How much do your super fund trustees get paid?

Note: This article includes the remuneration data for trustee boards and executives, and related party transactions, for major industry super funds (Cbus, Equip, HESTA, AustralianSuper,CareSuper and FIRST Super). Article last updated 12 December 2013.

One of Australia’s largest super funds, Cbus, was the first super fund to disclose trustee and executive pay, individually, in salary and other financial benefits. This practice has continued for a second year, and fic other super funds have also led the way, disclosing this information for the previous two financial years.

Only six super funds have demonstrated leadership in disclosing what trustees get paid – two years before the law required them to do so. In some instances, these progressive super funds have also disclosed executive pay. A few more super funds have disclosed these specific figures in the full financial accounts. The full financial accounts however are not sent out to fund members, but can sometimes be accessed via a super fund website, or by requesting a copy of these accounts from the super fund. Some super funds publish remuneration ranges without disclosing specific pay of super fund trustees. It is disappointing that most of the 300 large super funds in operation have to be compelled to disclose such information, effective from 1 July 2014.

From 1 July 2014, all super funds must disclose how much super fund trustees get paid. This information must appear on the relevant super fund’s website, and in the super fund’s annual report.

Background: Originally, the remuneration disclosure requirements were to commence from 1 July 2013, and then the commencement date was deferred until October 2013. Now all super funds must disclose trustee remuneration and executive remuneration on fund websites from July 2014. If you rely on your super fund’s annual report for this type of information (rather than visiting your super fund’s website), than you will be waiting until your super fund publishes its 2014/2015 annual report in late 2015.

This article contains trustee pay, executive remuneration and related party transactions for the following super funds

From our research, apart from the six super funds above, we are not aware of any other super funds disclosing such detailed information in the annual report sent out to fund members. If you are aware of other super funds disclosing the amount individual super fund trustees get paid and individual super fund executives get paid, then please email SuperGuide, and we will update this article.

Important: SMSF trustees cannot accept payment for acting as trustee of a self-managed super fund.

Note: Many super funds now permit some access to official financial accounts. A fund member can request access to the full audited financial accounts from the super fund directly, and an increasing number of super funds provide the audited accounts on the fund’s website.

What’s the big secret?

As marketing and communication tools, the annual reports to fund members are useful for fund members to get a better grasp of what is happening to their superannuation savings, and to highlight major changes to the super laws that may affect fund members. Many years ago I was involved in helping to write these reports and they certainly serve an important role in informing and educating fund members. Such reports however do not function as financial analysis tools for consumers, journalists and rating companies to analyse the operational effectiveness of the organisation.

The major gap in the reports produced by most super funds is that there is no information available on what actually happens to the fees that these super funds charge to members. The information supplied in the current version of annual reports does not enable fund members to decide whether the super fund can justify the level of fees when compared with other super funds operating in the same space. Rating companies help fill this information gap, but members of super funds should at least receive a fee breakdown, and where those fees end up, for their own super fund.

Note: We will not be publishing any reader comments that seek to criticise the level of pay a particular super fund director or executive has received. SuperGuide’s intention in reproducing the remuneration of directors and executives is not to make them a target for personal criticism, but to help fulfil the purpose of full disclosure and to expand the discussion on greater transparency. High-level roles do command high incomes because large super funds need to ensure they secure suitably skilled and qualified staff, and super funds do compete with other financial organisations for quality employees. On that point, whether retail super funds follow the lead of the industry funds listed is still under question, due to the complexity of the remuneration arrangements for retail super fund trustees. How the retail super funds decide to value the position of trustee when looking at the total salary of a trustee bank executive should be interesting, especially when the salaries of banking executives can be 7-figure amounts.

Cbus remuneration: 2012/2013 annual report

Congratulations Cbus, industry fund for the building and construction industry, for taking a leadership role in being the first super fund (occurred in 2011/2012 year) to disclose executive and director pay, and also for disclosing related party and sponsorship arrangements.

