The Australian Council of Trade Unions (ACTU) will look at the transparency behind industry superannuation fund executive pay as part of a broader review of executive remuneration.
Speaking at an industrial relations event in Victoria earlier this month, ACTU president Ged Kearney said the union body would examine executive remuneration, including the salaries of executives in companies and industry superannuation funds.
"We will be calling for transparency on executive remuneration across all industries, including industry superannuation funds," Kearney told Investor Weekly.
"Executive pay is self-perpetuating. This means when executives in one sector get paid more, it tends to flow into other sectors.
"It is important that we set up a benchmark for all industry sectors."
A recent ACTU report found the average chief executive in Australia's largest 50 companies would take home $6.4 million in total remuneration.
Unlike listed Australian companies, industry funds are currently not required to disclose the details of executive remuneration.
Research from McGuirk Management Consultants, however, found the average annual salary for an executive was $460,000. This salary only applied to executives in superannuation funds managing more than $12 billion.
In some cases, annual salaries averaged around $500,000, according to McGuirk Management Consultants.
"We will most likely see many superannuation funds moving down the path to full disclosure and this includes disclosing details on executive remuneration," McGuirk Management Consultants managing director Terry McGuirk said.
