The government has tightened several business regulations in an effort to enforce workforce laws and minimize corporate scandals. Many companies, especially banks, felt the consequences with costly fines and penalties. That’s when the compliance field began booming to help protect businesses from the financial fallout of poor practices. Chief Compliance Officers (CCOs) stand at the forefront of the field as senior executives responsible for ensuring organizations are compliant with internal and external regulations. A company’s CCO plays a vital role in developing and implementing procedures for facilitating compliance across all departments. The Chief Compliance Officer sets company-wide policies to guarantee that operations are running smoothly and based on industry standards.
Salary
According to the Bureau of Labor Statistics, the 246,240 chief executives, including CCOs, employed in the United States bring home an average yearly salary of $180,700. This is a mean hourly wage of $86.88. Chief Compliance Officers employed by banks earn slightly more at $180,970. The highest paid CCOs work for securities and commodity brokerages with a mean salary of $238,740 annually.
Beginning Salary
When just advancing into the Chief Compliance Officer role, executives can expect to make a decent yearly salary around $72,750. However, it’s important to note that CCOs with years of experience can easily make upwards of $216,100 each year. Many companies will provide large bonuses to their CCO, which can equal up to 100 percent of their base salary.
Key Responsibilities
Chief Compliance Officers hold a significant amount of responsibility in performing company-wide inspections to make certain that laws are being followed. CCOs oversee the creation of all internal policies designed to catch and prevent any improper employee conduct before violations can be charged. Typical daily duties can involve:
- monitoring the compliance program
- reporting to senior executives
- researching new legal regulations
- collaborating on employee training programs
- conducting internal compliance reviews
- punishing policy infringements
The Chief Compliance Officer is also the principal point of contact during government investigations and audits.
Necessary Skills
Before being promoted to Chief Compliance Officer, you’ll need to build the strong analytical abilities to apply complex, ever-changing legal regulations in the business landscape. CCOs must have good organizational details with attention to detail to notice whenever operations are failing to adhere to strict standards. Having the courage and integrity to immediately alert senior managers when red flags arise is crucial. Chief Compliance Officers must possess the strategic business acumen to proactively resolve internal issues. Leadership skills help CCOs set the right compliance tone for their employees. Being a skilled communicator is also a must for the Chief Compliance Officer. They must clearly articulate compliance risks on the executive board.
Degree and Education Requirements
Advancing as a Chief Compliance Officer will require that you have at least a four-year bachelor’s degree from an accredited business school. Most aspiring CCOs will pursue their undergraduate major in:
- finance
- business administration
- economics
- management
- another closely related field
Those interested in working for a hospital or clinic could benefit from studying healthcare administration. Although it’s not necessarily mandated, the majority of Chief Compliance Officers go on to attend graduate school. Earning a Master of Science in Finance (MSF) or Master of Business Administration (MBA) will be valuable in expediting the promotion process. Some CCOs will pursue in-depth legal training in law school for facilitating business compliance.
Pros and Cons of the Position
Of course, the most obvious benefit from being a Chief Compliance Officer is the lucrative paycheck. CCOs usually bring home sizable six-figure salaries nearing the quarter million mark. Also plentiful are:
- stock options
- performance bonuses
- allowances
- other corporate perks
Depending on their role, CCOs may have flexible work schedules or work as independent consultants. Chief Compliance Officers maintain relative independence while reporting to senior board members. CCOs also have the opportunity to maintain ethical business operations and limit fraud. On the other hand, Chief Compliance Officers must be highly trained to analyze financial data and research government regulations. Several years of experience is mandated. Keen job competition is expected since the position is lucrative.
CCOs must also handle a tremendous amount of stress with hefty executive responsibility.
Getting Started
While earning an appropriate degree, it’s essential that you start bulking up your resume with real-world experience in the tricky compliance field. Take advantage of any compliance-related internships during your junior and senior year. Landing a plum internship or co-operative will help you start developing a professional network of contacts. After graduation, you’ll have to pay your dues in entry-level positions such as:
- compliance
- accounting
- finance
Moving up the rungs of the corporate ladder to Chief Compliance Officer usually takes at least 10 years. Professional certification can aid in faster promotions though. For instance, you could become a Certified Professional Compliance Officer (CPCO) through the AAPC for working in healthcare. Those in financial services could also benefit from becoming a Certified Regulatory Compliance Manager (CRCM) from the American Bankers Association.
Future Outlook
Global business growth and tighter international regulations will likely pave the way for more compliance-related jobs becoming available. According to CNN Money, employment of compliance officers is projected to rapidly grow by 27 percent over the next 10 years. They’ll be in high demand to make sure companies stick to state and federal laws for avoiding penalties. However, positions for Chief Compliance Officers are limited to one per organization. Hiring is extremely competitive for CCOs due to the abundance of qualified business graduates. Getting your foot in the door can be difficult since most companies promote from within. Private corporations, government agencies, manufacturing firms, healthcare centers, and non-profit organizations hire CCOs.
Overall, the Chief Compliance Officer is a senior-level executive who implement the policies that keep companies and their employees on a fair, ethical track to success. Whenever operations seem amiss, CCOs do thorough audits to correct any errors and make certain that rules are being properly followed once again. The U.S. News and World Report has recognized compliance officers for having America’s #20 best business job.
If you work towards becoming a Chief Compliance Officer, you could reap the financial and intrinsic reward of coordinating internal regulations on the executive board.
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