By Jill Gregorie, Financial Times
The average total compensation for a mutual fund CCO increased by a "modest" 0.8% in 2016, despite fierce competition for experienced candidates industrywide, according to a new report from Management Practice.
In 2016, chief compliance officers raked in $403,375, on average, when counting bonus, equity, deferred compensation and retirement contributions, according to the 2017 MPI Mutual Fund CCO Compensation Survey.
The year prior, chief compliance officers earned an average of $401,148, according to MPI.
This year's survey included responses from 60 CCOs at companies representing $2.3 trillion in assets. MPI does not survey the same group of mutual fund providers every year, but the 43 CCOs who responded both this year and last got raises, on average, of 2.5% year over year.
Smaller salary hikes may be indicative of a "new normal" for mutual fund CCOs and reflect belt-tightening and budget cuts many shops have inflicted companywide, says Dimitri Mastrocola, partner and head of the financial search practice at New York-based Major, Lindsey & Africa.
"That rate of increase year over year was unsustainable, so I think it's coming down a little bit," Mastrocola says.