by Rob Hosking
As Supertalk revealed in July, the Guardians had asked for ane extra $1 million in this year's Budget to research alternative asset classes, but Treasury advice – which Finance minister Michael Cullen heeded – was to hold off any increase until after the Eriksen review.
Cullen says he is considering the recommendation for extra resources.
However Eriksen’s comments on staffing issues suggest the subject is of reasonable urgency. Despite being able to lure such highly regarded talents as chief executive Paul Costello and former AMP chief strategist Paul Dyer, the Guardians need more money to retain the necessary skills.
“I am…concerned at the potential risk of a particular staff member being poached …it is particularly important to the Guardians because of the relatively short time it has been in operation and the pace at which policy is being developed and implemented.”
Eriksen suggests setting up a “bonus pool” of between 20% and 50% of the investment professionals’ salaries, to fund performance related pay.
That would require extra funding on top of the additional $1.7 million he is already recommending.
“While the Guardians cannot hope to compete on the basis of international salaries, it would be short-sighted in my view to rely on lifestyle and the job satisfaction inherent in this exciting new venture to retain people for the medium term.”
The Guardians' annual report shows that one staff member - presumably Costello - is paid between $340,000 and $350,000 a year, another staff, presumably Dyer, is paid between $250,000 and $260,000. There is another person on between $220,000 and $230,000 and two people paid in the range of $110,000 and $120,000 a year.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
| « NZ Super Fund gets tick | ASFONZ opposes generic savings scheme » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved