The chief executive officer of state superannuation fund GESB, Michele Dolin, is to step down next month after eight years at the helm, a period that included an aborted plan to privatise the $13 billion group.
The move follows that of her chairman Phil Harvey earlier this year and marks a change of guard from the key leadership behind GESB’s ill-fated privatisation plan.
GESB was nearly handed over to its members on July 1, 2008, a decision that was stalled by then-Labor treasurer Eric Ripper after he became concerned about the cost to the state because of the tax implications and the level of proposed reserve funds.
A report by Rod Whithear, commissioned by Mr Ripper’s Liberal Party successor, Troy Buswell, found the privatisation could have cost as much as $467 million. Last year Mr Buswell accepted the report’s recommendation to kill off the idea.
However, some observers believe it was the appointment earlier this year of former under-treasurer John Langoulant and key government actuary Cathy Nance to the GESB board which really signalled the government’s intentions.
Ms Nance had warned Treasury about the potential cost of the privatisation to the state.
Aside from the privatisation, Ms Dolin’s tenure attracted some controversy over the size of her remuneration, which became public after Mr Ripper stopped the GESB mutualisation.
According to the 2010 annual report, Ms Dolin’s remuneration was between $510,000 and $520,000, an amount unchanged since 2008, which has made her one of the state’s highest-paid public servants.
