Rising CISO Salaries & Tight Budgets Drive Virtual CISO Adoption

Chief Information Security Officers have never been more important to an organization’s success. Their responsibilities span far beyond traditional security operations and now include risk governance, digital transformation, compliance strategy, incident readiness, and cross-functional alignment with technology and business stakeholders. Companies recognize this expanded scope, and the data proves it. CISO compensation continues to rise sharply, even as overall security budgets level off or grow at a slower pace.

This widening gap between what organizations invest in their top cybersecurity leaders and what they invest in the broader security program is creating new operational challenges. It is also reshaping how companies think about leadership structures and support models. One outcome is the increased adoption of Virtual CISO services. Virtual CISO programs give organizations access to strategic leadership and hands-on expertise while maintaining the flexibility to scale support up or down. For some companies, a vCISO is the primary security leader. For others, the vCISO supplements an in-house CISO who needs additional bandwidth or specialized capabilities.

This blog explores why CISO salaries are climbing, what the latest research says about budget trends, and how these forces are influencing the rise of the Virtual CISO model.

CISO Compensation Accelerates Across Industries

The latest data from IANS Research and Artico Search confirms that cybersecurity leadership continues to command strong financial packages. Across more than 550 CISOs surveyed in the United States and Canada, compensation increased by an average of 6.7% in 2025. This rise is particularly notable when compared to overall security spending, which grew only 4% during the same period.

Organizations are clearly signaling that they value strategic security leadership. Several factors contribute to this sustained increase in CISO pay.

Growing Influence and Executive Visibility

CISOs are now integrated into discussions that influence revenue, brand reputation, and corporate risk. Many are responsible for guiding enterprise use of artificial intelligence and advanced analytics, two areas that fundamentally reshape how organizations manage data and risk. This expanded scope has moved CISOs deeper into corporate leadership conversations, which naturally affects compensation.

Equity Gains Reflect Long Term Value

Equity compensation is growing faster than base salary for many CISOs, a trend highlighted in multiple reports. Companies want long term commitment from security executives who understand the business, the technology stack, and the risk landscape. Equity participation also signals how closely security leadership is tied to organizational growth and continuity.

Expanded Perks and Legal Protections

More than 70% of CISOs now receive executive level perks such as directors and officers insurance. This reflects the heightened legal and regulatory exposure associated with the job. CISOs face pressure from regulators, shareholders, and boards, and organizations are responding by offering protections and benefits that acknowledge the seriousness of that responsibility.

Variability in Pay Remains Wide

While overall compensation has risen, the range is significant. The top one percent of CISOs earn more than $3.2 million a year. CISOs in technology and financial services consistently see the highest compensation levels, while those in education and public sector organizations tend to earn less. Factors such as team size, budget responsibility, industry, and tenure all play meaningful roles in determining pay.

Across the board, the message is consistent. Organizations are willing to invest heavily in security leadership because the potential cost of getting cybersecurity wrong continues to rise.

Security Budgets Lag Behind Leadership Costs

Although CISO compensation is increasing, security budgets are not following the same trajectory. The latest benchmarking reports show that overall security spending is growing at its slowest rate in five years. Staffing growth is slowing as well. Many organizations planned significant hiring in previous years but have now shifted to cost containment, reprioritization of spend, or restructuring of their teams.

This is creating a fundamental challenge for CISOs. They are being asked to address more risk, manage more technology, and satisfy more stakeholders, but without proportional increases in staff or tools. When budgets tighten, the pressure shifts toward efficiency and creative resourcing.

Several realities make this trend particularly challenging.

Threat Landscapes Continue to Expand

Cloud adoption, hybrid work environments, third party dependency, and the rapid rise of generative AI all introduce new attack vectors. These risks require ongoing investment in monitoring, governance, and proactive defense. Even if companies want to strengthen their security posture, many struggle to justify budget increases that match the scope of modern threats.

Internal Teams Feel Strain from Competing Priorities

As cyber teams are asked to do more with fewer resources, overload becomes a real concern. Analysts and engineers face continuous demands across compliance tasks, incident investigations, vulnerability management, and business enablement. Without added staff or specialized support, these teams can quickly become overwhelmed.

