How to Use These Benchmarks

Pay for Senior Managers varies more than for almost any other senior role, because it depends on the size and complexity of the firm, its regulatory tier, the sector, the location and the individual’s track record with the regulator. The ranges below are base salaries unless stated otherwise, and they’re indicative rather than definitive. Smaller and simpler firms will usually sit at the lower end of each range; larger, dual-regulated and more complex firms at the upper end or above.

We use three firm size bands throughout:

• Smaller firms: typically Core firms with revenue or assets under management below around £50 million, such as boutique investment managers, brokers, smaller lenders and payments firms.
• Mid-size firms: established firms with revenue or equivalent between around £50 million and £300 million, including many Enhanced firms.
• Larger firms: major wealth managers, mid-size banks and building societies, insurance groups and larger dual-regulated firms. At the very largest institutions, pay can substantially exceed these ranges.

Why Senior Manager Pay Is Different

Under the Senior Managers and Certification Regime, every Senior Manager needs regulatory approval before they start, signs a Statement of Responsibilities and carries personal accountability for their area under the Duty of Responsibility. Candidates price that accountability into their expectations. In our experience, holding a Senior Manager Function typically carries a premium of 15–30% over an equivalent senior role without the designation.

Three further factors push pay up. Approved candidates with a clean regulatory record are in short supply. The approval process, which can take up to three months once a complete application is submitted, adds risk and delay to any move. And a candidate’s regulatory references follow them throughout their career, which makes experienced Senior Managers selective about the firms they join.

Executive Senior Manager Functions

First-time SMF1 appointments, where an executive moves into a chief executive role at a regulated firm for the first time, typically come with an increase of 20–30% on current pay. SMF3 pay varies most of all, because the designation covers everything from a divisional chief executive at a bank to an advising director at a small advice firm. See our pages on regulated CEO recruitment and RDR-qualified Senior Managers.

Control Function Senior Managers

Control function pay has risen faster than most senior pay over recent years, driven by Consumer Duty, financial crime enforcement and a shortage of approved candidates. Specialists with dual-regulated experience, Consumer Duty implementation experience or a track record of responding to FCA enforcement or skilled person reviews can command 20–35% above these ranges.

At very small firms, such as small brokers or consumer credit businesses where compliance oversight and money laundering reporting are combined in a single, largely hands-on role, pay can be lower, typically £60,000–£90,000 outside London. Where the MLRO role isn’t a Senior Manager Function, for example at payment and e-money institutions authorised only under their own regulations, pay broadly tracks the SMF17 ranges for firms of similar size and risk.

Board and Non-Executive Fees

Non-executive Senior Manager Functions are paid by annual fee rather than salary, and committee chair and Senior Independent Director fees are usually in addition to the base non-executive fee.

Committee chair fees rise during periods of heavy activity, such as a chief executive succession for the nomination committee chair, or remediation for the risk and audit committee chairs. See our page on chair and committee chair recruitment.

Compliance and Financial Crime Roles Below Senior Manager Level

These are London base salaries. For regional roles, see the location section below.

Specialist expertise commands a premium at these levels too. Compliance managers with financial crime, Consumer Duty, CASS or SMCR expertise typically earn 10–20% more than general equivalents, and qualifications such as ACAMS or ICA diplomas help candidates move up the ranges. For more detail on these roles, FD Capital publishes a compliance and risk salary guide.

Interim and Fractional Day Rates

Interim and fractional Senior Managers are paid by the day. Rates below are outside IR35. Engagements inside IR35 typically carry effective take-home rates 25–30% lower. HMRC’s off-payroll working guidance explains the rules.

Interim day rates typically equate to 1.5–2 times the daily rate implied by an equivalent permanent salary, reflecting the absence of benefits, the flexibility for the firm and the immediate availability of an experienced, approvable individual. Fractional compliance and MLRO arrangements at smaller firms commonly cost £40,000–£90,000 a year, depending on the time commitment and the firm’s risk profile. See fractional and interim SMF cover.

How Pay Varies by Location

London salaries are typically 20–40% higher than regional equivalents at compliance manager level and below. At Senior Manager level the gap narrows, because the candidate pool is national and many senior roles are now hybrid. As an indication, a compliance manager with seven to ten years’ experience typically earns:

Regional figures draw on our placement data alongside ONS earnings data.

How Pay Varies by Sector

• Investment banks and global institutions pay the most, with substantial variable pay on top of base salary.
• Banks, building societies and insurers pay towards the upper end, reflecting dual regulation and complexity.
• Asset managers and wealth managers sit in the middle to upper range, with variable pay often significant at larger firms.
• Fintech, payments and crypto-asset firms pay competitively for experienced compliance and financial crime leaders, sometimes with equity in place of higher base pay.
• Consumer credit and smaller retail firms tend to pay towards the lower end, particularly where roles are combined.

Our sector pages cover each market in more detail: wealth managers, investment managers, consumer credit firms, insurers and MGAs, banks and building societies, payments and fintech firms, crypto-asset firms.

Bonuses, Deferral and Buy-Outs

At larger regulated firms, total packages for Senior Managers typically include annual bonuses of 15–30% of base salary, and at asset managers and investment banks total pay can exceed base by 50–100%. Where the Remuneration Codes apply, a significant proportion of variable pay may be deferred over several years and subject to malus and clawback. For control functions such as compliance, the MLRO and risk, variable pay shouldn’t depend on the performance of the business areas they oversee.

When a Senior Manager moves, unvested awards at their current employer are often the biggest obstacle. Buy-outs need to be discussed early, and at firms subject to the more detailed rules they may need to mirror the deferral and performance conditions of the awards they replace.

Common Pay Mistakes Firms Make

• Benchmarking against internal grades rather than the external market for approved Senior Managers.
• Ignoring the SMF premium for a role that carries personal regulatory accountability.
• Underestimating buy-outs for candidates with deferred awards.
• Comparing interim day rates with salary alone, without allowing for benefits, employer costs and flexibility.
• Tying control function bonuses to commercial targets, which undermines their independence.

We discuss the budget at the brief stage of every search, so expectations are aligned before any candidate is approached. For board and C-suite pay across wider sectors, Exec Capital publishes a detailed SMF salary guide from its executive search work.

Frequently Asked Questions

How much does a Head of Compliance earn in the UK?

A Head of Compliance holding SMF16 typically earns £85,000–£140,000 at smaller firms, £130,000–£220,000 at mid-size firms and £200,000–£350,000 at larger firms. Non-SMF heads of compliance in London typically earn £95,000–£150,000.

How much does an MLRO earn?

SMF17 MLROs typically earn £75,000–£120,000 at smaller firms, £110,000–£180,000 at mid-size firms and £160,000–£300,000 at larger firms. Fractional MLRO arrangements at smaller firms commonly cost £40,000–£90,000 a year.

What does a Chief Risk Officer earn?

SMF4 Chief Risk Officers typically earn £120,000–£180,000 at smaller firms, £170,000–£280,000 at mid-size firms and £250,000–£450,000 at larger firms, with total packages higher still at banks and insurers.

What are interim compliance day rates?

Interim compliance officers typically charge £400–£650 a day outside IR35, interim heads of compliance £600–£850, and approved interim SMF16 or MLRO holders £700–£1,100.

Do Senior Managers earn more than equivalent non-SMF roles?

Usually, yes. In our experience the premium for holding a Senior Manager Function is typically 15–30%, reflecting personal accountability, the approval process and the scarcity of approved candidates.

How often is this guide updated?

We review the figures regularly against current placement and offer data. The date of the latest review is shown at the top of the page.