Responses to a survey from BarkerGilmore published Tuesday show that compliance function employees with a Juris Doctor have a higher median total compensation than those who do not have the degree.

The higher total compensation for compliance professionals with a law degree spreads from the chief compliance officer and managing compliance officer, to those in the compliance function with no direct reports. The survey garnered responses from compliance professionals from public and private companies with 2018 revenues of less than $5 million to those with more than $5 billion.

Chief compliance officers with a law degree have a total median compensation of $407,832 while their counterparts without a law degree, who have an advanced degree, have a median compensation of $275,000, according to the report. Managing compliance officers with a law degree have a total median compensation of $296,033 while their counterparts with an advanced degree make $205,000 in total compensation. Lower employees in a compliance function with a law degree make approximately $172,000 a year while those with an advanced degree make $137,000 in total compensation. The results of the survey shows that those with a graduate degree or only a high school diploma make less than those with an advanced degree.

Dimitri Mastrocola, a partner at Major, Lindsey & Africa in New York, said one of the reasons he believes pay for chief compliance officers with a legal background is because of the high market for attorneys.

“In order to attract and retain JD talent into compliance positions you have to compete on compensation,” Mastrocola said.

Mike Evers, the founder of Evers Legal Search, said in an email that part of the reason for the higher pay may be because the chief compliance officer may also hold different roles such as associate general counsel or general counsel, which would account for a higher overall compensation package.

Those with a legal background are more likely to be hired for roles as a chief compliance officer, BarkerGilmore co-founder and managing partner John Gilmore, said Tuesday. He said the perception among companies is that someone with a legal background is better suited to navigate through regulations and guide a company on how to comply with those regulations.

“It's never a hard requirement [for the job] but is always preferred,” Gilmore said.

However, despite the pay gap, Mastrocola said a good CCO does not need to have any legal training.

“The lawyers in the company are the ones who define the boundaries of the highway,” Mastrocola explained. “The CCOs are the ones who make sure the company stays within those defined lanes. Good CCOs know the law well, but they do not need to be trained lawyers.”

The report also showed there is a gender pay gap in all compliance roles. Amy Feldman, managing director at BarkerGilmore, said women in any role in a compliance function make, on average, 76% of what their male counterparts make.

Gilmore, however, said they are seeing the gap closing as states begin to pass laws that bar employers from asking for a salary history.

“We like it better when we know what [the job] pays and ask if this will work for you,” Gilmore said.

He explained that when companies give a salary up-front without asking for a history there is no gender bias. If the salary is not satisfactory to a candidate, Gilmore said, then it has nothing to do with the candidate's gender or ethnicity.