Industry funds confirm CEOs earning over $1 million

At least two industry superannuation fund chief executives are receiving total salary packages in excess of $1 million, while at least two more are receiving over $800,000. 

That is the bottom line of answers to questions provided to the House of Representatives Standing Committee on Economics which has sought to interrogate a number of superannuation funds about the salaries of their chief executives and then draw comparisons with the wages earned by the average member of their superannuation funds. 

What the questioning, undertaken by the chairman of the committee, Victorian Liberal backbencher, Tim Wilson, has revealed is that among those funds that have so far responded, industry superannuation fund chief executives are paid anywhere between $588,000 and $1.1 million. 

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At the top of the tree is Ian Silk, the chief executive of the largest industry superannuation, AustralianSuper who is receiving a package of $1,111,234 but as high as this seems it needs to be measured against that of Hostplus chief executive, David Elia who is receiving a base package of $899,045 plus $221,979 in short-term bonuses. 

Then, too, there is Aware Super (formerly First State Super) boss, Deanne Stewart who is receiving a base package of $905,000 plus a performance bonus of $125,000 and HESTA chief executive, Debbi Blakey who is receiving $915,690 and REST chief executive, Vicki Doyle whose package was valued at $826,000 made up of a base of $646,330 and an annual bonus of $158,976. 

This then compares to CareSuper’s Julie Lander who received a comparatively modest package of $588,136. 

None of the superannuation fund chief executive salaries have been a secret, with each of them having met their regulatory obligations by reporting them within the fund’s annual statements and with some of them directing Wilson’s attention to those statement rather than spelling out the salary amounts out in answer to his questions. 

Wilson had asked each of the funds to advise the salary of their CEOs including any bonuses, and then asked that, “for each year of the past decade, please advise the: 

a. annual remuneration of the average worker who contributes to your fund 

b. average annual superannuation contribution from an employee to your fund 

c. multiple your CEO is remunerated compared to the annual remuneration of the average worker who contributes to your fund. 




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Comments

Comments

....nothing to see here, not for profit and all for the member's benefit... Lol
wait until they expose the salary and bonuses in IFM, ME bank etc ....it will all coming crashing down!

I hope Wilson is getting the same information about the CEOs of the retail super funds.

Yay, here comes union super's little fan boy, Richie Hedware!! Look at him stand up to those big bad bullies, retail super, anytime anyone ever dares ask a hard question around the issues imbedded in unionised super! Look at him deflect and throw wild aspersions against any other fund rather than aim to get facts about his sweet sweaty musky smelling union super pets. You go Dick and stand up tall!

Dim Joe(y), You keeping missing the action. I don't have skin in the industry funds game, but I do in retail funds. I want more in my pocket and not in the pockets of the retail funds CEOs and executives.

Ah, but it is okay to go to the union fund CEO's & exec's according to your posts, just not the nasty retail people? You go comrade! Funny how I have never in the past 5+ years seen a single negative or critical comment from you, Dick, against industry funds but rather complete excuses on their behalf or as per other comments, utter deflection to retail funds (like you've just done).

Sure, we all believe that you have utterly no affiliation with Union super or ISA, and also that you'll be leading Santa's sleigh this year instead of Rudolph!! Mind you, probably not beyond belief that for Xmas you will actually be bound up in leather harnesses with a bridle like mouthpiece inserted, major difference being the jolly fat man whipping you likely won't be St Nick, and the use of the carrot isn't to dangle in front of you :)

Thanks for the Fri afternoon amusement, always fun playing!! :) :)

Retail funds can pay whatever they want to...it comes out of the shareholder profits.
Industry funds are taking away from the mums and dads who after years and years of advertising believe their money is being managed by charities.

So mums and dads in retail funds have to be ok for their money going into shareholder profits and into excessive bonuses paid to executives.

How do you know that those "mum & dads" in retail are not shareholders themselves ?
How do you know that any bonuses paid are excessive and on what criteria are you measuring this assumption ?