Boards Expect Clear Progress

Organizations feel pressure from regulators, insurers, and shareholders to demonstrate measurable improvements in security maturity. CISOs are expected to show year over year progress, which requires careful planning, project execution, and governance structure. Achieving this level of maturity without additional support is difficult, especially when teams are understaffed.

Hiring Challenges Persist

The cybersecurity talent shortage remains a barrier. Even when organizations are willing to add new staff, attracting experienced professionals can be difficult due to high competition and rising salary expectations. Virtual CISO services help bridge these gaps by providing immediate access to seasoned leadership and a team of specialists.

Budget constraints are not diminishing the importance of cybersecurity. They are changing how organizations manage it. This shift is a major factor driving the adoption of virtual leadership models.

Why Virtual CISOs Are Becoming a Preferred Option

Virtual CISO adoption is rising because it aligns with the realities of today’s business environment. It provides flexibility, cost efficiency, and immediate access to experience that would otherwise take months or years to build internally.

Organizations adopt vCISO services for different reasons depending on their maturity, staffing model, and strategic goals.

Support for Growing or Resource Constrained Security Programs

Many organizations have strong IT teams but lack the strategic cybersecurity leadership needed to align controls, policies, and risk management with business objectives. A vCISO provides that direction without the cost of an additional full time executive.

Partnership with an Existing CISO

Some companies already have an experienced CISO but need additional capacity or coverage. A vCISO can support program development, vendor assessments, risk register management, board reporting, and major initiatives. This helps reduce leadership burnout and increases execution speed.

A Bridge During Leadership Transitions

Recruiting a CISO can take months. Organizations cannot afford to leave the role unfilled. Virtual CISOs offer continuity, governance stability, and support for ongoing projects until a permanent hire is made.

Access to Specialized Expertise

Compliance frameworks, cloud security architecture, and industry specific regulations often require deep specialty knowledge. Virtual CISO teams include practitioners who can address these needs in a focused and efficient manner.

Improved Cost Control

A virtual model allows organizations to scale hours and support based on workload and priorities. This creates predictable and optimized spending, something that traditional hiring models cannot easily deliver.

The versatility of the model is what makes it effective. Organizations can use a vCISO as their primary security leader, as a long term strategic partner, or as an extension of their existing leadership.

How Virtual CISO Programs Strengthen Security Maturity

A well structured vCISO program helps organizations improve maturity and reduce risk by providing clear strategy, strong governance, and consistent oversight. The support often includes:

• Security program assessments and gap analysis
• Policy development and updates
• Vendor risk management
• Incident response planning and tabletop exercises
• Staff training and awareness programs
• Framework alignment for NIST CSF 2.0, CIS, SOC 2, HIPAA, CMMC, and ISO 27001
• Executive and board reporting
• Long term cybersecurity roadmaps

This work helps organizations establish the foundation for a resilient security program and maintain progress over time.

A Practical Path Forward for Today’s Cybersecurity Landscape

Organizations face a challenging reality. Their cybersecurity needs are growing in volume and complexity, their leadership costs are rising, and their budgets often remain flat. Virtual CISO programs provide a practical and efficient way to manage these competing pressures.

Companies can maintain access to high level security leadership while receiving the operational support needed to move strategies forward. The model strengthens organizations that already have a CISO and supports those that are building a program for the first time. As long as cybersecurity risks continue to evolve, the need for adaptable leadership structures will only increase.

Virtual CISO Guidance from Compass IT Compliance

Compass IT Compliance offers a Virtual CISO program built to support organizations in a flexible and results driven way. Some clients rely on our vCISO team to fully lead their security program. Others use our expertise to supplement an internal CISO who needs additional support or specialized knowledge. In both scenarios, we deliver practical guidance, governance structure, and strategic direction tailored to each organization’s maturity, industry, and risk profile.

Our team of experienced security leaders helps organizations develop roadmaps, improve compliance, strengthen operational processes, and build confidence in their cybersecurity posture.

If you would like to learn more about Compass’s Virtual CISO services, contact us today.