Compliance Hiring and Compensation Practices

The National Society of Compliance Professionals (NSCP) released their 2010 Census information detailing demographic and planning information for compliance departments. The report included informaton on the number of compliance professionals in the department, experience level, level of education and salary information for the member firms that completed the Census. Below are compliance industry trends gleaned from the data and insights into anticipated hiring practices based on the report.

Compliance and CCO Salary
Salaries for compliance professionals and Chief Compliance Officers (CCOs) increase exponentially over time, with education having minimal impact on salary unless a JD is held. Salary potential increases through job moves and levels off after 6 years.

• Compliance staff with 3-5 years experience as a majority make annually $75k-99,999.
• CCOs with 3-5 years experience make mostly $100-149,999k
• After 20+ years, salary increases to$150k-199,999.
• Education has minimal impact on salary unless a JD is held.
• High school ($75k-150k), BA ($100k-150k), and JD ($150k-$199,999).
• The Eastern Region is more likely to be making higher incomes ($100k-$149,999 and $150-$199,999 and up). Median incomes are then found in the Midwest and West ($75k-99,999 and $100k-149,999 and up). The South income is less than all categories ($100k-149,999 and $75k-99,999 and down).

Hiring Compliance Personnel

• 30% of firms are hiring in compliance departments, mostly larger established firms and some start-ups
• Dual Registrants and Private Equity firms are hiring in compliance more than IAs, BDs, HFs alone.
• Compliance Software is the largest area for planned compliance hiring (67%)

SEC/FINRA Examinations

• Most firms questioned are examined annually or ever 1-2 years,
• Of firms with 1-2 compliance staff, those with 6-10 reps were examined most frequently.

Regional Structure

The management and reporting structure for the compliance department differs based on region.

• CCOs are mostly on the East Coast (38%) where they report mostly to the legal department.
• If not on the East Coast, the Midwest is next most popular at (29%) and report to In House Counsel
• In the South and on the West Coast, the majority of CCOs report to the President

Data Sourced: NSCP 2010 Census Survey