POWERED BY MOMENTUM MEDIA
MySuper to address executive pay
Not-for-profit super funds will be required to better disclose the remuneration of their directors and trustees as part of the MySuper regulations registered in Parliament last week.
The Australian Institute of Superannuation Trustees (AIST) said it was pleased to see its recommendations regarding executive pay adopted in the MySuper regulations, which the industry body said would create a fairer disclosure regime.
The rules would require super funds to disclose the remuneration paid or provided to directors by a related entity. Where directors are not paid for their services by the fund directly, but by a related party such as a parent body, this reform would create an "equal playing field in relation to what the public can access about different funds' remuneration practices".
"Trustee directors generally receive payment either from the fund or by another party that employs them, where part of their role is accepted as being a trustee director on the related super fund," said Eva Scheerlinck, executive manager of governance at AIST.
"No matter where the remuneration is paid from, it should be disclosed and we are pleased to see that this forms part of the new regulatory framework.
"In many cases, the remuneration paid from the fund is only tiny compared to the remuneration some directors receive as an employee of the trust's parent company," she said.
If the directors are paid by the fund, they will need to disclose where the money is paid to (if it is not paid directly to the director, but rather to a sponsoring body or their employer).
"While some not-for-profit funds have lead the way and have adopted best practice by disclosing remuneration and ensuring transparency around the operations of their boards and executive, there has been room for improvement elsewhere," Scheerlinck said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