Cbus looks after $23 billion of retirement savings for more than 700,000 Australians. The details of salary levels for Cbus executives and trustee directors, for the 2012/2013 year, are set out below. The remuneration data is extracted from the 2012/2013 Cbus annual report.

Table 1: Cbus top executives – total remuneration packages
Executive Position Total remuneration packages
David Atkin Chief Executive Officer (CEO) $539,572
Michelle Boucher Executive Manager, Marketing and Communications $250,000
Maria Butera Executive Manager, Workplace Distribution $258,422
Trish Donohue Executive Manager, Investment Management $408,285
Kristian Fok Executive Manager, Investment Strategy $500,000
Johanna Neilsen Executive Manager, People & Culture $184,836
Stephen Spiller Executive Manager, Strategy and Operations $242,649
Angela Thurstans Executive Manager, Governance and Risk $242,649
Keith Wells-Janz Executive Manager, Finance $288,370
Table 2: Cbus trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
Steve Bracks (chair)^ ACTU Director $111,202
John Dawkins Independent Director $111,202
W Harnisch Master Builders Association (MBA) MBA $91,055
J Haskins MBA Director $55,837
P Kennedy MBA Director $95,417
G Thompson AMWU AMWU $71,265
S Benyon MBA Director $51,475
G Kearney ACTU ACTU $49,240
R Mallia CFMEU CFMEU $51,475
A McDonald^ MBA Director $47,113
C Melham AWU AWU $49,347
J Murray^ MBA Director $62,434
D Noonan^ CFMEU CFMEU $57,965
F O’Grady CFMEU CFMEU $33,706
P Smith MBA Director $58,072
P Tighe MBA CEPU $53,709
Alternate Director
T Ayres AMWU AMWU $2,234
Total director fees     $1,052,755

^These Cbus directors also received additional remuneration from Cbus subsidiary Cbus property with remuneration as follows: S Bracks ($85,036), Dave Noonan $85,036, but paid to the CFMEU), John Murray ($85,036), Anthony McDonald ($85,036).

*Fees paid personally to directors (8), or to the MBA (1), or to various unions (in relation to 8 of the directors).

Related parties: At 30 June 2013, Cbus had relationships with the following service providers:

  • The trustee of Cbus received $1.236 million from the super fund for administration and financial services.
  • Cbus has a share in asset consultants, Frontier Advisors, although specific percentage was not disclosed. Cbus paid Frontier $1.32 million in consulting fees.
  • Cbus owns 17.95% of administration services company, SuperPartners, and this company provided administration services to Cbus costing $54 million in fees.
  • Cbus own 16.1% in Industry Super Holdings which includes subsidiaries, Industry Funds Management (IFM looks after $4.4 billion of Cbus’s investment pool, and level of fees is not disclosed), Industry Fund Services (IFS provides financial planning services costing $3.64 million), Industry Fund Services (IFS received $3.64 million in consulting fees), Insurance Broking (IFSIB provides insurance services, and received $531,000 in brokerage fees), and Industry Super Network (ISN provides marketing, advocacy, policy development and research services to Cbus).Cost of services provided by IFN not disclosed in annual report.
  • Cbus owns 16.1% of ME Bank, and ME Bank manages the Super Member Home Loans program and the Super Business Loans program through ME Super Loans Trust. Cbus holds $340 million in the SLT program, and $162 million in negotiable certificates of deposit and $75 million in cash with ME Bank.
  • Industry Fund Investments is a wholly owned subsidiary of Industry Fund Services, and Trustee of AUSFUND, the fund’s eligible rollover fund.
  • Cbus owns a share of ISPT, which is the trustee and manager of unlisted direct investment property trusts for the super fund worth $780 million, and the level of fees that ISPT received from Cbus is undisclosed. ISPT also provides management services to IGIPT (trustee of ISPT Grosvenor International Property Trust).
  • Cbus owns a share in Hastings Funds Management Utilities of Australia.
  • Cbus owns United Super Investments which is the ultimate holding company for various entities, including Australian Super Developments.

