Compensation Trends for Compliance and Legal Executives · 05-03-2019 · Transition Veterans ... Social Media Code of Ethics ... management executives with select investment management

www.rcaonline.org

Compensation Trends for

Compliance and Legal Executives

March 5, 2019

Senior Practice Fellow:

Jason M.E.Wachtel, Managing Partner, JW MICHAELS & CO.

Guest Lecturers:

David Sawits, Senior Vice President, JW MICHAELS & CO.

John Spinosa, Senior Vice President, JW MICHAELS & CO.

Justin Mandel, Partner, JW MICHAELS & CO.

Michael Winans, Director, JW MICHAELS & CO

2

RCA Mission & Community

NORTH AMERICA

EUROPE

ASIA

AFRICA

SOUTH AMERICA

AUSTRALIA

Exclusive Global Authority for Continuing Compliance

Education (CCE®); Talent Assessment & Development;

Professional Exams; Executive Degree Programs.

RCA Global Metrics

Supporting over 80,000:

• Individuals in Career

Transition

Veterans

Single Parents

• Regulators

• Financial Execs

• Professionals

• Jobseekers

• Millennials

Recognized by over

30,000 senior level

Regulators, Lawyers,

CPAs, Investors and

Financial Institution

Executives

3

Core Verticals

Continuing

Compliance

Education

Professional

Exams &

Certifications

Executive Masters

Degree Programs Talent Assessment

& Development

Recognized & Used by

over 30,000 Regulators,

Institutional Investors,

Compliance Officers,

Legal & Operations

Executives

Governing, Regulating

& Administrating the

Professional

Examination of

Regulatory Counsel,

Regulatory Analysts &

Compliance Officers.

• Executive MS (Master

of Science) in

Compliance

• Executive LLM (Master

of Law) in Regulation

Invest in Your

Future…Position

Yourself for SuccessTM

• Certifying Regulators

• RTAC – Assessment of

Compliance Knowledge

& Skills

• RTEDS - Talent

Management and

Development

RCA Mandate

4

Curriculum

Development

RCA’s CCE® (Continuing Compliance Education) Accreditation requires all course materials to satisfy graduate level criteria within each phase of the academic process: Curriculum Development, Instructional Design & Peer Review.

Instructional

Design Peer Review Accreditation

• Course Materials

(Textbook, Instructional

Aides, etc.)

• Lectures

• Examinations

• Syllabus and detailed

outline

• Entire course offering

• Mandatory annual

review and

accreditation of Course

Materials.

• CPE (Continuing

Professional Education).

• CLE (Continuing Legal

Education).

• CCE® (Continuing

Compliance Education®)

RCA CCE® Accreditation – Refined Over 20 Years

• Independent assessments

of course subject matter.

• Faculty drafted syllabus &

corresponding outline.

• Faculty prepared course

materials.

• Proprietary work product

(forms,

policies/procedures,

contractual language, etc.)

© RCA, 2000-2018, All rights reserved

RCA CCE® Accreditation

5

Firms Using RCA Accredited CCE®

6

Regulators & Industry Executives Using CCE ®

7

RCA for Employers Exclusive Global Authority for Continuing Compliance

Education (CCE®); Talent Assessment & Development;

Professional Exams; Executive Degree Programs.

Optimize Your Firm

RTAC™ – RCA’s Talent Assessment

Center

RTEDS™ – RCA’s Talent Enhancement

& Development System

REIS™ – RCA’s Regulatory Exam

Interview System

RTAC™ + RTEDS™ + REIS™ = RCA

Validated Talent Optimization

8

RCA Talent Assessment Center (RTAC)

Fortify Your Firms Human Capital – Its Greatest AssetTM

9

RCA Talent Enhancement and Development System (RTEDS)

