About 40 chairmen of Australia’s biggest industry super funds will need to be replaced under the federal government’s proposed new corporate governance rules.
The regulations, requiring one-third of directors and the chairman to be independent from July next year, would cut through about two-thirds of the current heads of the funds.
“I think there will be a significant number of chairs that will have to be found,” Australian Institute of Superannuation Trustees chief executive Tom Garcia told Fairfax Media.
“We’ve got 60 funds and I would estimate two-thirds of the chairs will change.”
Many of the heads of industry funds, which are not for profit, have a union background and their board positions are mainly filled by union representatives.
The boards of directors of corporate funds are usually a mix of union and the company management.
A retail fund needs one-third of directors to be independent to gain membership of the Financial Services Council.
Super funds will have three years to rejig their boards to meet the new requirements.