At 30 June 2013, Cbus directors had relationships with the following service providers:

  • Cbus CEO, David Atkin is a director of Industry Super Network, and director and chair, Steve Bracks is also a director of ISN.
  • Cbus director, P Tighe, is a Cbus representative member on IFM investment advisory board.
  • Cbus CEO, David Atkin, is a director of Frontier Advisers and Cbus received $15,000 in director’s fees.
  • Cbus director, F O’Grady, is also a director of ISPT.
  • Cbus director, J Haskins, is also a director of UTA.
  • Cbus CEO, David Atkin and Cbus CFO K Wells-Jansz are directors of United Super Investments.
  • Cbus directors David Noonan and John Murray are also directors of Australian Super DevelopmentsAustralianSuper’s deputy CEO and Chief Investments Officer, Mark Delaney, was also director of ISPT and director of IGIPT. Director fees not disclosed.
  • Cbus Property, a wholly owned subsidiary of Cbus has entered numerous related party transactions. See 2012/2013 year Cbus financial accounts for details.

Note: Cbus wholly owns Cbus Property and the board remuneration for this company is set out in the table below.

Table 3: Cbus property trustee board and board committee fees
Trustee Director Related organisation Fees* paid to Total fees paid
Mark Ford (Chair) Independent Director $232,520
Ian Costley Independent Director $109,617
Allan Davison Independent Director $109,617
Steve Bracks Cbus Director $85,036
Dave Noonan Cbus CFMEU $85,036
John Murray Cbus Director $85,036
Anthony McDonald Cbus Director $85,036

Equip remuneration: 2012/2013 annual report

Equip looks after $5 billion of retirement savings for more than 51,000 Australians. The details of salary levels for Equip executives and trustee directors, for the 2012/2013 year, are set out below. The remuneration data is extracted from the 2012/2013 Equip annual report.

Table 4: EquipSuper top executives – total remuneration packages
Executive Position Total remuneration packages
Danielle Press Chief Executive Officer (CEO) $550,273
Michael Strachan Chief Investment Officer $729,338
John Rodd Chief Financial Officer $276,000
Philippa Marshall Group General Counsel and Company Secretary $330,900
John Farrington Officer – Corporate Relationships $299,160
Justin Sadler Officer – Member Relationships $299,160
Geoff Brooks Executive Officer – Strategic Marketing and Communication $212,874
Sarah Guthleben* Executive Officer – People and Culture $186,200*

*Remuneration for 4 days per week

Table 5: EquipSuper trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
Andrew Fairley (chair) Independent Director $135,509
J Azaris Not disclosed (member director) Not disclosed $79,046
B Beeren Not disclosed (employer director) Not disclosed $67,754
T Birkbeck Not disclosed (member director) Not disclosed $67,754
G Haden Not disclosed (employer director) Not disclosed $82,553
R Jervis-Read Not disclosed (employer director) Not disclosed $72,459
K Kelly Not disclosed (member director) Not disclosed $12,234
J O’Neill Not disclosed (member director) Not disclosed $67,754
A Pickering Not disclosed (employer director) Not disclosed $84,694
T Swingler Not disclosed (employer director) Not disclosed $40,807
Total director fees     $695,766

Related parties: The related party transactions information is located in Equip’s audited financial accounts, rather than the super fund’s annual report. At 30 June 2013, Equip had relationships with the following service providers:

  • The trustee of Equip received $24.48 million in fees from Equip.
  • Equip paid Equipsuper Financial Planning $1.177 million in service fees.
  • Equip CEO Danielle Press is a director on the board of Equipsuper Financial Planning. Director fees are not disclosed.
  • Equip CFO John Rodd is a director on the board of Equipsuper Financial Planning. Director fees are not disclosed. 

HESTA remuneration: 2012/2013 annual report

HESTA looks after $25 billion of retirement savings for 760,000 Australians. Set out below is the remuneration data and related party information extracted from the 2012/2013 HESTA annual report. HESTA has not disclosed the remuneration packages for its top executives (apart from income ranges without identifying individuals). The super fund however has reported comprehensively on related party transactions.