Law & Practice

Law

Practice

Operational Process

Cybersecurity

Due Dilligence

Risk Management

Fund Goverance

Valuation

Accounting

Taxation

FACTA

BEPS

Compliance

Process

Surveillance

Supervision

Analytics

Case Management

Risk Assessments

Forensic Testing

Reviews

Remediation

Reporting

Marketing

Disclosure Practices

Client/Customer/IR

Fiduciary Duty

AML

Social Media

Code of Ethics

Trading & Markets

Conflicts

Exams &

Enforcement

Inspections

Examinations

Enforcement

Civil Discovery

Civil Litigation

Investigatory Practice

Criminal Prosecution

Regulation 33 & 34 Act

IA Act 1940

IC Act of 1940

Crypto Currencies

Digital Assets

CTA Regulation

CPO Regulation

AIFMD

UCITS

MiFIDs

EMIR

DOL / ERISA

AML / KYC

Trading & Markets

Insider Trading

Market Manipulation

Systemic Risk

Political Contributions

Whistleblower

FCPA

Anti-Bribery

Sanctions

Anti Trust

HSR

Fortifying Human Capital – Your Firms Greatest AssetTM

10

Automated Regulatory Examination Interview System™ (REIS™)

SEC Examiners NOW interview your personnel to find deficiencies in their

core competencies and skill sets. RCA’s Examination Interview System

(REIS) simulates the interview process to identify and resolve knowledge

gaps by assigning accredited, up-to-date, relevant, targeted, talent

development.

Design &

Deploy

Configures

mock exam

interviews by

subject or topic

for a division,

department,

group or

particular

employee.

The cloud-based

system simulates

the interview

process with a

database of over

15,000 queries

spanning 4500

topics using a “self-

paced”

environment.

Automatically

identifies,

assesses and

evaluates each

employee’s

gaps in core

competencies

skill sets and

knowledge.

11

RCA for Career Advancement

Invest in Your Future… Position Yourself for SuccessTM

Professional

Exams and

Certifications

• CRC (Chartered

Regulatory Counsel)

• CRA (Chartered

Regulatory Analyst)

• Surpass JD &

MBA Graduates

RCA Symposia Executive

Degree

Programs

Continuing

Compliance

Education

• Timely, Relevant

Commentary

• Comprehensive,

Up-to-Date,

Practice Guides

• Over 800 Topics

• Executive MS

(Master of Science)

in Compliance

• Executive LLM

(Master of Law) in

Regulation

• Accredited,

Authoritative

Faculty

• Network with

Industry Leaders

& Senior

Regulators

12

Regulatory Leaders Endorse RCA

13

Regulatory Leaders Endorse RCA

14

Industry Leaders Endorse RCA

Financial Services Market Data 2018

JW M i c h a e l s & C o . • 4 4 1 l e x i n g t o n A v e n u e , 1 1 t h F l o o r • N e w Y o r k , NY 10017 • P h : 2 1 2 -9 2 2 -2 8 4 4 • w w w . j w m i c h a e l s . c o m

16

About

JW Michaels & Co. is a specialized executive search firm dedicated to

serving the specialized recruiting needs of top-tier financial services,

legal, technology and business institutions. We place compliance

officers, general counsel, patent counsel, IT, legal and risk

management executives with select investment management firms,

hedge funds, investment banks, law firms and Fortune 500 companies

in every industry.

The scope of our services is always tailored to our client’s individual needs.

With nearly 50 years’ professional recruiting experience, our

commitment to excellence has allowed us to act as a trusted advisor

and partner to help our clients meet their hiring needs by sourcing the

best in professional talent. No matter the role, our recruiting process is

as accurately targeted as possible – exactly what you need from an

executive search agency.

For more information about JW Michaels, contact Jason Wachtel at (646) 346-2454.


17

Data Collection


The data appearing in this compensation report were collected by comparing invoiced placements made by JW Michaels in 2018. If you have any questions, please contact Jason Wachtel at (646) 346-2454.

