Is an independent chair worth $100,000 a year?

compliance/conflicts-of-interest/superannuation/

22 October 2015
| By Mike |
image
image
expand image

Appointing an independent chairman to a superannuation fund will cost $100,000 a year and independent main board members will cost between $50,000 and $60,000, according to the Corporate Super Association (CSA).

The Melbourne-based association has used a submission to the Senate Economics Legislation Committee to argue that the Government's proposed compulsion for trustee boards to include a minimum one-third independent would create a high cost for corporate funds and their members but without equivalent benefits.

The claim stands in contrast to assertions from the retail superannuation sector that some industry funds are opposing the governance changes because they will, in part, reduce the influence of union-nominated trustee directors.

In its submission the CSA said that while an independent chairman might cost $100,000 and independent directors between $50,000 and $60,000, it was likely that committee members would cost between $35,000 and $40,000 a year.

Further, it said this was before travel and accommodation expenses for external directors were taken into account.

"The disparity may also result in a push for remuneration of all boards on the grounds of equity, resulting in significant further cost increases," it said.

"We stress that our funds are not opposed to expenditure where benefits accrue to members, but our funds are appalled at the prospect of spending members' money to reduce the efficiency of the current system."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND