CCOs See Slight Gain in 2019 Total Compensation: The E&C Pulse - December 11, 2019

December 11, 2019 Ben DiPietro
 

Dec. 11, 2019

CCOs See Slight Gain in 2019 Total Compensation 

 

The average compensation for chief compliance officers working outside of the healthcare sector in 2019 was $185,794, up about 4% from the average compensation of $177,752 when the Society of Corporate Compliance and Ethics last conducted its survey in 2017.

 

As always, there are factors that drive compensation higher. These include the amount of risk being managed; the number of people managed by the CCO; budget size; number of employees under the CCO’s responsibility; and years of experience in compliance.

 

The biggest driver for compensation is whether the CCO works for a publicly traded company; those who do have an average total compensation of $312,239--more than double the $154,846 average compensation for CCOs at privately held firms. 

 

CCOs working in what SCCE called the Pacific region made more than colleagues in any other part of the U.S., bringing in average compensation of $247,070, ahead of the $225,002 brought in by those in the East North Central region.

 

Certifications help drive compensation, as well, with those holding a Certified Information Privacy Professional certification making on average $253,289. Those holding the Certified Compliance and Ethics Professional-International certification bring in $240,424. CCOs with no certifications had average compensation of $141,359.

 

Some interesting information not related to salary included in the survey found:

  • 40% of the CCOs whose responses were used in the survey say they manage 75% or more of their organization’s total legal and regulatory risk;
  • 33% manage a compliance budget of less than $100,000 annually, while 40% oversee a budget of $1 million or more;
  • Just under half the respondents work in companies with 1,000 or fewer employees, while 25% are in organizations of 7,500 or more;
  • One in five CCOs are responsible for 5,000 or more employees, the same percentage that is responsible for 100 or fewer employees;
  • About 20% of CCOs are in companies with revenue of $15 million or less, while 32% are in businesses with $1 billion or more in revenue;
  • Two-thirds deal with compliance in one country; 14% handle compliance in 10 countries or more;
  • Nearly 60% of CCOs have managed their program for five years or less; 15% have been in their role for more than 10 years; and
  • 60% of the CCOs in the survey are women; the median age of CCOs is 48.

The survey is based on responses from 479 chief compliance officers who didn’t work in the healthcare sector, and are responsible for at least 26% of an organization’s legal and regulatory risk.

 

SCCE also looked at compensation for compliance staff members, and reported gains among compliance vice presidents, compliance directors, and compliance specialists, but a decline for compliance managers. Compensation ranged from $238,370 for vice presidents, to $81,709 for compliance specialists. As with CCOs, staff at organizations with more people, responsibilities, and bigger budgets make more than their counterparts.

 

SCCE emphasizes the information in the survey should be used as a guideline, and not as an absolute standard. “Even organizations that are similar on some characteristics, such as location, size, industry, etc., will differ in other ways, making it difficult to draw exact comparisons,” the organization said. 

 

“In the end, results in this report that are different from one’s own experience are most likely an indication that other factors are at play.”

 

                                                                                                            BEN DIPIETRO
                                                                                                       @BENDIPIETRO1
                                                                                       BEN.DIPIETRO@LRN.COM

 

 

FROM THE LRN BLOG

An effective code of conduct is more than a list of rules and regulations; it inspires principled performance, guides employees in how to live the organization’s values, and enables them to be aware of risks and make ethical decisions.

 

READ THE BLOG→

 

PRINCIPLED PODCAST

This week's episode of Principled features Ana-Paola Capaldo de Aoun, director of ethics and compliance for Tech Data Corp., talking with LRN’s Dr. Marsha Ershaghi Hames about 

creating programs that resonate across cultures and locations.

 

LISTEN AND SUBSCRIBE→

 

MIND NUMBERS

84%/55%/52%

Edelman Trust Barometer queried 600 institutional investors--84% said "maximizing shareholder returns can no longer be the primary goal of the corporation;" 55% said board diversity "has a significantly positive impact on trust;" and 52% said they're more likely to trust a company that links executive compensation to ESG goals.

 

THE ELEVEN

 

Swedish telecom firm Ericsson will pay $1.2 billion to settle bribery charges with the U.S. Department of Justice, DW reports.

 

The head of human resources at LinkedIn resigned over compliance issues, Benefits News reports.

 

After years of prodding, Uber issued a report on the safety of its rides, and reported nearly 6,000 sexual assaults in 2017 and 2018, Axios reports. 

 

People are mistaken when they think of ethics as "fuzzy," something disconnected from truth and facts and rigorous inquiry, ethicist Reid Blackman writes.

 

A former KPMG director was banned for life by the SEC for leaking confidential information from the agency about bank audit examinations, Economia reports. 

 

AARP's Ellen Hunt writes about how to audit AI for racial bias. Coming soon: artificial intelligence compliance officer, says Planet Compliance.

 

Days before a presidential election, two former prime ministers of Algeria were convicted in a landmark corruption trial, Associated Press reports. 

 

More companies are choosing to correct accounting problems by quietly updating their numbers rather than reissuing its financial statements, WSJ reports. Also from WSJ: There are limits to the goodwill a company can receive for having a strong compliance program from the DOJ when it is under investigation.

 

Corporate Compliance Insights shares tips to mitigate bias in risk assessments.

 

Current Affairs explores the idea of "just doing my job," when that job means doing something bad.

 

Eight experts share their thoughts on the top corporate sustainability issues.

 

THE QUOTE

"There are values of humanity, culture, beauty, community that may require deviations from the cold logic of market theory.”

- Anthony Lewis, journalist

 

THE NUDGE

The Society of Human Resource Management produced a three-video series in which SHRM Chief Executive Johnny Taylor speaks with the CEOs of Humana, IBM, and MasterCard about the importance of building cultures of trust and transparency, and of giving employees a sense of mission.

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