18

Small-Medium Asset Management Firm = <$50B AUM Large Asset Management Firm = $50B - $1T+ AUM Small-Medium Hedge Fund = <$10B AUM


Large Hedge Fund = $5B - $50B+ AUM Small-Medium Private Equity Firm = <$10B AUM Large Private Equity Firm = $10B - $50B+ AUM

*NOTE: Counsel title optional

**NOTE: Upper end of comp range applies to dual-hatted compliance professionals

C o m p l i a n c e

Firm Size and Type

Title*

Total Compensation / Compensation Range**

Small-Medium Asset Management Firm Compliance Analyst/Associate $80,000 - $120,000 Compliance Officer/VP/Director $150,000 - $310,000 Deputy Chief Compliance Officer $325,000 - $450,000 Chief Compliance Officer $400,000 - $520,000

Large Asset Management Firm Compliance Analyst/Associate $80,000 - $140,000 Compliance Officer/VP/Director $150,000 - $310,000 Deputy Chief Compliance Officer $420,000 - $550,000 Chief Compliance Officer $620,000 - $825,000

Small-Medium Hedge Fund Compliance Analyst/Associate $80,000 - $125,000 Compliance Officer/VP/Director $150,000 - $250,000 Deputy Chief Compliance Officer $250,000 - $410,000 Chief Compliance Officer $425,000 - $525,000

Large Hedge Fund Compliance Analyst/Associate $95,000 - $135,000 Compliance Officer/VP/Director $125,000 - $275,000 Deputy Chief Compliance Officer $350,000 - $500,000 Chief Compliance Officer $520,000 - $1,050,000

Small-Medium Private Equity Firm Compliance Analyst/Associate $125,000 - $200,000 Compliance Officer/VP/Director $225,000 - $310,000 Deputy Chief Compliance Officer $300,000 - $375,000 Chief Compliance Officer $400,000 - $610,000

Large Private Equity Firm Compliance Analyst/Associate $75,000 - $150,000 Compliance Officer/VP/Director $160,000 - $320,000 Deputy Chief Compliance Officer $300,000 - $450,000 Chief Compliance Officer $500,000 - $1,200,000

Banks & Broker Dealers Compliance Analyst/Officer $55,000 - $125,000 Compliance Officer/VP/Director $135,000 - $320,000 Deputy Chief Compliance Officer $375,000 - $510,000 Chief Compliance Officer $525,000 - $850,000

Consulting & Advisory Services Firm Analyst/ Associate $70,000 - $100,000 Manager/Director $150,000 - $200,000 VP/ SVP $255,000 - $370,000 MD/ Partner $400,000 - $500,000

19




L e g a l

Firm Size and Type

Title

Compensation Range

Large Asset Management Firm Associate $185,000 - $230,000 Vice President, Sr. Counsel $275,000 - $350,000 SVP, Deputy GC $350,000 - $500,000

General Counsel $800,000 - $1,200,000

Small-Medium Hedge Fund Paralegal/Legal Analyst $75,000 - $90,000 Associate $225,000 - $325,000 AGC & Compliance Officer $250,000 - $350,000 Director of Legal Affairs $350,000 - $450,000

GC & CCO $650,000 - $850,000

Large Hedge Fund Paralegal/Legal Analyst $75,000 - $125,000 Legal Counsel/AGC $175,000 - $400,000 VP, Deputy GC & CCO $350,000 - $650,000

General Counsel $900,000 - $1,300,000

Small-Medium Private Equity Firm Senior Associate, Legal & Compliance $150,000 - $250,000 Vice President, Legal & Compliance $200,000 - $400,000

General Counsel $950,000 - $1,300,000

Large Private Equity Firm VP, Legal & Compliance $250,000 - $300,000 VP, Sr. Counsel $285,000 - $400,000 VP, AGC & Deputy CCO $350,000 - $650,000

GC & CCO $750,000 - $1,000,000

Top Law Firm Counsel (Lateral) $500,000 - $650,000 Partner (from SEC) $600,000 - $650,000

Partner (Lateral) $1,500,000 - $3,500,000

FinTech Financial Institution Senior Counsel, Regulatory $275,000 - $350,000 Counsel, Regulatory $250,000 - $325,000 Corporate Counsel, Payments $230,000 - $280,000

General Counsel $450,000 - $800,000

20




Risk

Firm Size and Type

Title

Compensation Range

Large Asset Management Firm Risk Director $240,000 - $300,000

Small - Medium Hedge Fund Quantitative Risk Analyst $95,000 - $125,000 Risk Director $205,000 - $250,000

