Once again we’re getting bombarded with advertising from industry super funds. How do they pay for advertising if all profits go to members? Of course, we’re told that this advertising serves ‘to benefit members’.
But what about CEO & Executive pay packets – do they benefit members too?
AustralianSuper chief executive Ian Silk received $564,456 base pay in fiscal 2013. His total pay was $611,339 after including $25,000 in super payments and benefits including a car and parking space. Chief investment officer Mark Delaney was the $65-billion fund’s highest paid executive after receiving performance payments that brought his total remuneration to $776,765.
In other annual reports released in October, $22.8-billion Cbus disclosed that chief executive David Atkin received an 8.3 per cent rise in base pay to $514,572 in 2012-13 and $25,000 in super contributions.
Former Sunsuper chief executive Tony Lally was paid more than $811,000 in remuneration in his final year at the fund. The $24-billion fund’s 2013 financial statements show him to be one of the industry’s highest paid executives*.
Confused about what ‘not for profit’ really means? Not surprising!
Let’s turn this question around:
– What if your super could be invested according to your own ethical and sustainable criteria, with similar low fees to industry funds?
– What if your fund manager donated a portion of their profit to worthwhile charities, whilst getting the same returns as other funds?
– What if your fund manager told you exactly what there were investing in, and according to what ethical criteria?
All of this can be done (it’s not hard!)…and you can have peace of mind about what your super is really up to. Contact us today to learn more about our ethical investment process.
In the meantime, if you really want to compare super funds, you should consider the following checklist:
– Administration Fees
– Insurance options and costs
– Investment options and costs
– Additional Features & Benefits
– Performance figures (see www.morningstar.com.au or other reputable websites. Be aware that past performance doesn’t guarantee future returns).
*Source: Brendan Swift, Investment Magazine Oct 2013
