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rise of 5.4 per cent in the previous year. In their last
pre-GFC annual rise, CIOs received an 11.2 per cent
increase in pay on average.
CIOs with base remuneration in the top quartile
were paid at least $435,086 while those in the 10th
percentile were paid upwards of $598,701.
McGuirk says CIOs receive higher annual rises
than other fund executives, mainly because their
remuneration is influenced by the overall investment
industry, inside and outside super. Another factor is
the trend for large funds to develop their in-house
investment teams (see section on other investment
While CIOs received a bigger rise in their basic
remuneration in 2013/14 than CEOs, CIOs of
bonus-paying funds also have the potential to earn
much higher bonuses than almost all executives –
including bonus-receiving CEOs.
McGuirk says half a dozen CIOs of surveyed
funds have the potential to double their base pay
“Their potential bonuses are not the 200-300
per cent [of base pay] that may be found elsewhere
in the investment industry,” McGuirk comments.
“Their bonuses are conservative but are increasing.”
It should be emphasised that most of the
respondents to the survey are not-for-profit funds
(see section on performance rewards).
OTHER INVESTMENT SPECIALISTS
McGuirk says the biggest growth in employee
numbers over recent years is among investment
specialists as more funds set up and expand their in-
house investment teams. “We are going down the
path of funds being large enough to manage their
Funds employing more in-house investment
specialists have to pay them higher base pay
and bonuses than other employees. This applies
throughout investment teams; not solely senior
management. McGuirk says investment specialists
have a different “nexus” for their remuneration,
namely the overall investment industry.
“Investment specialists want both comparable
salaries and performance rewards,” emphasises
McGuirk. However, he says that “youngish”
investment specialists are often drawn to industry
super funds because they are viewed as “family
friendly”. This may involve some cultural trade-off
with remuneration yet “reasonable” pay was still
Investment managers received a 4.7 per cent
average rise in 2014/15, taking their average base
pay to $191,632.
Investment managers in the top quartile were
paid base remuneration of at least $209,369 for
2014/15 while those in the top 10th percentile
received at least $240,300.
In turn, the employment of in-house investment
teams is leading to the creation of specialised
investment roles within super funds.
These specialised positions include investment
portfolio manager – property (7 positions among
80 funds surveyed, average base pay: $230,026);
investment portfolio manager – private equity (3
positions with surveyed funds, average base pay:
$273,843); manager investment implementation
(5 positions with surveyed funds, average base
pay: $220,152); investment/portfolio manager –
domestic and internal equities (5 positions with
surveyed funds, average base pay: $223,043).
Environmental, social and governance (ESG)
investment managers were paid an average base
of $185,961 in 2014/15. Nine surveyed funds
employed ESG investment managers.
CHIEF FINANCIAL OFFICERS/GENERAL
MANAGERS OF FINANCE
Chief financial officers and general managers of
finance received an average rise of 7.3 per cent
in 2014/15, increasing their base remuneration to
an average of $248,300. This is the same as the
percentage rise for the previous financial year.
These executives with base remuneration in
the top quartile were paid at least $295,130 for
2014/15. This compares to executives in the top
10th percentile receiving at least $321,571.
GENERAL MANAGERS OF RISK/GENERAL
MANAGERS OF GOVERNANCE
General managers of risk and general managers of
governance had an average base remuneration of
$217,688 in 2014/15 – up by 11.3 per cent on the
previous financial year. Executives in the top quartile
were paid a base of at least $248,419 while those
in the top 10th percentile received above $287,050.
Although funds are paying increasing attention
to their governance, compliance and risk control,
McGuirk says these executives receive the lower
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