LOOKING UP, A LITTLE
Green Shoots on Pay, Jobs

Compliance officers are likely to see more job opportunities and higher compensation in 2010 as the industry recovers, with firms looking to refill positions axed during the financial crisis and beef up staff levels in anticipation of regulatory reform.

Recruiters told CR that, after a tough 2009, they were seeing demand for compliance officials almost across the industry. "The only sector where there is nothing going on is retail," said Andrea Stern of Howard-Sloan Financial Search. Among her searches were for a senior compliance officer for a large hedge fund; a director of research for a large investment bank; and the head of a control room at another investment bank. "Things are usually dead [at this time of year] and I'm swamped," she said.

Another encouraging sign is that several firms have agreed to buy out C/Os' year-end bonuses to bring them on board sooner, and occasionally even offer signing-on bonuses, Stern said. Jack Kelly of the Compliance Search Group said many more firms likely are holding back C/O searches until late January or February, so as to bring them on after bonuses are paid.

Compensation packages also have crept up, Stern said, with some mid-level C/Os being offered salaries of $200,000 to $250,000, up from the more typical range of $150,000 to $200,000.

The news isn't all good, with some recruiters are finding firms less willing to splurge. Michael Lord of Michael Lord & Co. said some institutions have placed pay-ceilings for C/O hires and are less willing to negotiate. "They're not going to bend to get that perfect person. They just say, 'We'll just move onto the next person,'" he said. Lord declined to comment on searches he had underway.

Kelly said he expected conservative pay deals will give way eventually as experienced C/Os get snapped up, particularly those with specialized skills. He added that he expected the real spree to begin after 2009 bonuses are paid out, but that much of the market will depend on the shape and strength of the regulatory reform packages coming out of Congress. Among searches he had underway, one was for an investment bank C/O covering underwriting, syndicated deals and initial public offerings. He also said he was looking to place candidates beyond the tri-state area, including Chicago, San Francisco, Miami and Dallas.

Goldman Sachs is looking to add C/Os in its asset management division, while Deutsche Bank has plans to staff up compliance to cover derivatives, structured products and mortgage-backed securities, according to one recruiter. A Goldman spokesman declined to comment. A Deutsche Bank spokeswoman declined to confirm the openings, but said the firm is seeking C/Os to cover areas such as internal monitoring, inspections and other positions.

~ Compliance Reporter, December 28, 2009