This article originally appeared own the print rendition of Retirement Magazine Vol 2.

Before diving into the specific skills required to make a board as effective as it can possibly be, it’s crucial to understand a fundamental principle: single representation rarely works. Whether it’s diversity of gender, background or expertise, having just one person with a particular perspective limits their impact and influence. We’ve all experienced being a “lone voice”.

As former APRA deputy chair, insurance company chairman and actuary Ian Laughlin has noted:  “It is highly desirable that there are three or more directors who have deep operational experience in the particular financial services industry.”

Most of the science that I’ve seen on “critical mass” comes from studies of female representation on boards and management teams.

Today’s super fund contains four verticals

This principle becomes even more critical when considering that superannuation funds operate across four distinct industry verticals: investment management, superannuation and retirement services, insurance, and financial advice.

Obviously, you can’t have multiple people for each skill set, so you need to decide which ones are most important.

Seven essential elements for super board success

1. Member representation adds real value

Member representation – whether through union nominees or member-elected directors – brings invaluable diversity of thinking to boardroom discussions. The key isn’t whether to include member voices, but rather how many positions to allocate and how to select the right candidates. From practical experience, member representatives help boards avoid groupthink and ensure genuine member perspectives inform strategic decisions. I would suggest that two member representative positions would work well, providing sufficient voice without crowding out other needed skillsets.

2. Double down on investment expertise

While super funds have traditionally been strong at including investment capability on boards, many limit themselves to a single investment professional. Given that investment management sits at the core of superannuation, two investment experts provide better coverage and help diversify thinking around investment approaches.

The investment landscape offers numerous flavours of expertise – from fund managers and investment company CEOs to asset consultants and investment bankers. The ideal combination blends practical investing experience with robust investment theory.

3. Superannuation and retirement capability cannot be delegated

Unlike investment expertise, many funds have overlooked deep superannuation and retirement capability at board level, often assuming “that’s what management brings to the table.” This is a critical oversight. Superannuation product knowledge differs significantly from investment management capability. The complexity around retirement products, administration systems, and member experiences requires dedicated expertise – particularly in the era of the Retirement Income Covenant and its focus on longevity protection products. Boards also need directors who understand the retiree perspective, recognising that accumulation and retirement phases present vastly different challenges from customer experience, product design, and advice standpoints. This expertise can come from actual retirees, retirement sector professionals, or those with broader experience such as aged care.

4. Technology leadership (not IT management)

The question isn’t whether boards need technology expertise – it’s what type of technology professional adds most value. Useful technology capabilities include understanding IT strategic landscapes, overseeing large complex projects, grasping digital transformation opportunities, and anticipating AI’s future impact. However, boards don’t need infrastructure specialists or cyber security experts – these are management-level capabilities, not governance requirements.

5. Insurance and advice: the forgotten essentials

Insurance represents a significant component of superannuation operations, with premiums often exceeding the fees members pay. Premiums can be in the hundreds of millions, so it’s important to get it right. Despite this materiality, insurance expertise remains uncommon in super fund boardrooms.

Similarly, as funds invest heavily in financial advice capabilities – both face-to-face and digital – boards require appropriate oversight expertise in this area. These investments demand directors who understand advice business models, regulatory requirements, and member value propositions.

6. The supporting cast

Several additional capabilities strengthen superannuation boards:

Financial expertise: At least two directors with strong financial backgrounds, including one with accounting qualifications and experience, ensures robust financial oversight.

Operational understanding: Someone with administration and customer service experience brings a crucial operational perspective, helping boards understand member experience from a service delivery standpoint. This can be from other industries, particularly those who do customer experience well (for example, banking, hospitality or supermarkets).

People management: Whether through a chief people officer background, union leadership, or chief executive officer experience, human capital expertise becomes increasingly valuable as funds compete for talent.

Risk and compliance: Regulatory complexity demands directors who understand risk management, compliance frameworks, and legal requirements.

7. Style trumps everything

Perhaps most importantly, style trumps skills. An example of this comes from the benefits that former CEOs bring to the table. Only those who have held CEO positions truly understand and empathise with the unique pressures and challenges facing chief executives. Former CEOs often provide more supportive oversight, avoid creating adversarial dynamics, and bring distinctive leadership capability and business acumen to board discussions. Including at least two former CEOs creates a valuable leadership nucleus within the broader board composition.

A reality Check

The academic research on the link between board skills and organisation performance can best be described as “mildly positive”. There are many other factors at play. It’s important not to load up the board with the right skills at the cost of the style factor mentioned above and diversity of thought from people in different industries and with different backgrounds. Its also important to have a core group that has had board experience as this sets a solid modus operandi.

The above discussion on desirable skills may suggest a very large board is necessary. This is not the case. Firstly, many directors will tick multiple boxes (for example, a funds management CEO who has an accounting qualification). Secondly, this shouldn’t be used as a checklist – it’s more art than science, so some skills may not be present. Finally, my experience supports the academic research: large boards are sub-optimal. The ideal size is fewer than 10, and more like 6 to 8 people.

While ticking capability boxes remains important, boards must guard against losing the intangible “x factor” that comes from the right mix of personalities, leadership styles and collaborative approaches.

Effective superannuation fund governance requires more than a skills matrix – it demands thoughtful composition that balances technical expertise with leadership capability, member representation with commercial acumen, and sector knowledge with fresh external perspectives.

As the superannuation industry continues evolving, boards that master this balance will be best positioned to guide their funds through increasingly complex challenges while delivering superior member outcomes.

Nicolette Rubinsztein is a former director of UniSuper, Class and Super Ed. She is chair of CBHS Health Fund, a director of Zurich, and chair of Greenpeace Australia Pacific and Missionvale Australia. Nicolette was made a Member of the Order of Australia in 2024, and is a former president of both the Actuaries institute and ASFA.