The best-paid superannuation fund chief investment officer is now very close to breaking the $2 million total remuneration mark. A mere 6 per cent pay bump will see that barrier shattered.
The title of the top-paid CIO in 2023-24 went to UniSuper’s John Pearce, whose total remuneration of $1.88 million placed him ahead of Aware Super CIO Damian Graham at $1.76 million and Commonwealth Superannuation Corporation’s Alison Tarditi who, at $1.63 million, is the highest-paid female CIO.
Figures published by super funds in annual reports and remuneration reports show that 10 CIOs earned total remuneration of $1 million or more for the year.
Pearce and Graham are not far short of matching the highest-paid executive in the superannuation industry: Aware Super’s chief executive Deanne Stewart (Graham’s boss) was paid $1.9 million in the 2023-34 year.
Rounding out the almost exclusively male million-dollar CIO club were Hostplus’ Sam Sicilia, AustralianSuper’s Mark Delaney, Hesta’s Sonya Sawtell-Rickson – the only other female in this club – Future Fund’s Ben Samild, Cbus’ Brett Chatfield, Rest’s Andrew Lill, and Australian Retirement Trust’s Ian Patrick. Patrick’s $1.03 million total remuneration for overseeing the investments of the country’s second-largest fund suggests CIO pay is ultimately driven by more than just the quantum of funds they manage. Total CIO remuneration is a complex combination of base salary, short- and long-term incentives, “other” short-term benefits and superannuation contributions.
CIO remuneration - Table 1
Notes:
Total rem includes cash salary and may also include elements of short-term incentives including cash; other short-term bonuses; deferred incentives; shares, options and rights; one-off payments (including termination); non-monetary benefits; super; and other benefits including long-service leave. Some remuneration components may be accrued but not paid.
Damian Graham (Aware) includes annual leave adjustment
Anna Shelley (AMP) on extended leave from 21 September 2023 to 18 December 2023
Corrin Caldicott (Mercer) ceased 31 January 2024
Kylie Willment (Mercer) became a KMP at Mercer Super following Corrin Collocott departure
Paul Murray (legalsuper) appointed 12 March 2024
Dan Farmer (MLC) remuneration for MLC Super only (part of Insignia Financial)
Sources: APRA data, published annual reports and remunerations reports
While it may be one of the most demanding roles in the industry, it’s clearly also a rewarding one. During the year in review, funds generated solid returns and CIOs’ short-term, performance-linked incentive payments remained healthy. Anticipated 2023-24 returns suggest there won’t be any CIOs at risk of going backwards.
Different CIOs achieved their total remuneration figures in different ways. For example, UniSuper’s Pearce ranked top for total remuneration, but he came in only eighth among his peers for base salary. Pearce’s base salary of $765,766 was a long way behind the $1.04 million paid to AustralianSuper’s Delaney – the highest base salary in the tables. But while Delaney’s peers trailed him on base pay, they more than made up the gap through other remuneration components. In fact, Delaney, as the CIO of the number one fund measured by assets under management, ranked only fourth by total remuneration.
The healthy pay packets of the super industry’s investment chiefs reflect the fact that the job is significantly more complex today than it was 30 years ago, or even 15 years ago. Superannuation funds have grown in scale and complexity to become critical actors in the financial system. The job of the chief investment officer has also evolved.CIOs have historically had more in common with traders: glued to screens, making calls in close to real time, and in many cases operating with modest internal teams and support staff. Today they are required to manage issues well outside a straight and traditional investment remit.
The job now is less about time in markets and more about time with people, designing and overseeing institutional investment architecture that includes setting long-term strategic direction, ensuring robust processes are in place, building and maintaining high-functioning teams and balancing investment decision-making across internal and external managers.
CIOs also need to be able to weather intense scrutiny of their teams’ investment decisions and performance and, of course, how much they’re paid by the members whose assets they are employed to manage.
But scale is a double-edged sword. It creates opportunities to access top-tier global managers, and to negotiate on fees and bespoke mandates. But it also limits agility and denies funds access to some high-alpha opportunities – think small-cap equities, or subsectors of private credit markets, where big funds can’t play without adverse market impact.
When many of today’s CIOs began their careers, private markets were a minor consideration, if they were a consideration at all; portfolios were typically dominated by listed equities, bonds and perhaps some direct property.
Now, private equity, private credit, infrastructure and uncorrelated alternatives such as insurance-linked securities are integral parts of the asset allocation mix, demanding new skills and insights of investment teams.
CIO remuneration - Table 2
Notes:
Total rem includes cash salary and may also include elements of short-term incentives including cash; other short-term bonuses; deferred incentives; shares, options and rights; one-off payments (including termination); non-monetary benefits; super; and other benefits including long-service leave. Some remuneration components may be accrued but not paid.
Damian Graham (Aware) includes annual leave adjustment
Anna Shelley (AMP) on extended leave from 21 September 2023 to 18 December 2023
Corrin Caldicott (Mercer) ceased 31 January 2024
Kylie Willment (Mercer) became a KMP at Mercer Super following Corrin Collocott departure
Paul Murray (legalsuper) appointed 12 March 2024
Dan Farmer (MLC) remuneration for MLC Super only (part of Insignia Financial)
Sources: APRA data, published annual reports and remunerations reports
As teams have grown, so has the importance of leadership. The CIO plays a central role in attracting, motivating and retaining investment professionals. Keeping talented teams engaged and aligned with a fund’s investment philosophy is now as critical as generating excess returns.
Empowerment and trust have become key levers. Delegation is no longer optional, it’s essential. But effective delegation relies on trust, and that must be earned and cultivated. CIOs are now as likely to spend their time checking in with direct reports on their development and wellbeing as they are running risk scenarios.
The CIO’s job is also increasingly shaped by regulation. Today’s superannuation environment is defined by increased scrutiny, not just from APRA and ASIC, but from boards, media, and the broader public. The CIO now operates under a far brighter spotlight.
Whereas investment decisions could be implemented with minimal oversight, today they are subjected to rigorous governance, documentation, and stakeholder engagement. What was once a relatively nimble function is now constrained by internal controls and fiduciary duties.
In this more complex and regulated environment, the CIO has become less of a command-and-control decision-maker and more of a manager of a multidisciplinary team. The best CIOs today set a clear strategic path but allow their teams the flexibility to choose the precise route. It’s about guiding the decision-making process, not micromanaging it.
CIOs must ensure their operating models and the teams the lead are fit for purpose and able to access the investment opportunities that will best serve members over the long term. Of course, the better they serve members with strong investment returns and growth in AUM, the better they also serve themselves.
