Spotlight on Industry Funds - Independent Directors
With the current focus on the proposal to mandate one-third independent directors in 2016, Industry Moves takes a closer look at the board make-up of 30 of Australia's largest industry super funds and lists the number - and names - of the independent directors and chairs. We also share some quotes from industry leaders both for and against the proposed changes.
Snapshot
30...............Number of funds included
292............Total number of board directors
43%...........Percentage of funds with an independent chair
8%..............Percentage of directors that are independent
42%...........Percentage of independent directors that are female
What they said...
There has been a lot written about the proposed new governance rules earmarked for 2016 that require APRA regulated super funds to have a minimum of one-third independent directors. The following are notable quotes from industry leaders that highlight the diversity of opinions on the subject.
Chris Cuffe, chair, UniSuper - Media Release, September 29, 2015
"Since 2007, UniSuper has had three independent directors, including an independent Chair. The organisation has benefited from the particular expertise we have been able to bring on to our board that simply would not have been possible under a traditional representative model."
Robbie Campo, deputy CEO, Industry Super Australia - Financial Review, June 25, 2015
"We are frankly astounded anyone would be seeking to alter the all-profit-to-members governance model, which has delivered by far the best performing funds and avoided the advice scandals, which have beset the major banks over the last decade".
David Hartley, retired CIO, SunSuper - Sydney Morning Herald, September 21, 2015
"I do think mandating one-third independents and independent chairs will be good for the industry".
Chris Davies, CEO, Telstra Super - Financial Review, June 21, 2015
"It seems that the compromise of mandating one-third independent directors is probably where things are going, and in my personal view that is a good thing that will help bring new directors to our board with deep investment skills".
Brett Himbury, CEO, IFM - Sydney Morning Herald, September 22, 2015
"It is my hope that the government will not be ideologically driven and that with more discussion the legislation to outlaw the equal representation model of industry fund boards can be scrapped or amended".
Ian Silk, CEO, AustralianSuper - The Australian, December 29, 2014
"I think the real question is whether boards have the appropriate skills, wherever their directors are drawn from".