Hedware, everyone is a mum and dad, even rich people! This mum and dad stuff is a red herring. What do the industry funds provide to shareholders, nothing thats right. What do the retail funds provide to shareholders? Returns, not only in dividends but from investments. The industry funds invest in the banks that run the retail funds to get returns for the members in the industry funds. Pretty hypocritical hey?

I didn't bring up the mums and dads fall back in the first place and so respond the that person.

But good question - do industry and retail funds have shareholders? The companies that run them might, but the actual funds themselves? Got any ideas?

Are you seriously asking these questions? These questions demonstrate clearly a very basic level of relevant education and experience. I'm guessing your Treasury.

Hedware, you really should have thought more before making that comment. Comments such as your imply that you hold certain views.
If you don't like this capitalist system of operating, can you please explain your ideal system please?

No socialist here. I want very competitive capital markets and that's why I want those retail funds performing better and costing less. I want them hiring the best and not their mates aka Wilsons. I want them acting above board so they can be trusted with capital and not losing money through paying penalties. I also believe in independent trustworthy professionals in financial advisory services (and not whinging ones).

You want and I will explain how to solve it
1) I want those retail funds performing better and costing less
Everyone wants higher returns and lower costs. Your mates at Industry Super if I was to believe their hype are delivering this and more.
There was a time when people selling high returns, low fees and no risk would be a sure warning sigh for the astute investor.
However, with Millions of $$$ in advertising securing the hearts and minds of the general public and keeping the media on side, Regulator, Treasury etc also believing the sales pitch then who is to question?
It is very easy for retail to achieve the same results as Industry Super and here is how it can be done - just for you Hedware.
1) Delist all the property in the portfolio and have them valued by a panel of keep independent valuers each year or so. If the values do not go up, don't employ that professional service provider next year. It does not matter this way what the large asset is, might be an Air Port etc but as it will never be listed on the market no one will ever know if when I say it is worth $1Billion, it might not be worth that at all.
2) Classify growth assets such as property into defensive assets.
You it seems Hedware have previously demonstrated a liking for this.
This is a great strategy as any investor or regulator who is smart enough to ask more questions of how the fund is achieving the returns, it will lead the investor to believe that the fund is doing it with little risk.
3) In order to keep the fees down, several strategies here.
Make sure the is a fixed dollar fee on all accounts. It does not have to be much but it is a very large % when you have lots of very small accounts. Also have a % based fee on FUM - this will get more money in on the larger accounts that way the large and small accounts are all paying a good fee.
Have insurance - get profit share.
Provide members services via members capital. Don't be silly and provide a service to then have to report the cost in the Admin Fee, don't be silly. Use members money and call it an Investment. If it needs more money from time to time, through more in from the members capital. Get the Valuers to value the things as such as Members Equity opps, not that, that's an Investment - sorry. Call it a New Paper, opps, bad example.
You get the idea.
4) Make sure there are plenty of new members.
That's easy - get the Industrial Awards system working for you.
Pay Unions to get employees to love the fund - oops bad example.
5) Make sure no one leaves the fund.
Easy, have a workforce of salespeople who work directly for you and under your direct control. General and Intra Fund advise is great for this.
Any member who things they are a little smarter and wants some personal advice, send them to the in house adviser (employed and directly controlled). Can charge a fee less than anything your competition is charging as you have another source of revenue they don't, fees from everyone to pay for all of this - easy. Oops, another bad example.

Now, the key to having assets over valued is it never matter unless people want their money back at the same time, so best to keep the SGC going up and up. Pay out the retiring with the higher SGC - could go on for another decade or two. Hope for no one to look and no liquidity calls - opps, bad example.

Now with Industry Super having achieve returns it seems better than their competition there is a fair chance all the unlisted assets are already over valued so the new unlisted asset pool in new retail super should be able to declare any returns above that of Industry Super for a good couple of decades to come - see how falls first.

Now obviously I don't believe in any of this at all Hedware and this is just a hypothetical discussions but - any warning signs for you Hedware?

Richie Rich - you are clearly on the union payroll and need to disclose your conflict.
Devil's A - spot on!!!!!

