31 Days to a More Effective Compliance Program

One Month to a More Effective Compliance Program: Day 7-Designing compensation to operationalize compliance

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In this podcast episode, Tom Fox highlights the importance of incorporating compensation systems into a company's compliance program. He discusses how the DOJ and SEC view monetary structures as a way to reinforce compliance and reward employees who adhere to compliance programs. Fox advises compliance practitioners to revise incentive systems to align with the goals of the compliance program, ensuring simplicity, alignment with company values, and immediate behavior change. He also emphasizes the need to align compensation programs with compliance goals and shares examples of how this can be done effectively. These episodes provide valuable insights into the role of compensation in promoting compliance and integrating compliance into HR practices, emphasizing the importance of transparency and immediate action in implementing effective compensation structures for compliance.

Three key takeaways:

  1. The DOJ and SEC have long advocated compensation to motivate employees into ethical and compliant behaviors.
  2. Keep the compliance aspects of your compensation structure simple and easy for your employees to understand.
  3. Have full transparency in the frame of your compensation structure.


    4. For more information, check out The Compliance Handbook, 4th edition, available on LexisNexis.com.

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    31 Days to a More Effective Compliance ProgramBy Thomas Fox
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