Table 6: HESTA trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
A C Emslie (Chair) Independent Director $105,058
B H Holmes (Deputy Chair) NSW Nurses & Midwives’ Association (NSWNMA) (employee director) NSWNMA $60,110
R N Royle (Deptuy Chair) APHA (employer director) Director $45,105
J A Bonnington Catholic Health Australia (employer director) Director $44,365
Y M Chaperon Australian Nursing & Midwifery Federation (ANMF) (employee director) ANMF $39,035
L Darmanin ASU (employee director) ASU $10,698
R Kelly Not disclosed Medical Scientists Association of Victoria $11,260
T D Lyons ACTU (employee director) ACTU $36,913
V J Lyons Leading Aged Services Australia (employer director) Director $18,188
E R Mohle Not disclosed (employee director) Queensland Nurses’ Union $20,271
M S O’Halloran ACOSS (employer director) Director/Welfare Rights Centre $16,152/$22,000
P H Power AHHA (employer director) Director $38,535
K L Shay United Voice (employee director) United Voice WA $19,194
A J Smith ACAA (employer director) AJ&BJ Smith P/L $20,945
D Smith ASU (employee director) Australian Services Union $29,323
L Williams HSU (employee director) Health &Community Services Union $37,733
K Zimmerman ACSA (employer director) Director $39,375
Total director fees     $614,260

*Fees paid personally to directors, or to various associations, or to various unions

Related parties: At 30 June 2013, HESTA had relationships with the following service providers:

  • HESTA has a 30% share in asset consultants, Frontier Investments and HESTA paid Frontier $2.17 million in fees. The chair of HESTA, Angela Emslie, is also a director of Frontier Investments, and she received $12,000 in director fees from this entity.
  • HESTA owns 17% of administration services company, SuperPartners, and this company provides administration services to HESTA (cost of services not disclosed).
  • HESTA owns 16% in Industry Super Holdings which includes subsidiaries, Industry Funds Management (IFM looks after $4 billion of HESTA’s investment pool), Industry Fund Services (IFS provides financial planning services to HESTA members), Industry Fund Services Insurance Broking (IFSIB provides insurance services to HESTA), and Industry Super Network (ISN provides marketing, advocacy, policy development and research services to HESTA).Cost of services provided not disclosed in annual report.
  • HESTA owns 16% of ME Bank, and ME Bank manages the Super Member Home Loans program and the Super Loans Trust. HESTA had $308 million in cash held with ME Bank, and $15 million in subordinated notes.
  • HESTA owns 3.8% of ISPT, which is the trustee and manager of four unlisted direct investment property trusts which HESTA invests in ($1.2 billion). ISPT also provides management services to IGIPT (trustee of ISPT Grosvenor International Property Trust).

At 30 June 2013, HESTA directors had relationships with the following service providers:

  • HESTA’s chair, Angela Emslie is partner of Garry Weaven. Garry Weaven is on the board of ISH, ME Bank and Chair of IFM.
  • Anne-Marie Corboy, CEO of HESTA, is a director of Industry Super Network, a subsidiary of ISH.
  • Klaus Zimmerman, a director of HESTA, is also a director of ISPT and IGIPT
  • Anne-Marie Corboy, CEO of HESTA, and director of ISN, is also an alternative director of ISPT and IGIPT.

AustralianSuper remuneration: 2012/2013 annual report

AustralianSuper looks after $65 billion of retirement savings for 2 million Australians. Set out below is remuneration data extracted from the 2012/2013 AustralianSuper annual report.

AustralianSuper has not disclosed related party transactions in the annual report, but made this information available on the fund’s website, via the fund’s audited financial statements.

