Study Reveals J.D. Increases Compensation of Compliance Professionals

BarkerGilmore, a boutique executive search firm recognized for helping companies build, develop, and optimize legal and compliance departments, released its annual 2021 Compliance Compensation Report today. The data was collected from a random sample of in-house compliance professionals throughout the United States via an online survey administered from February to March 2021.

“Each year, we are excited to share new compensation insights for compliance professionals. The data shows compliance leaders who have a law degree command a significantly higher compensation package than their peers who do not. The data tells a compelling story of the monetary value a law degree provides compliance leaders,” said Bob Barker, Managing Partner of BarkerGilmore.

Key trends revealed by the report include:

1. Annual Salary Increase Rates: The average annual salary increase for all positions across industries was 3.46%. The two highest salary increases were in the energy sector at 5.0% and the healthcare/life sciences industries at 3.9%. The two industries with the lowest salary increase were professional services at 2.6% and technology at 2.8%. Compliance Officers were 14 percentage points more likely than Chief Compliance Officers to anticipate a compensation-motivated job search in 2021, 50% versus 36%.
2. Chief Compliance Officers: Chief Compliance Officers with a J.D. have a significantly higher salary than their non-J.D. counterparts. Total compensation for Chief Compliance Officers with a J.D. is 26% higher than those without a J.D. Long-term incentive accounts for the largest difference in compensation between those with a J.D. and those without; however, a difference is also observed for both base salary and bonus. Total compensation for female Chief Compliance Officers was 6% lower than their male counterparts.
3. Compliance Officers/Counsel: Consistent with Chief Compliance Officers, Compliance Officers and Compliance Counsel with a J.D. have a considerably higher compensation package than their counterparts who do not. Total compensation for Compliance Counsel was 28% higher than that of their non-J.D. counterparts. Base salary, bonus, and long-term incentive demonstrate medians consistently higher for Compliance Officers and Counsel with a J.D. Total compensation packages for female Compliance Officers and Counsel were 6% higher than their male counterparts.
4. Public vs. Private: Consistent with previous report, the compensation of those at publicly traded companies is significantly higher than at private organizations. Across all position levels, restricted stock units (RSUs) continue to be the most common form of long-term incentive (LTI) compensation at public companies. In private organizations, if LTI is offered, the structure is much more variable and may come in the form of stock options or performance shares. Total compensation for Chief Compliance Officers at public companies is 51% greater than at private companies. The total compensation for Compliance Officers at public companies is 55% greater than at private companies.
5. Location: Compensation packages in major metropolitan markets continue to be greater than mid-sized markets, which are higher than in small city, rural areas. Total compensation for Chief Compliance Officers in major metropolitan areas was 20% higher than their counterparts in mid-sized metropolitan areas. Mid-sized metropolitan Chief Compliance Officer total compensation was 24% higher than their small city counterparts. Total compensation for major metropolitan Compliance Officers was 2% higher than their mid-sized metropolitan counterparts. Mid-sized metropolitan Compliance Officer total compensation was 46% greater than their small city counterparts.
6. Industry Highs & Lows: This year saw some interesting changes and new industry leaders. Download our report to see the industries that pay the most and the least!

To view the full study, download the 2021 Compliance Compensation Report.