‘Not for profit’

lots of ladies in that list......gender pay gap or glass ceiling anyone?

You've raised a really good point GD. It would appear there is no "gender pay gap" nor "glass ceiling" when it comes to female CEOs of the industry fund sector. And what about squillionaire Mac Bank CEO Wikramanayake? She is the highest paid CEO in Australia. When you investigate various Board positions, there is a 'by special invitation only' club of women who hold positions on multiple boards, doing the musical chairs every so often, but never having their snout out of the trough. I have no problem with equality at all, but the myths perpetuated by the likes of the WGEA need to be called out.

It seems like gender diversity and equality has been forgotten within the appointments of the highest paid Industry Fund CEO's !
Only 2 males and then 4 females...
Shouldn't there be mandated gender quotas to make sure it's equal or did all these people achieve their appointments because they were the best person for the job ?

This is no different to the Labor Party deception that they are the Blue Collar party and represent the working man and woman.
Look at Bob Hawke, Paul Keating, Kevin Rudd, and many other ex Labor punters who all love the good life and yet convince their constituents they somehow have something in common.
This is because they know there is wealth to be had in convincing the masses to believe you and follow you....just like the Industry Super Fund/Labor & Union driven machine.
That is why they spend multi millions of dollars of members monies every year on advertising and member recruitment campaigns.
They wont disclose the advertising spend claiming it is commercially sensitive information!!.......but they are spending their member's money and wont tell them how much !!
It's all about building a large group of loyal and devoted followers....like China.
It gives you control and buying power.
The greater the numbers, the greater the volume of Intra Fund fees per member, the greater the income, the higher the CEO's remuneration.
Simple equation.
It's a bit like an asset based fee for the CEO's....the greater the asset value, the higher the remuneration.
These CEO's of Industry Funds have about as much in common with their membership as the ABC has with unbiased reporting and content.
The Trade Unions are beneficiaries of tens of millions of dollars every year from Industry Super through the re-direction of directors fees donated to Trade Unions and their associated entities.
If the directors do not want or wish to receive these fees then it should be mandatory the fees are held within the fund for the benefit of the members....not a Trade Union that the members may well not even be a member of.
Industry Super Funds are a massive money making venture....there are many snouts in this very big trough of money.
The misleading mantra of letting members believe the fund is always only for the members is simply a lie.

Don't forget that Welch witch, backstabbing Julia!

Interesting that the CEO's can earn a bonus, tied to what? Bringing in Fum?. Is their remuneration tied into FUM, because it seems like the bigger funds pay more in remuneration. How ironic, that this wouldn't stand up to the FASEA CoE.

Here we go....rem from an AFR report 16 Dec 2019.....
I'm loving how the one fund can be on the list 5 times. The punters out there need to know this is where their 9.5% is going!

UniSuper John Pearce CIO $1,728,817
Australian Super Mark Delaney CIO $1,627,325
First State Super Damian Graham CIO $1,329,042
C'wealth Super Corp Alison Tarditi CIO $1,266,594
HostPlus David Elia CEO $1,185,209
Qsuper Brad Holzberger (1) CIO $1,159,191
Australian Super Jason Peasley Head of Mid Risk $1,130,000
Australian Super Innes Mckeand Head of Equities $1,070,110
Australian Super Peter Curtis Group Exec, Finance/Ops $1,058,300
Australian Super Ian Silk CEO $1,055,995
QSuper Michael Pennisi CEO $1,018,307
SunSuper Ian Patrick CIO $1,000,061
HostPlus Sam Sicilia CIO $967,624
C'wealth Super Corp Peter Carrigy-ryan CEO $942,483
HESTA Debby Blakey CEO $941,773
Mine Super Harry Mitchell CEO $919,775
First State Super Deanne Stewart (2) CEO
SunSuper Scott Hartley CEO $873,211
Telstra Super Graeme Miller CIO $849,868
UniSuper Kevin O'sullivan CEO $849,320
REST Vicki Doyle CEO $816,178
Cbus David Atkin CEO $811,343

