Paid and pre­pared

Finweek English Edition - - Business Trends -

MORE THAN A QUAR­TER of re­tire­ment fund trustees in South Africa and Bri­tain go to their meet­ings ill-pre­pared. That’s one of the key find­ings by pro­fes­sional ser­vices com­pany Price­wa­ter­house­Coop­ers (PWC) in its 2010 Trustee Re­mu­ner­a­tion Sur­vey.

PWC sur­veyed the views of chair­men, trustee board mem­bers and prin­ci­pal of­fi­cers of 243 pri­vate and spe­cial­ist funds in SA about the work­ings of their boards – with a par­tic­u­lar fo­cus on re­mu­ner­a­tion – and com­pared those find­ings with those polled in Bri­tain. It found be­tween 20% and 30% of trustees in both SA and Bri­tain con­tin­ued to go to meet­ings un­pre­pared, as was the case in PWC’s 2007 sur­vey.

PWC says this be­hav­iour is di­rectly cor­re­lated with whether or not trustees are re­mu­ner­ated. For ex­am­ple, only 16% of funds that re­mu­ner­ate re­sponded that trustees aren’t fully pre­pared and don’t get in­volved be­tween meet­ings, while 36% of non-re­mu­ner­at­ing funds con­firmed this. Of those that re­mu­ner­ated, 65% of trustees ded­i­cate the nec­es­sary time ev­ery month and were ap­pro­pri­ately pre­pared for meet­ings while only 41% of non-re­mu­ner­at­ing funds were of that view.

The sur­vey found only 45% of SA funds re­mu­ner­ate their trustees com­pared with 93% in Bri­tain. The main rea­son for not re­mu­ner­at­ing is that trustee du­ties in SA are per­ceived to be part of the trustee’s em­ployee salary and trustee time is taken out of nor­mal work­ing hours.

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