POWERED BY MOMENTUM MEDIA
AustralianSuper exec revealed as highest-paid in industry
AustralianSuper’s chief investment officer (CIO) and deputy chief executive (CEO) Mark Delaney has topped the list of Australia’s highest-paid industry superannuation executives, according to Yellow Folder Research’s latest Executive Index.
Compiled using data from the latest round of financial reporting, with remuneration captured for the year to 30 June 2023, the index found Delaney received $2 million in compensation.
He was the only executive to cross the $2 million mark.
He was followed by UniSuper CIO John Pearce ($1.77 million) and Aware Super CIO Damian Graham ($1.59 million), with the top three remaining unchanged from the previous financial year.
Meanwhile, Hostplus CEO David Elia and AustralianSuper CEO Paul Schroder were the highest-paid chief executives, receiving $1.56 million and $1.50 million, respectively, in the fourth and fifth spots.
The rest of the top 10 highest-paid executives comprised of the following:
- Aware Super CEO Deanne Stewart ($1.47 million).
- Hostplus CIO Sam Sicilia ($1.29 million).
- UniSuper CEO Peter Chun ($1.26 million).
- Cbus CEO Kristian Fok ($1.21 million).
- HESTA CEO Debby Blakey ($1.20 million).
Stewart and Blakey were the only female executives to break the top 10.
The index also noted that fund size played a “significant role” in driving pay, but it was not one for one.
Ian Patrick, who is CIO of Australia’s second-largest fund Australian Retirement Trust received $1.2 million and appeared in the 11th position. However, Yellow Folder Research suggested, this could be contingent on the fact the fund was only formed in early 2022, following the merger of Sunsuper and QSuper.
The executives to appear among the top 25 who did not hold a CEO or CIO role were primarily from Australia’s largest super fund, $300 billion fund AustralianSuper. This included chief operating officer Peter Curtis ($1.04 million); chief member officer Rose Kerlin ($840,000); chief risk officer Andrew Mantello ($820,000); and chief retirement officer Shawn Blackmore ($780,000).
Looking at the 25 highest-paid super executives, they were paid $28.5 million in total for the 2023 financial year, coming to an average of some $1.1 million each.
Variable remuneration, or incentive-driven pay, accounted for just over 20 per cent ($6.4 million) of the total paid to the 25 individuals. Interestingly, the proportion earned by each person varied dramatically, ranging from 0 per cent to 53.7 per cent of total remuneration (as seen with UniSuper’s CIO John Pearce).
Variable remuneration was also weighted towards the short term. The index highlighted 19 of the 25 earned some sort of short-term incentive for the financial year and just five individuals – four of whom worked for Aware Super – were paid a long-term incentive.
Yellow Folder Research’s managing director Julian Doherty said the index showcased the remuneration of Australia’s key executives whose positions require them to make decisions that affect the retirement savings of all Australians.
“Our data adds to the debate around whether this level of remuneration is fair, whether the financial year 2023 increases are justified and whether total pay is appropriately balanced towards variable pay,” Doherty said.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