So the top 5 at Australian Super take home nearly $6Mill ($5,941,730) between them !!!!!!
This is the equivalent of 893 members at an average income of $70,000 each receiving 9.50% SG contributions for the entire year.
On that example it would be taking 893 members SG contributions just to fund the remuneration of the top 5 employees at Australian Super.
When you move away from the top 5, how many employees are then being paid $500k,$400k, $300k, $200k ????????????
How many employees SG super contributions does it really take to fund the total employee remuneration costs of Australian Super or any of these Industry Super funds ????????
If this isn't a clear indication that the ethics and morality of what these super funds promote as " all profits go to members" etc etc......its because its only the profits after the snouts have sucked the dear life out the fund to pay themselves first.
This is a rort and many people are getting wealthy at the expense of the people they claim to represent.
No wonder ex-Labor politicians line up to get on board the money bus.

This is an interesting list given the previous comments about equality and gender diversity. Highlights that sample size is important and full facts more generally.

the last time I rang up these funds I asked how do I provide instructions......they told me via facks or facts machine only????...then I asked about transferring funds....they told me via a Check ???.... Could someone please tell me what a Check is or what this so called Facts Machine does....I was just trying to start a reversionary pension up for a widow and they told me it would take at least 6 months, but it might be quicker if I Facts it in??. Perhaps these CEO's could take a pay cut and provide some education around these state of the art/ leading edge new communication tools.

Industry super funds are trumpeted as being 'not-for-profit'. Translated, this means the members share the scraps while the union appointed snouts in the trough get to pocket the profits.

I am no industry fund supporter, but the CEO of a large organisation like this should be earning $1m

given the results delivered by these major industry funds, compared to a lot of bank funds, sounds like reasonable value and return of their board's investment in these people..

Well said, Yogi. At the BRC REST admitted to breaching the regulation of not informing members of reasons for the Trustee decision 184 times in an 18 month period. REST supposedly admitted this was due to a lack of technology. I think REST should have been hauled over for not putting the best interest of members first by being able to keep members informed. The reason, I think, would be so the members are not informed and their best members are those not engaged with their superannuation and don't ask questions. I wrote to REST on 7/8/2019 and asked why the Trustee gave half my deceased son's super and death benefit to someone other than his nominated beneficiary (and his Will). 90 days to reply was up on 5/11/2019. No answer from REST. I went to ASIC who did answer and told me to lodge a misconduct complaint with ASIC which I did. My claim was noted by ASIC. I went to AFCA twice. The 2nd time REST told AFCA they couldn't answer because of privacy of the person REST gave my son's super and DB to. There is no accountability and nowhere for anyone to go to complain. All of these bodies like ASIC, APRA and AFCA give the impression we have options to complain but they are useless to get a resolution. Nice people, helpful but useless in the end. AFCA eventually told me as a beneficiary I can't put a complaint to them, only the person who was given Probate can dispute. Why Probate when super has nothing to do with a Will?? Why would I put my other son, who was executor of my deceased son's Will, through this? Some beneficiaries of Super don't know the person who was granted probate. This is the biggest con, the biggest fiasco, the biggest rort. All of those associated with this ponzi scheme are only building their own empires. Remember Simon Crean's speech in 1981 "this is the first step towards socialism". You people, who understand all of this, should be writing to the newspapers, sky news etc where Australian workers get to see ur comments not in Money Management where you preach to the converted. Shut down compulsory superannuation. It will only get worse as the Industry Funds control all finance in this country. Everyone has seen the move to socialism more and more under Chairman Dan in Victoria. Wait until these Funds control all finance. Do any of you think you will be able to withdraw yr money then? Once yr money goes into the black hole called Superannuation the iron fist of a Superannuation Fund owns it, not you.

Amazing isn't it how quiet the likes of Adele Ferguson are on this type of industry fund malfeasance, and yet how openly, vitriolically and regularly she would write about financial planners and the banks that made us appear to be criminals. Adele, you awake?

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