Super fund head’s pay down $135K at $928,533
AUCKLAND: The chief executive of the New Zealand Superannuation Fund took a $135,000 hit to his pay packet this year after taking a voluntary pay cut and receiving a lower bonus because of the fund’s performance.
The annual report for the $44.8 billion fund shows Matt Whineray received total remuneration of $928,533 in the year to June 30, down from $1,063,910 in the previous financial year.
He would have received remuneration of $953,994 if he had not taken a voluntary 20% reduction in his base salary.
Mr Whineray’s actual base remuneration payment, including holiday pay, was $638,481, up from $623,525 in the 2019 financial year.
His individual atrisk pay fell from $124,705 to $119,170. But it was the pay linked to the fund’s returns that took the biggest hit.
A bonus based on the fund’s excess return on a fouryear moving average was just $57,209 compared with the previous year’s $78,917, while a ‘‘value add’’ bonus also based on a fouryear moving average was $39,993, down from $153,220.
Mr Whineray also received $68,087 in contributions towards his KiwiSaver scheme and $5593 in benefits from having life, income protection, trauma and health insurance paid for.
The super fund had a return of just 1.73% during the year to June 30 after it was hit by the market downturn caused by Covid19.
Over the past 10 years it has averaged 12.6% per annum in returns.
Chairwoman Catherine Savage said in her annual report statement that between January and midMarch the fund’s value dropped significantly in line with global equity markets but it had since recovered, rising $1.7 billion in the financial year.
But despite the volatility in markets the crisis did not present a major risk to the fund, she said.
‘‘As investors, we are advantaged by our endowments; we have a longterm investment horizon with no substantial withdrawals until well into the 2050s.
‘‘Our investment strategy and portfolio choices are designed with this in mind and the fund is well placed to weather and even benefit from the volatility we are experiencing now.’’
While markets had recovered quickly in recent months, both the local and global economy might continue to be ‘‘severely challenged by the current crisis and will take many years to recover to precrisis levels’’, she said.
‘‘Companies’ business model will need to change and many will not survive in their current form.’’
This would be her last annual report as she would be stepping down from the board in March after more than 10 years on it, she said.
It had been ‘‘pleasing’’ to see the fund’s investment frameworks, governance and internal capability ‘‘developed to bestpractice standard and to be recognised as such’’. — The New Zealand Herald