
- The bonus formula has become increasingly important. Considerations include whether the bonus is derived strictly off of the share price and allocated uniformly or whether there are metrics that factor in individual, group, and departmental performance.