|  | | 2005 News and Press Releases | | |
HEADLINE NEWS:
THE COMPLIANCE OFFICER RISES TO THE C-SUITE
Staff Writer – US Banker
Securities Mosaic. January 3, 2005
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EXCERPT: Who's the most valuable person in your bank? Not the CEO, not the COO, not the CFO. Today that lofty designation most likely belongs to another: the compliance officer, whom recruiters say has become the hottest commodity in the industry. No longer a homegrown employee plucked from the legal or accounting department, the compliance officer has become a key employee at most financial services firms. Though he used to report to the general counsel or the CFO, he now reports to the CEO, the chief risk officer, or the Board of Directors itself. Increased regulatory scrutiny and a growing emphasis on corporate governance has pressured more banks to pay attention to their image in the financial world. "With the corporate scandals of the last 18 months, corporate America has discovered it needs a higher level of compliance and talent within their organization," says Amy de Rham, partner at New York City recruiting firm Rhodes Associates. "The officer really has to be an objective voice, someone who can deal with multiple constituencies within the company. There's a reason why the job is more important-the scope of responsibilities is more demanding." Litigation is a constant fear. "Now a firm can not only be fined by the SEC, but there can be civil action as well. That ups the ante quite a bit," says Cindy Cottman, senior client partner at recruiter Korn/Ferry International. "If you're the CEO...you want to protect your own self personally, as well as your firm and its reputation." Reputation is the bottom line. "It all goes back to shareholders," says de Rham. "Are you doing your fiduciary responsibility for your shareholders?" |
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