Table 7: AustralianSuper top 5 remunerated executives
Executive Position Total remuneration packages
Ian Silk Chief Executive Officer (CEO) $611,339
Mark Delaney Deputy CEO and Chief Investments Officer $776,765
Peter Curtis Head of Investment Operations and Service $494,018
Innes McKeand Head of Equities $491,269
Jason Peasley Head of Infrastructure $494,018
Table 8: AustralianSuper trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
E Rubin (former Chair) ACTU (member director) Director $137,214
H Ridout (current Chair) Ai Group (employer director) Director $58,658
P Howes (Deputy Chair) ACTU (member director) AWU $70,456
P Bastian ACTU (member director) AMWU $10,654
L Di Bartolomeo Ai Group (employer director) Director $40,135
B Daley ACTU (member director) United Voice $76,015
J Ingram AiGroup (employer director) Director $97,848
J Lawrence ACTU (member director) Director $29,199
S McGurk ACTU (member director) Trade & Labour Council of WA $54,186
D Oliver ACTU (member director) ACTU $33,020
G Pinnell ACTU (member director) ACTU $6,867
T Poole Independent Director $119,205
A Terry Ai Group (employer director) Director $44,498
G Willis Ai Group (employer director) Director $85,627
Alternate Directors
N Apple ACTU (member director) AMWU $32,392
P Burn Ai Group (employer director) Ai Group $32,392
L O’Brien ACTU (member director) AWU $17,588
G Stamas Ai Group (employer director) Director $11,452
D Whiteley ACTU ACTU $15,814
Non-Director Committee Members      
G Ashton n/a Director $26,160
M Nicolaides n/a AMWU $11,452

*Fees paid personally to directors, or to various associations, or to various unions

Related parties: At 30 June 2013, AustralianSuper had relationships with the following service providers:

  • The trustee of AustralianSuper is owned by the Australian Industry Group and Australian Council of Trade Unions (ACTU) Super Shareholdings. The trustee received $5.45 million in service fees. The Australian Industry Group was paid $216,000 and the ACTU paid $207,000 for advertising and marketing.
  • AustralianSuper has a 31% share in asset consultants, Frontier Advisors. AustralianSuper paid Frontier $1.51 million in consulting fees.
  • AustralianSuper owns 28.7% of administration services company, SuperPartners, and this company provided administration services to AustralianSuper costing $129 million in fees.
  • AustralianSuper owns 32.9% in Industry Super Holdings which includes subsidiaries, Industry Funds Management (IFM looks after $22 billion of AustralianSuper’s investment pool, and charges $47 million in fees), Industry Fund Services (IFS provides financial planning services), Industry Fund Services Insurance Broking (IFSIB provides insurance services), and Industry Super Network (ISN provides marketing, advocacy, policy development and research services to AustralianSuper).Cost of services provided not disclosed in annual report.
  • AustralianSuper owns 33.1% of ME Bank, and ME Bank manages the Super Member Home Loans program and the Super Loans Trust. AustralianSuper holds $272 million in cash and short-term deposits with ME Bank, and ME bank received $1.238 million in fees.
  • AustralianSuper owns 15.4% of ISPT, which is the trustee and manager of unlisted direct investment property trusts for the super fund worth $3 billion, and ISPT received $11.3 million in fees. ISPT also provides management services to IGIPT (trustee of ISPT Grosvenor International Property Trust).
  • AustralianSuper owns 33.3% in The Free News Pty Ltd, the owner of online news publication,The New Daily.

At 30 June 2013, AustralianSuper directors had relationships with the following service providers:

  • Ian Silk, CEO of AustralianSuper is a director of Industry Super Network (a subsidiary of ISH, which is a third-owned by AustralianSuper). Director fees not disclosed.
  • An alternate director of AustralianSuper, David Whitely, is also an employee of Industry Super Network.
  • Non-director committee member of AustralianSuper, Geoff Ashton, was Chair of the board of Frontier Advisers (which is nearly a third-owned by AustralianSuper). Director fees not disclosed.
  • Non-director committee member of AustralianSuper, Geoff Ashton, was also a director of SuperPartners (AustralianSuper owns 28.7% of this administration services company, which provides services to AustralianSuper)
  • AustralianSuper director Brian Daley was a director of ISPT and also a director of IGIPT. AustralianSuper director, Nixon Apple was an alternate director of ISPT, and of IGIPT. Director fees were not disclosed.
  • AustralianSuper’s deputy CEO and Chief Investments Officer, Mark Delaney, was also director of ISPT and director of IGIPT. Director fees not disclosed.
  • AustralianSuper director Brian Daley was also director of Utilities of Australia Pty Ltd, the trustee for UTA, which provides investment management services to AustralianSuper. Director fees and investment management fees were not disclosed.
  • Director of AustralianSuper, Alison Terry, is also a director of The Free News Pty Ltd, the owner of online news publication, The New Daily, of which AustralianSuper owns a third-share investment.

