The CCO Left. Now What?


Ignites | August 9, 2016

The Ignites article, “The CCO Left. Now What?” quoted Russell Reynolds Associates' Cynthia Dow about her thoughts on an effective CCO succession plan. The article is excerpted below.
Increased regulatory scrutiny has put a spotlight on the value of a compliance chief and the risk of losing one without having a successor in place.
While an in-house CCO may be vital in averting enforcement actions, few fund advisors have considered how they will remain protected once theirs departs, recruiters say.

​An effective CCO succession plan requires more than simply promoting the next compliance staff member in line.
“You have a classic problem where the person is in an enterprise CCO role and they have a full view across the organization,” says Cynthia Dow, leader of the legal officers practice at Russell Reynolds Associates. “They see the whole business and all the horizontal functions, whereas the people below them have more narrowly defined and specialized roles.”

To address this knowledge gap, firms should have compliance staff rotate through departments across the organization, allowing them to gain experience with advisory work, business-facing roles and control processes, says Dow.

“This conscious effort to provide a range of experiences, as well as exposure to the senior leadership team, will help position them as ready,” she adds.

Dow referred to one large asset manager she worked with that identified a regional CCO considered to be a potential fit for the global CCO position. The firm, which Dow did not specify, brought the potential successor to headquarters to meet with general counsel and other executives. Together, they discussed the compliance program’s effectiveness, addressed its shortcomings and made a plan to prepare her for the “full scope of the broader role.”
To read the full article, click here​. ​

Sign up for our newsletter

Get the newsletter that prepares you for what's next with valuable insights across industries and geographies.
The CCO Left. Now What?