CCOs grapple with more as their pay tries to keep pace (IGNITES)

According to a survey on Chief Compliance Officer compensation, the pay for CCO positions at funds and money managers rose to their highest levels during the previous year. However, the average annual compensation of slightly more than $500,000 for CCOs needs to be balanced with pay decreases in the years before due to market conditions, according to Management Practice, Inc., the firm conducting the survey. Amy Lynch, FrontLine’s Founder and President, comments that an industry trend has been to split compliance costs between funds and managers, with some CCOs receiving compensation at least in part from funds. A CCO’s compensation was also determined by their firm’s assets under management, location, and their age and experience level, with Ms. Lynch noting that more CCOs are now older, with an average age of 51 years cited by the survey’s results.  Additionally, with a higher average compensation, more and more is being asked of CCOs to handle increased SEC rules and regulatory oversight, management of technology and comprehension of market risks. See IGNITES (subscription required), “CCO Comp Climbs 8.1% to New High in 2023”