New Clout for Compliance Lawyers

Article published on May 20, 2005

Years of scandal have given compliance lawyers tremendous new clout on Wall Street, The New York Times reports.
Though considered something of a dead-end job a few years ago, the compliance lawyer is now hotly sought after, industry people tell the paper.

From 2001 to 2003, securities industry jobs dealing with corporate oversight rose 30%, compared to an industrywide decrease of 8%, according to Securities Industry Association data cited by the Times.

Naturally, pay has risen with demand.

Lawyers and recruiters interviewed by the Times say that many lawyers experienced in compliance issues can pull down salaries of around $300,000 for a mid-level associate position, while those heading compliance at major firms could expect up to seven figures. Fueling the trend further, hedge funds have started seeking out compliance experts ahead of new regulations requiring them to register with the SEC starting next year.

One place that big firms are looking is in government, seeking out staff lawyers from the SEC and former prosecutors with expertise in corporate fraud cases, the Times adds.

Two lawyers from Eliot Spitzer's office are among those who've been recruited from government positions to Wall Street compliance posts. Last year, Beth Golden, Spitzer's deputy for special projects, went to Bear Stearns as global head of compliance. And in 2003, Morgan Stanley hired Spitzer aide Eric Dinallo as its regulatory chief.

Along with more pay, meanwhile, comes more power. Compliance chiefs used to report to their company's deputy chief counsel. But in many cases they now report directly to the CEO, according to the Times.

(News summaries based on original reports in other publications are prepared by the IGNITES.com staff and are not created, sponsored, approved or endorsed by the publications to which the original reports are attributed.)

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