CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
BarkerGilmore: Median public-company CCO earns $400,000+ in salary, bonus & long-term incentives
Chief compliance officers at private companies saw a decline in their compensation over the past year, while those at public companies and nonprofits both saw their earnings rise, according to a survey by executive search firm BarkerGilmore.
Factoring in salary, bonuses and long-term incentives, BarkerGilmore said the average CCO at a public company saw their compensation rise 7% to $419,000, while those at nonprofits saw the biggest increase, a 12% bump to $250,000. Those at private companies had a 1% decline to just under $300,000, the report found.
While median compensation rose across sectors, increases were lower than in past years, the report found. Across seven industry categories, only CCOs in the financial services sector saw their salary increases keep pace with the previous year. Professionals in the manufacturing and industrial sector experienced the biggest wage slowdown with a rate of compensation increase of only 2%, down from 7% the previous year.
Economic uncertainty and a post-Covid budgetary picture are likely contributors to slowing salary increases, said BarkerGilmore managing partner John Gilmore.
“We attribute the slowing of salary increases to various factors, including tighter post-Covid corporate hiring budgets, and economic and political uncertainty,” said Gilmore, who reported that analysts expect salaries to continue to rise over the next year.
“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,” Gilmore said. “The good news is that positions at the top cannot go unfilled for long. 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.”
KPMG: 78% of executives expect positive return from AI projects in next 3 years
Artificial intelligence continues to affect organizations of all sizes, according to a new survey by KPMG, which found that more than three-quarters of executives say generative AI should generate positive return on investment in the next few years.
The firm’s survey of 225 senior business leaders at companies with $1 billion or more in revenue showed that more than eight in 10 expect generative AI investments to rise over the next few years, while 78% are confident in those investments delivering a return in the next one to three years.
About one-quarter said they plan to deeply integrate generative AI into business processes and strategies, while 61% plan to expand the application scope of current GenAI initiatives. More than half (55%) plan to introduce GenAI into new business functions and the same share plan to invest in upskilling employees, recognizing the importance of preparing their workforce for the future.
“GenAI is not a fad. It’s a game-changer, and business executives expect to see the payoff in the next three years as they scale its use in their organization to gain a competitive edge and grow their business,” said Carl Carande, vice chair of advisory at KPMG. “The leaders I’ve talked to say that they believe a combination of investment in AI technology and talent will pay off in terms of better performance, improved quality and enhanced customer experience and loyalty.”
Analysis: Regulatory penalties for global financial institutions rise 31% in first half of 2024
Fines issued by global regulators saw a 31% increase in the first half of 2024 compared to the same period last year, according to an analysis by KYC provider Fenergo, which found that firms in the Asia-Pacific region saw the biggest increase, a 266% jump.
Regulators levied 80 fines in the first half of 2024, totaling more than $263 million for noncompliance with anti-money laundering (AML) regulations, including Know Your Customer (KYC), as well as sanctions, suspicious activity reports (SARs) and transaction monitoring violations, according to Fenergo’s analysis. In the same period last year, regulators issued over $201 million in penalties for the same types of violations.
The findings, which relate to enforcement actions spanning EMEA, North America and Asia-Pacific, indicate a multi-year trend of increasing fines, as watchdogs continue to crackdown on illicit behavior across the globe.