Exploring the Factors Behind Slow CISO Pay Increases

CISO Pay Increases Are Slowing – a Look Behind the Figures

Introduction

The latest survey conducted by information security advisory specialist IANS Research and recruitment firm Artico Search reveals that Chief Information Security Officer (CISO) compensation levels are growing at a slower rate than in previous years. The survey, which queried over 600 security executives from US and Canadian companies of varying sizes, sectors, and locations, provides insights into compensation trends and budget constraints within the industry. However, it is important to approach survey results cautiously and not take them at face value. While compensation is a significant factor, it is not the sole driver for CISOs considering job changes.

Compensation Trends

According to the survey, the average CISO total compensation increase was 11%, down from 14% the previous year. Furthermore, 20% of CISOs did not receive a raise, double the rate from the prior year. The survey also revealed a decline in retention and equity packages, with only 12% and 8% of CISOs receiving these benefits, respectively.

Nick Kakolowski, Senior Research Director at IANS, highlights that while compensation increases are still seen at the upper levels of the market, they are not extending to the middle and lower quartiles. This discrepancy has led 75% of respondents to consider a job change within the next 12 months.

Factors Influencing Compensation

While compensation is a significant factor in job changes, it is not the sole driver. The 2023 Security Budget Benchmark Report, produced by the IANS/Artico partnership, reveals that security budgets have increased by 6% after experiencing double-digit growth in previous years. However, more than one-third of CISOs reported flat or declining security budgets year-over-year. As more than one-third of security budgets are typically dedicated to staff compensation, tighter budgets directly impact CISO compensation.

Steve Martano, a partner and executive recruiter at Artico Search, suggests that until more options become available in the market, CISOs should focus on enhancing their marketability by strengthening their personal brand, developing business acumen, and improving their executive presence. These factors can position them strongly with prospective employers.

Survey Limitations and Additional Considerations

While the survey provides valuable insights into compensation trends, it has certain limitations. It does not adequately cover the compensation differences between small firms and large organizations, nor does it explore the impact of additional responsibilities on compensation. For instance, it remains unclear whether CISOs who also serve as board members or hold combined roles such as CISO/CTO or CISO/CIO receive different compensation.

The survey respondents are described as “security executives,” but it does not specify whether this includes Chief Security Officers (CSOs), who may have additional responsibilities in physical security. These additional responsibilities might warrant higher compensation.

The survey findings emphasize the importance of not relying solely on survey results when analyzing compensation trends. It is crucial to engage in individual conversations with CISOs and explore their specific roles, responsibilities, and experiences, as there can be significant variations among different types of CISOs.

Editorial: Balancing Compensation and Budget Constraints

The slowdown in CISO pay increases reflects the challenges organizations face in balancing the need to attract and retain top talent while managing budget constraints. As cybersecurity threats continue to evolve and become more sophisticated, organizations must prioritize investments in their security programs. This includes investing in the right personnel, such as qualified and experienced CISOs, who play a crucial role in driving effective cybersecurity strategies.

However, the survey results also highlight the strain on security budgets, with one-third of CISOs reporting flat or declining budgets. This constraint impacts the ability of organizations to offer significant compensation increases to their CISOs. Organizations must find ways to optimize their security budgets and allocate resources strategically to address emerging threats and retain top talent.

Internet Security Implications

The slowdown in CISO pay increases may have implications for internet security. As CISOs are responsible for ensuring the security of organizations’ digital assets and infrastructure, it is essential that they feel adequately compensated and motivated in their roles. A lack of competitive compensation may lead to a higher turnover rate among CISOs, potentially impacting organizational security.

Organizations should consider the potential consequences of providing inadequate compensation to their CISOs. Beyond financial implications, the loss of experienced security leadership can leave organizations vulnerable to cyber threats, as new CISOs may take time to acclimate to the specific security needs of the organization.

Advice for CISOs and Organizations

For CISOs

CISOs facing limited compensation increases amid tight security budgets should actively work on strengthening their marketability. This includes enhancing their personal brand, developing a strong business acumen, and improving their executive presence. These qualities can set them apart in a competitive job market.

CISOs should also engage in networking and professional development opportunities to expand their industry connections and stay updated on emerging cybersecurity trends. By continuously improving their skills and knowledge, CISOs can demonstrate their value to prospective employers and negotiate competitive compensation packages.

For Organizations

Organizations must recognize the importance of attracting and retaining top talent in cybersecurity leadership roles. They should strive to offer competitive compensation packages that reflect the level of responsibility and expertise required of CISOs.

Additionally, organizations should consider alternative ways to optimize their security budgets without compromising on talent acquisition and retention. This may involve leveraging technology solutions to streamline security operations, outsourcing certain security functions to specialized providers, or implementing cost-effective training programs to develop existing talent.

Finding the right balance between compensation and budgetary constraints is crucial for organizations to strengthen their cybersecurity posture and protect their digital assets.

Conclusion

The slowdown in CISO pay increases highlighted by the survey raises important considerations for both CISOs and organizations. While compensation is a significant factor for CISOs considering job changes, it is not the sole driver. Organizations must find ways to optimize their security budgets and allocate resources strategically to attract and retain top security talent.

Additionally, it is essential to approach survey results cautiously and consider individual circumstances and job descriptions when analyzing compensation trends. Engaging in conversations with CISOs and understanding their specific roles and responsibilities can provide deeper insights into the factors influencing compensation and job satisfaction in the cybersecurity industry.