Super salary games
AUSTRALIANS are paying more in superannuation fees every year than we are collectively spending on skyrocketing power bills, in a gouge that is lining the coffers of bosses.
A News Corp investigation into the multibillion-dollar industry has found that while savings have more than doubled in a decade, the profits being creamed off hardworking mum-and-dad members’ investments are eye-watering.
It can also be revealed some board members have been in their positions for almost three decades — far longer than the 12-year tenures corporate Australia typically mandates.
New regulator data shows the amount of money sitting in super climbed from $1.23 trillion in mid-2010 to $2.86 trillion today, swelling retirement fund fees.
Not-for-profit industry superannuation funds dominate the top of the super tree, and several of their CEOs and chief investment officers are pocketing $1m-plus salaries, while the funds donate millions of dollars to unions.
The funds’ latest annual reports show the highest-earning super CEO for 2018-19 was HostPlus’s David Elia, who was paid $1.19m, while AustralianSuper boss Ian Silk earned $1.06m and QSuper CEO Michael Pennisi was paid $1.02m.
Chief investment officers got even more, with UniSuper CIO John Pearce’s salary at $1.73m and AustralianSuper’s Mark Delaney’s at $1.63m.
Liberal senator Andrew Bragg, the author of Bad Egg: How to Fix Super, said there were too many highly paid super fund bosses and the super system was failing to keep Aussies off the pension.
Senator Bragg said only 30 per cent of Australians at retirement age were completely self-funded despite the super system being in place for nearly three decades.
“There’s been mergers that have fallen over because they can’t work out who is going to go on the boards, which means there’s double the directors fees, union conferences and sponsorships,” he said.
Senator Bragg said that some of those on the super fund boards had been on there far too long.
“I don’t think people should be on boards for 28 years — that’s ridiculous,” he said. APRA said there would be “limited circumstances where someone can be on a board for a period extending more than 12 years would be appropriate”.
Australians pay $32bn in fees every year, which Senator Bragg said was “more than we spend on power bills”.
Association Superannuation Funds of Australia chief executive officer Dr Martin Fahy defended the system, saying its “intended purpose is to provide adequate income for Australians in retirement and deliver a dignified standard of living”.