CareSuper remuneration: 2012/2013 annual report

CareSuper looks after $7 billion of retirement savings for 270,000 Australians. Set out below is remuneration data and related party transactions extracted from the 2012/2013 CareSuper annual report.

CareSuper has not disclosed related party transactions in the annual report, but made this information available on the fund’s website, via the fund’s audited financial statements.

Table 9: CareSuper trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
Sandy Grant (Chair) Undisclosed (employer director) Director $68,057
Cate Wood (Deputy Chair) ASU (member director) Director $66,651
Julie Bignell ASU (member director) ASU $6,020
Garry Brack Australian Federation of Employers & Industries (employer director) AFEI $38,547
John Burge NIBA (employer director) Director $49,520
Sue-Anne Burnley SDA SDA $38,356
Chris Christodoulou Unions NSW (member director) Unions NSW $39,383
Monica Clavijo Unions NSW (member director) USU $15,808
Angela Emslie VECCI (employer director) Director $22,616
Keith Harvey ASU (member director) Director $13,238
David Michaelis NSW Business Chamber (employer director) Director $36,349
Michael O’Sullivan ASU (member director) Director $21,674
Mark Sibree VECCI (employer director) Director $22,844
Gabriel Szondy Independent Director $50,900
Michael Want ASU (member director) Director $47,022
Barry Watchorn Ai Group Director $54,848
Alisha Wilde Unions NSW Unions NSW $66,651

Related parties: At 30 June 2013, CareSuper has relationships with the following service providers:

  • The trustee of CareSuper invoiced CareSuper $1.2 million in service fees.
  • CareSuper is a shareholder of ME Bank. CareSuper holds investments with ME Bank. Not specified in the annual report or financial statements, but through deduction SuperGuide presumes CareSuper holds $359 million in term deposits with ME bank, and $18 million in other invesyments
  • CareSuper is a shareholder of Industry Super Holdings (ISH), and Industry Funds Management (IFM) and Industry Fund Services are subsidiaries of ISH. The percentage share of ownership is not disclosed, and the super fund’s assets managed by IFM are not collated in a single figure.
  • CareSuper is a shareholder of Industry Super Property Trust Pty Ltd (ISPT), and a shareholder of ISPT Grosvenor International Property Truste (IGIPT) and CareSuper invests in ISPT products, and in IGIPT products. The amount of total investments has not been disclosed by the super fund.
  • CareSuper holds investment in Hastings Funds Management. Director and Deputy Chair, Cate Wood is the partner of a director, Steve Gibbs, of Hastings Funds Management.

At 30 June 2013, CareSuper directors have relationships with the following service providers:

  • Director and Deputy Chair CareSuper, Cate Wood, is also director of ISPT and IGIPT.
  • CareSuper Director, John Burge was also director of certain ISPT and IGIPT investment products until 23 April 2013
  • CareSuper trustee chairman, Sandy Grant, was also director of ME Bank, and is also a director of ISH and IFS (and subsidiary companies).
  • Garry Weaven, the partner of CareSuper director, Angela Emslie (resigned during the 2012/2013 year), is chair of IFM, and also a director of ME Bank.

FIRST Super remuneration: 2012/2013 annual report

FIRST Super looks after around $2 billion of retirement savings for about 72,000 Australians. Set out below is remuneration data and related party transactions extracted from the 2012/2013 FIRST Super annual report. The CEO of FIRST Super received total remuneration of $270,000 for the 2012/2-13 year.

