Troubled super fund head retires

MTAA Super has looked within its own ranks to replace long-serving chief executive Michael Delaney, following his retirement from the controversial fund this month.

By InvestSMART · 24 Nov 2011

By InvestSMART ·
24 Nov 2011

Comments

MTAA Super has looked within its own ranks to replace long-serving chief executive Michael Delaney, following his retirement from the controversial fund this month.

The $6 billion fund has named deputy chief executive officer Leeanne Turner to take charge as chief executive. Ms Turner, a former boss of AvSuper, has held the deputy chief executive role at MTAA Super for the past four years.

"Leeanne's appointment reflects her skills and track record within the superannuation industry. This includes sound business and administrative acumen, expertise in managing compliance issues and strong communication skills," said MTAA Super chairman John Brumby.

The appointment follows a period of upheaval at MTAA Super. Mr Delaney's exit came after board members of MTAA Ltd, the employer sponsor of the fund, passed a "no confidence" vote in former chief executive. The fund has also faced questioning by the regulator, the Australian Prudential Regulation Authority, over governance issues.

Meanwhile, Mr Brumby announced the appointment of two superannuation executives to the board of MTAA. These are Vicki Allen, the former chief operating officer of The Trust Company, and one-time Victorian-based State Super Fund director Susanne Dahn.

Before the GFC, investing heavily in infrastructure and commercial property paid off for the fund's 280,000-plus members, most of whom work in the motor trades industry. For years, MTAA Super was the best-performing fund in the market. But then came the financial crisis, which exposed weaknesses in the fund's strategy, resulting in a string of poor returns.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

Who is the new MTAA Super CEO and what is her background?

MTAA Super has appointed Leeanne Turner as chief executive. She was the fund’s deputy CEO for four years and is a former boss of AvSuper. MTAA Super chair John Brumby highlighted her experience in business and administrative acumen, compliance management and strong communication skills.

Why did long-serving MTAA Super chief executive Michael Delaney retire?

Michael Delaney retired this month after a period of upheaval at MTAA Super. His exit followed a ‘no confidence’ vote in him by board members of MTAA Ltd, the employer sponsor of the fund.

How large is MTAA Super and who are its members?

MTAA Super is a roughly $6 billion fund with more than 280,000 members, most of whom work in the motor trades industry.

Has MTAA Super faced any regulatory scrutiny?

Yes. The fund has faced questioning by the Australian Prudential Regulation Authority (APRA) over governance issues, according to the article.

Who else was appointed to the MTAA Super board?

MTAA Super appointed two superannuation executives to the board: Vicki Allen, formerly chief operating officer of The Trust Company, and Susanne Dahn, a one-time director at a Victorian-based State Super Fund.

How did MTAA Super’s past investment strategy perform before and after the global financial crisis?

Before the global financial crisis, MTAA Super’s heavy investing in infrastructure and commercial property paid off and helped the fund be one of the market’s best performers. The financial crisis later exposed weaknesses in that strategy and resulted in a string of poor returns.

What does the article say about MTAA Ltd’s role in the leadership change?

The article states that board members of MTAA Ltd, the employer sponsor of the fund, passed a ‘no confidence’ vote in the former chief executive, which preceded Michael Delaney’s retirement.

What should MTAA Super members know about recent changes in leadership and governance?

Members should know MTAA Super has replaced its long-serving CEO with internal candidate Leeanne Turner, added two experienced superannuation executives (Vicki Allen and Susanne Dahn) to the board, and that the fund has been questioned by APRA about governance — all developments reported as part of a period of upheaval at the fund.