A new report shows that chief compliance officers and other compliance professionals got a nice bump in pay in 2022, as demand for compliance talent hit record highs. According to the report, by executive search firm BarkerGilmore, chief compliance officers received and average raise in base pay of 12 percent and the average annual base salary increase for all compliance positions across industries was 10 percent.
“The demand for compliance professionals, especially Chief Compliance Officers, is as strong as it has ever been,” says BarkerGilmore Managing Partner John Gilmore. “The need for business-minded leaders, an environment of increasing regulations, and the heightened awareness of the risks associated with lack of compliance have created a competitive landscape for compliance professionals.”
According to the report, the average total compensation for all CCOs was $346,000, with males earning slightly more than females by just $2,000. Interestingly, female CCOs earn slightly more on average in base pay—$250,000 compared to $245,000 for men—while males earn higher bonuses—$86,000 for men versus $70,000 for women.
Compliance Talent In High Demand
“As the government increases regulations and expectations, companies have responded by scaling up their compliance teams,” the report’s authors write. “During a year when their in-house counsel counterparts saw an overall compensation decrease of 3 percent, overall compliance compensation increased 8 percent. The demand for talent has allowed the most talented and experienced compliance professionals to seek competitive compensation packages.”
The average pay for all compliance officers was $258,000, with women out-earning men by an average of $6,000. Not surprisingly, public-company compliance officers far out-earned their private-company counterparts, with the average public-company compliance professional taking home $347,000 in annual total compensation, compared to $242,000 for private company compliance officers.
Energy Sector CCO’s Fair Best
Compliance professionals at publicly traded energy and public utility companies earned the most, with CCO’s in those industries earning an average total compensation of $638,000 and other compliance officers earning an average of $572,000. Those in the financial services sector had the lowest total compensation packages. CCOs at public financial firms earned an average total compensation of $387,000 and other compliance professionals at public financial firms earned average total pay of $261,000.
Other key findings of the report include:
1) Compensation Changes by Position: The average annual base salary increase for all positions across industries was 10 percent. Total compensation increased by 8 percent. CCO’s total compensation rose 10 percent, with a significant increase in long-term incentive pay (14 percent) and a 12 percent increase in base compensation. Total compensation for Compliance Officers and Counsel increased by 6 percent, with the only change occurring in base salary.
2) Chief Compliance Officers: On average, CCOs received 100 percent of their target bonuses in 2022. Chief Compliance Officers with a J.D. have a significantly higher salary than their non-J.D. counterparts. Total compensation for CCOs with a J.D. was 69 percent higher than those without a J.D. The difference in compensation was observed at all levels—base, bonus, and LTI. Chief Compliance Officers with experience working at Am 100 law firms earn significantly higher total compensation than those without law firm experience and those that worked at small or boutique law firms. Total compensation packages for female Chief Compliance Officers were 1 percent lower than their male counterparts. Thirty-seven percent of Chief Compliance Officers expect to make a compensation-related job move within the next year, down 3 percent from last year.
3) Compliance Officers: On average, Compliance Officers received 100 percent of their target bonuses in 2022. The overall gap in total compensation between Compliance Officers with J.D.s and without J.D.s is 15 percent; however, the gap widens significantly based on the law school ranking of the Compliance Officer. Compliance Officers who graduated from a Top 50 law school made 56 percent more in total compensation than Compliance Officers without a J.D. Similarly, Compliance Officers with law firm experience have increased total compensation by 25 percent compared to those without law firm experience. The gap grows to 62 percent if that law firm experience was with an Am Top 50 firm. Female Compliance Officers made 2 percent more in total compensation than their male counterparts. Forty-three percent of Compliance Officers expect to make a compensation-motivated job move in the next year.
4) Direct Reports: The number of direct reports a Chief Compliance Officer or Compliance Officer has correlates with their total compensation. Chief Compliance Officers with 20 or more reports made 133 percent more than those without reports ($665,000 compared to $285,000). Compliance Officers with 20 or more direct reports made 97 percent more in total compensation than those without reports ($463,000 compared to $235,000).
5) Sign-on Bonuses: Twenty-five percent of Chief Compliance Officers in new positions received sign-on bonuses. The median value of the sign-on bonus was $40,000. Similarly, 25 percent of Compliance Officers in new positions received sign-on bonuses. The median value of Compliance Officer sign-on bonus was $17,000.
The data was collected from a random sample of compliance professionals throughout the United States through an online survey administered in March 2023. More than 500 compliance professionals of various levels of seniority within different-sized public and private organizations responded to the survey. 
Joseph McCafferty is editor & publisher of Compliance Chief 360°