FIRST Super has not disclosed related party transactions in the annual report, but made this information available on the fund’s website, via the fund’s  financial statements.

Table 10: FIRST Super trustee board and board committee fees
Trustee Director Sponsoring organisation Fees* paid to Total fees paid
Michael O’Connor (Co-Chair) CFMEU-FFPD (memberdirector) CFMEU-FFPD $88,495
Allan Stewart(Co-Chair) TTIA (employer director) Allan Stewart & Associates Pty Ltd $141,955
David Kirner CFMEU-FFPD (member director) CFMEU-FFPD $56,430
Alex Millar CFMEU-FFPD (member director) CFMEU-FFPD $29,040
Kevin Millie CFMEU-FFPD (member director) CFMEU-FFPD $48,950
Frank Vari CFMEU-FFPD (member director) CFMEU-FFP $29,590
Martin Lewis FIAA (employer director) Director $51,920
Lisa Marty VAFI (employer director) Director $23,900
Lindsay Morling FIAT (employer director) Director $47,900
Mike Radda FIAA(employer director) Director $22,660
Bob Smith Independent Director $78,980
Total Director Fees $619,820

Related party transactions: At 30 June 2013, FIRST Super has relationships with the following service providers:

  • FIRST Super owns 100% of Super Benefits Administration, which supplies administration services to FIRST super. SBA received $4.215 million in fees from FIRST Super.
  • FIRST Super paid $1.7 million to 8 CFMEU co-ordinators.
  • FIRST Super and Frontier Investment COnsulting share a director (Michael O’Connor), and Frontier provides advice to the super fund. The fees paid are not disclosed.

Related parties: At 30 June 2013, FIRST Super directors have relationships with the following service providers:

  • FIRST Super directors and co-chairs, Michael O’Connor and Allan Stewart, are also directors and non-beneficial shareholders of Super Benefits Administration (SBA).
  • Director, M Radda, and executive William Watson are also directors of SBA.
  • FIRST Super director and co-chair, Michael O’Connor, is also a director of Frontier Investment Consulting, an asset consulting company that provides advice to the super fund.
© Copyright Trish Power 2009-2014

Copyright for this article belongs to Trish Power, and cannot be reproduced without express and specific consent.


IMPORTANT: SuperGuide does not provide financial advice. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Readers need to seek independent advice about their personal circumstances.

Comments

  1. i have only one question what do the high paid lofters do for the money ?
    or is it job for the boys

  2. Well, HESTA is showing up in the top ten now – December 2012.

    One would hope that those who are making the selections of the ‘Top Ten’ are without connection themselves?

  3. Good to see this financial information printed. I think what the general public needs to take into consideration that most of those directors paid less than $50k aren’t just necessarily earning only this money. These amounts would generally represent what is paid to them for what meetings they turn up to. They may earn other monies from other directorships or jobs.
    The overall objection I have to industry fund reporting is that these type of wages are paid out of profits made by the fund and then they allocate the net amount as the investment return to the members. In other words they aren’t really being told what is being earned by their fund on their own investment. And don’t get me started on the amount of advertising these funds indulge in.
    It just means members don’t get told what their total costs are that are being wiped off the top. You can’t expect the members to read the annual accounts to understand this. And I didn’t think they paid financial advisors? They pay for financial managers and so this is just marketing spin again, trying to tug on the heart strings of their members

    • Fantastic blog Michelle G (Posted 28/10/12) – You took the words right out of my mouth!!!!!!!!

    • Well said MichelleG,
      I have a friend who is a ‘change management consultant’ and always have a giggle to my self when I am told about companies that employ ‘consultants’ to fix things up – isn’t that why companies employ their managers in the first place – ‘to manage’?
      Maybe I am a little naive about business practices but I find it hilarous that these managers cannot really manage yet are quite happy to take home the dollars.
      Of course the rationalising part is that ‘these managers are to closely involved in the business and cannot step out of it’… well they are managers and directors and ‘hired’ for their skills are they not?