Chief Risk Officer $750,000 - $1,100,000

Large Hedge Fund VP, Model Risk $165,000 - $220,000 VP, Market Risk $275,000 - $325,000

Large Private Equity Firm Principal, Communications $150,000 - $200,000

FinTech Financial Institution Risk Analyst/Underwriter $50,000 - $90,000

Chief Risk Officer $400,000 - $650,000

21

A c c o u n t i n g a n d F i n a n c e




Firm Size and Type Title Compensation Range

Large Asset Management Firm Senior Accountant $110,000 - $170,000 Tax Associate $200,000 - $250,000 Senior Tax Manager $250,000 - $315,000 Controller $500,000 - $900,000

CFO (DIV) $600,000 - $800,000

Small-Medium Hedge Fund Senior Accountant $85,000 - $125,000 Tax Associate $200,000 - $250,000 Senior Tax Manager $250,000 - $315,000 Controller $350,000 - $650,000

CFO $750,000 - $1,100,000

Large Hedge Fund Senior Accountant $75,000 - $125,000 Manager of Finance $125,000 - $160,000

Director of Tax $350,000 - $650,000

Small-Medium Private Equity Firm Senior Accountant $80,000 - $123,000 Tax Associate $200,000 - $250,000 Senior Tax Manager $250,000 - $315,000 Controller $500,0000 - $700,000

CFO $600,000 - $900,000

Large Private Equity Firm Senior Accountant $80,000 - $123,000 Tax Manager $180,000 - $210,000 Consolidations Director $180,000 - $220,000 Senior Tax Manager $250,000 - $315,000

Controller $500,0000 - $700,000

Professional Services Firm (CPA) Associate, Audit $55,000 - $85,000 Senior Tax $85,000 - $110,000 Manager Audit $120,000 - $150,000 Senior Manager $180,000 - $300,000 Director, Audit $225,000 - $325,000

22

I n f o r m a t i o n T e c h n o l o g y





Small-Medium Asset Management/Hedge Fund Software Developer $120,000 - $200,000 Lead Software Engineer $170,000 - $250,000 Linux/Unix Engineer $165,000 - $200,000 DevOps Engineer $140,000 - $220,000 Network/Systems Admin $120,000 - $170,000 Salesforce Consultant $180,000 - $250,000 Information Security Manager $190,000 - $250,000 Head of Infrastructure $190,000 - $260,000 Head of Application Development $190,000 - $260,000 Chief Technology Officer $190,000 - $260,000

Large Asset Management/Hedge Fund Software Developer $120,000 - $200,000 Lead Software Engineer $170,000 - $250,000 Linux/Unix Engineer $165,000 - $200,000 DevOps Engineer $140,000 - $220,000 Business Analyst $150,000 - $190,000 Network/Systems Admin $120,000 - $170,000 Salesforce Consultant $180,000 - $250,000 Information Security Manager $190,000 - $250,000 Head of Infrastructure $190,000 - $260,000

Large Investment Bank Programmer $90,000 - $130,000 Software Developer $120,000 - $190,000 Lead Software Engineer $150,000 - $220,000 Senior Vice President, Development $220,000 - $270,000 Business Analyst $130,000 - $180,000 Project Manager $130,000 - $180,000

Insurance Company Software Developer $80,000 - $150,000 Lead Software Engineer $120,000 - $160,000 Information Security Manager $130,000 - $150,000

FinTech Firm Software Developer $110,000 - $160,000 Lead Software Engineer $140,000 - $190,000 DevOps Engineer $140,000 - $160,000 Network/Systems Admin $110,000 - $160,000 Chief Information Secruity Officer $180,000 - $260,000 Head of Application Development $150,000 - $300,000 Chief Technology Officer $200,000 - $600,000

23

H R / F r o n t O f f i c e





Large Asset Management Firm Analyst, Total Rewards & Mobility $70,000 - $90,000

Small-Medium Asset Management Firm Quant Investment Analyst $150,000 - $225,000 Financials Associate $175,000 - $300,000 Healthcare Analyst $200,000 - $400,000

