A New Policy is Making Corporate Compliance Chiefs Uneasy

Brian Michael spoke to the Wall Street Journal about a new Justice Department policy making chief compliance officers personally liable for guaranteeing the effectiveness of their company’s compliance program in settlements with federal prosecutors.

“I think it could make a compliance officer’s job really difficult,” Brian said. “It runs the risk of creating a lot of resentment and friction between chief compliance officers and other senior executives.”

Brian added that the policy could put compliance officers in a bind, and while it empowers them to a degree, giving them the ability to refuse certification could fracture their relationship with the CEO and other executives.

“The CEO is not going to look kindly on a COO who is not willing to sign this thing, particularly if the CEO or other senior executives think they ought to be able to,” Brian said.

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