      The thing I like to do is to calculate what their ‘hourly’ rate is.
      An example might be if someone earns $611,339 and is on a contract for 38 hours per week. This equates to 1976 hours per year and thus $611,339 divided by 1976 = $309.38 per hour [overall for what could be reported].
      How does this compare to the person doing the calculation?
      How does this compare to the lowest paid person in the company [in house or outsourced]?
      If the lowest pay was $25 per hour then the higher earning person earns 12.38 times more than the lowest. The argument could be that they ‘have more responsibiltiy’. Really ? Do they? Afterall they have their staff below them doing everything for them and also a lot of these companies are running ‘systems’ so it is all in place for years now just rolling along.

      very interesting is all I can say… oh…as a person running a SMSF I cannot take any payment for running my own fund!!!!! Not one cent. Today I spent 15 minutes updating some records, so at $309.38 per hour I should get paid $77.35…….

  4. wow so much money to union trustees i wonder how much financial experience they have

  5. Please send this info. to Four Corners.

  6. Industry funds have been the greatest success of the trade union movement in recent memory. It’s good to see C+Bus taking the lead, as they did when industry super was in its infancy.

    I wonder if the private sector funds will follow their lead. I won’t hold my breath.

    • Totally agree Trevor – It’s great to see Industry Funds step forward and show the members in plain context what us members are paying for. I’ve always found industry funds very good (except of course for the losses incurred during the GFC) however, Superannuation was only part of the iceburg.
      I must admit that I’m extremely keen to see (in clear dollars) what the “faces” on TV recieve to promote the Industry Superannuation funds!!! In saying this, I do understand that high profile individuals are required for marketing purposes, but at what expense to the member?
      One last comment is that as a Industry Fund member, it’s terrific that Funds are being more forthcoming and terefore sites such as “superguide” allow us individuals to access such information.
      “Those private funds ought to take a step forward and if there is nothing to hide, then why not disclose info openly”.

      • The disclosure of executive salaries by private funds is completely irrelevant and has nothing to do with the article above. Private funds are businesses offering a service to clients and the members of these funds have made a choice to join the fund. They offer financial advice to members on products both inside and outside of super. There is simply no comparison between the two.

        Industry funds are a nice default option for younger people who want to park their money for a while (a very short while) until they get serious about saving for retirement, that’s it. They are supposed to be run for the members and only the members which is a complete and total farce and industry funds should be ashamed of the way they take advantage of their members.

        In reality, Australians are under some sort of illusion that a company that charges them money to do nothing is a great deal. The best thing that could happen is that the entire population gets behind a movement to break the back of the industry fund system and move their funds into either Self Managed Super or a Quality retail fund.

        Ask a member of an Industry fund what assets their super is invested in and they will say “balanced” which is pretty pathetic really. If you were to invest thousands of dollars of your personal funds in a managed investment scheme you would make damn sure you knew everything about it. I challenge any member of an industry fund to find a fund breakdown that outlines which equities/shares they invested in and the dollar figure that is allocated toward them.

        Industry funds are an illusion to siphon money into the pockets of the unions and the projects they want completed which you can bet you ass they have some sort of arms length financial interest in. Australians need to wake up and stop supporting the Unions and their mates who do nothing but hold Australia back from becoming an even greater nation than it already is.

  7. Is there not some conflict of interest in the structure of HESTA and its relationships???

    Irrespective of performance these cosy partnerships where billions are involved must cease as there is an obvious perception of conflict of interest; nay nepotism.

  8. Hi Trish,
    Guess there is more to come. It’s time these superannuation fund officials were exposed giving members and the public an insight into who gets what and who’s with who. Hope it hits four corners.

  9. With HESTA, you can see there is nothing like keeping these things in the family…lol… wonder if they can spell “corporate governance”?
    I guess their members might be happy enough if their cosy relationship meant the performance was in the “top ten”, but I didn’t see it there.

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