(Senior) Credit Analyst $300,000 - $750,000

Large Wealth Management Firm Head of Talent Acquisition $300,000 - $500,000

Large Hedge Fund HR Analyst, Recruitment Operations $62,500 - $85,000 Recruiting Associate/Coordinator $70,000 - $95,000 HR Strategy & Planning Analyst $95,000 - $125,000 Recruiter $100,000 - $250,000 Tech Recruiter $125,000 - $275,000 Payroll Manager $150,000 - $200,000 Campus Recruiter $150,000 - $350,000 Compensation Partner $200,000 - $300,000 Senior Tech Recruiter $200,000 - $475,000 VP, Engineering Recruiting $250,000 - $300,000 Senior HR Business Partner $250,000 - $400,000

Healthcare Analyst $250,000 - $1,000,000

Small-Medium Hedge Fund HR/Office Manager $50,000 - $65,000 Quant Recruiter $150,000 - $250,000 University Relations Lead $175,000 - $375,000

Tech Recruiting Director $300,000 - $500,000

Large Private Equity Firm AVP/Senior Associate, HR Business Partner $150,000 - $200,000 Senior HR Business Partner $200,000 - $350,000

Global Specialty Finance Co. Senior Analyst, Pricing & Valuation $225,000 - $275,000

24

24

Since 2013, JW Michaels has witnessed a significant amount of compression with respect to Sell Side compliance roles/ positions.

Fewer and Fewer CCO and Deputy Level Positions within Broker-Dealers

Firms are leveraging a greater number of junior compliance officers to “back-fill” where there are coverage gaps traditionally served by Senior Compliance Officers

Firms are seeking “strategic’ guidance from “outsourced” providers for regulatory and compliance guidance related to new products and business expansion

Firms are “outsourcing” many of the day to day “blocking and tackling” requirements due to lack of bandwidth and lack of additional headcount

Sell Side Market Trends

25

Buy Side Market Trends

25

As Sell Side contracts – significant expansion in number of State Registered and SEC Registered Investment Advisers

Smaller Independent Investment Advisers have very limited compliance related resources

Even in instances where a full-time Chief Compliance Officer exists

– that individual is often pulled in many different directions / stretched too thin

As new / recent registrants, Independent Investment Advisers are seeking to “outsource” many of the day to day “blocking and tackling” requirements due to lack of knowledge and bandwidth and lack of additional headcount

Some Independent Investment Advisers look to third party providers to take on outsourced Chief Compliance Officer role and liability

26

Pain Points of Broker-Dealers

26

FINRA New Membership Applications (“NMA”) and Continuing Membership Applications (“CMA”) DOL Fiduciary Rule Guidance

Affiliated Investment Adviser Conflicts of Interest Assessments

Overall Compliance Strategies and Execution

Written Supervisory Policies and Procedures

Annual WSP CEO Certification Reports

Annual Anti-Money Laundering Assessments

Market Access (SEC Rule 15c3-5) Assessments

27

Pain Points of Broker-Dealers (cont.)

27

SEC, FINRA and State Inquiry and Investigation Responses

Advertising and Sales Literature Reviews

Customer Transactions and Employee Personal Trading Reviews

Annual or Periodic Branch and Desk Mock Examinations

Electronic Communications Platform Optimization and E-Mail Reviews

Financial and Operations Principal (FinOp) Support

Annual Compliance Meetings and Firm Element Training

Ongoing Registration Support(Form U-4, Form U-5, Form BD)

28

Pain Points for Investment Advisors & Other Buy Side Clients

28

Applications for Federal or State Registration

DOL Fiduciary Rule Guidance

Affiliated Broker-Dealer Conflicts of Interest Assessments

Overall Compliance Strategies and Execution

Codes of Ethics

Written Supervisory Policies and Procedures

SEC and State Inquiry and Investigation Responses

Marketing Material Reviews

Customer Transactions and Employee Personal Trading Reviews

Rule 206(4)-7 Annual Compliance Reviews and Mock Audits

Annual or Periodic Regulatory Training

Ongoing Registration Support (Form ADV Part 1, 2A and 2B)

Form PF and Form 13F Filings

29

What are the Enterprise Issues Firms are facing?

