What Drives Trustee-Director Compensation in Australian Superannuation Funds?
46 Pages Posted: 22 Aug 2016 Last revised: 13 Feb 2017
Date Written: December 1, 2016
Australian superannuation funds hold over AUD$2 trillion in assets yet little is known about trustee-director’s compensation. This paper examines the determinants of trustee-director compensation using a unique dataset of 137 superannuation funds. Funds with better reputations, for-profit funds, larger funds, larger boards, unitary boards and professional trustee companies, meeting attendance and higher duties are associated with higher compensation. Female, older and longer serving trustee-directors do not receive higher compensation. Trustee-director expertise is conditionally associated with compensation. Overall, our results highlight key differences in the determinants of trustee-director compensation in superannuation funds compared to that of listed company directors.
Keywords: Superannuation, trustee-director, compensation
JEL Classification: G23, G34
Suggested Citation: Suggested Citation