Advisory firm managing partner links slowing of salary increases to tighter budgets, other factors
BarkerGilmore LLC, an executive search and advisory firm focusing on the legal and compliance sectors, has published its 2024 Chief Compliance Officer Compensation Report.
The report provides a detailed analysis of chief compliance officer (CCO) compensation trends across various types of organizations, including in the public, private, and non-profit sectors. Findings in the report include slowing compensation growth, persistent gender pay disparities, and the importance of a JD degree in securing higher pay.
The report revealed that median base salary and bonus compensation for CCOs increased in public companies and non-profit organizations but saw a slight decline in private companies, according to BarkerGilmore’s news release.
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Specifically, public companies saw a seven-percent increase, with compensation rising to $419,000 from $391,262. Private companies experienced a one-percent decrease, with compensation dropping to $299,541 from $302,000. Non-profit organizations reported a 12-percent increase, with compensation now at $250,000 from $223,810.
Despite these increases, the rate of salary growth across industries has generally slowed, the news release noted. The financial services sector maintained a five-percent increase, consistent with the previous year. However, other industries – such as healthcare/life sciences, industrial and manufacturing, and technology – experienced declines in salary increase rates.
“We attribute the slowing of salary increases to various factors, including tighter post-COVID corporate hiring budgets and economic and political uncertainty,” said John Gilmore, BarkerGilmore’s managing partner, in the news release.
Gender gap remains in some sectors
The report also highlighted gender pay disparities in the public and private sectors. Male CCOs in public companies earned 29 percent more than their female counterparts. Meanwhile, in private companies, men earned nine percent more.
This trend reversed among non-profit organizations, where female CCOs earned nine percent more than their male peers, the news release said.
The report found that most CCOs expressed low interest in seeking new positions solely for the purpose of getting a higher compensation. This trend spanned all sectors, with 65 percent of CCOs in public companies, 63 percent in private companies, and 60 percent in non-profit organizations reporting low or very low interest in compensation-motivated job searches.
The report then explored the impact of holding a JD degree on CCO compensation. In public companies, the difference in pay is substantial, namely a differential of $295,000, the news release noted. Meanwhile, JD holders earn $61,000 more in private companies and $92,000 more in non-profit organizations.
On the matter of reporting structures, the report revealed that CCOs in non-profit organizations were more likely to report directly to the chief executive officer at 58 percent. Thirty percent of CCOs in public companies and 43 percent in private companies were more likely to do the same.
“While our executive search business experienced a softening of demand for compliance professionals in 2023, we have witnessed a robust turnaround in 2024 as positions opened due to internal promotions, resignations, and retirements,” said Gilmore in the news release. “The good news is positions at the top cannot go unfilled for long.”
Gilmore added, “As the compliance discipline continues to grow in importance as a risk management discipline, we expect CCO compensation increases to continue in the year ahead.”