29

Codes of Conduct

FCPA Programs and Violation Investigations

Internal Corruption Preventative Tactics and Investigations

Third-Party Due Diligence Approaches and Reviews

M&A Corruption Due Diligence

Internal Control Programs

Fraud, Corruption and FCPA Risk Analyses

Ethical Culture Surveys

Conflict of Interest Questionnaires and Assessments

Guidance on Engaging with Regulators

Anti-Fraud, Anti-Corruption and Ethics Training

ISO 37001 Anti-Bribery Program Assessments

Anti-Fraud and Ethics Policies, Procedures and Best Practices

30

Speaker Summary

and

Final Thoughts

31

Jason Wachtel is the Managing Partner of JW Michaels & Co. and heads up

all business development, operations, and strategic growth initiatives for the firm.

Jointly, Jason is one of the founders and partners of Compliance Risk Concepts

(CRC), and ExecuSource. He serves on the board of the Children Medical Fund at

Cohen’s Children Hospital.

Jason was formerly co-head of an Executive Search division of a national

search firm and built and ran the firm’s Legal and Compliance practice. Prior to that,

Jason worked at a legal and compliance search firm where he was Director of New

Business Development and was in charge of due-diligence related to the Firm’s M&A

activities.

A frequently interviewed expert in the area of compliance hiring, Jason was

recently quoted in The Wall Street Journal and in Thomson Reuters articles

discussing the red-hot market for compliance officers and compensation for Chief

Compliance Officers in investment banks. He received a Bachelor of Science in

Political Science from Syracuse University.

31

Jason Wachtel, Managing Partner, JW Michaels & Co. Compliance Risk Concepts (CRC) & ExecuSource

32

Justin Mandel is a partner JW Michaels & Co. and head of

the General Counsel and Chief Compliance Officer Practice. He also

co-heads JW Michaels’ New York Office. Justin was formerly a co-head

of the Executive Search division of a national search firm and built and

ran the firm’s legal and compliance practice.

Prior to recruiting, Justin worked in real estate development

and consulting, and was a Senior Consultant in the Washington, D.C.

office of PKF Consulting – Hotel Consulting Services. Justin received a

Bachelor of Science (Honors) in Business Administration from the

University of Delaware.

32

Justin Mandel, Partner, Head of General Counsel and Chief Compliance Officer Practice,

JW Michaels & Co

33

David Sawits is Vice President and Head of the Legal

division of JW Michaels. Previously, David was a Vice President of

Legal Placements with a national legal staffing company, where he

supervised a team of search consultants specializing in legal

placement across a broad spectrum of companies and firms

nationwide.

David began his legal career as an Assistant Vice President

and Associate Counsel for a major corporation where he handled

employment- related litigation and negotiated employment contracts

and compensation agreements. In addition to his Juris Doctorate,

David earned his M.B.A. from C.W. Post.

33

David Sawits, JD, Vice President & Head of Legal Recruitment, JW Michaels & Co.

34

John Spinosa, Vice President of Accounting & Finance, JW Michaels & Co

John Spinosa is currently the Senior Vice President of the

Accounting & Finance and Consulting Practices. With almost two

decades of experience in executive recruitment, his primary focus is on

C-Level roles with clients in the alternative asset management space.

Prior to joining JW Michaels, John was a Director at one of the

largest executive recruitment agencies in the world, where he created

and ran operations for various divisions in the Financial Services sectors.

He also co-founded his own boutique executive recruitment firm,

Johnathan Marks and Associates. John holds a B.A. in Finance.

35

Michael Winans, Director, Risk & Treasury Recruitment, JW Michaels & Co

Michael Winans focuses on recruiting for Risk, Treasury, and

Accounting & Finance positions, on both a permanent and contractual-

needs basis. He has successfully worked with Regional Savings Banks,

Broker Dealers, Large BB Investment Banks, FBOs, various Buy-Side

firms, and Fintech clients.

Michael earned his B.S. in Business Management, Human

Resources and minored in Communications, from West Virginia

University.

36 © RCA, 2000-2018, All rights reserved

Documents

Compensation Trends for Compliance and Legal Executives · 05-03-2019 · Transition Veterans ... Social Media Code of Ethics ... management executives with select investment management