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LogoutAt the end of the day, chief executives, regardless of their industry, usually take home the largest compensation. This is especially true in the financial realm. At the executive level, competition is severe, owing in part to the high prospective annual salaries, as well as the fact that such positions are particularly difficult to come by.
Let’s take it a step farther. If you’re vying for a top-level post, you might want to cross out chief executive officer (CEO) from your list. CEO positions are notoriously difficult to obtain, especially if you don’t have a long history with the company, graduated from a top 15 business school (Harvard, Yale, Wharton, etc.), and have a strong track record.
You can more readily aspire for one of these other top-tier management positions, all of which pay well in the financial industry: chief technology officer (CTO), chief financial officer (CFO), chief risk officer (CRO), and chief compliance officer (CCO). Even if you don’t make as much as the CEO, any of these other highly wanted positions will pay you well, with performance bonuses added on a regular basis.
The Increasing Importance of Technology and Compliance for CTOs and CCOs
- The fact that these are among the highest-paying occupations in the financial business provides valuable insight into what drives the industry and, more specifically, what contributes most to a financial firm’s success.
- The large sums of money awarded to CTOs indicate the importance of technology in today’s financial environment. Analysts’ remarkable trading algorithms are worthless until and until they are successfully integrated into a company’s computer system or trading platform. A competent CTO is someone who is able to combine high-level executive qualities with “tech geek” specific expertise.Even 20 years ago, it’s doubtful that CCO was among the highest-paid financial industry roles. However, the level of government regulation of the financial industry has grown to new record highs in recent years.
- As government regulation has expanded dramatically since the passage of the Dodd-Frank Act in the United States in 2010, as well as similar legislation in other countries, record-keeping, reporting, registration, and all other areas of compliance have steadily increased along with the complexity. It’s difficult enough to keep up with all of the different legal requirements for financial firms. If you have both a brain and an aptitude for dealing with regulatory requirements in a cost-effective manner.
It’s All About the Money for CFOs and CROs
- Outstanding CFOs and CROs are important to the success of a financial organisation because, at the end of the day, it’s all about the money.
- The chief financial officer (CFO) is the executive in charge of a company’s financial operations. Tracking assets and liabilities, managing cash flow, debt, and the company’s capital structure, and, probably most crucially, financial planning for future growth are all responsibilities of the CFO.
- Accounting, financial planning, and financial modelling are all competencies that a CFO must possess. Financial firms place a premium on having a CRO on staff. He or she acts as a scout for any financial events that could jeopardise the company’s profitability and financial solvency.
- The CRO oversees the firm’s investments and collaborates with the CCO to ensure that the firm’s legal compliance is not jeopardised. CRO schooling ranges from accounting to law, but the finest CROs are virtually always highly analytical, with outstanding problem-solving skills and a strong, instinctive sense for risk assessment.