The CEO of state superannuation fund GESB, Michele Dolin, is to step down next month after eight years at the helm, a period which included an aborted plan to privatise the $13 billion group.
The CEO of state superannuation fund GESB, Michele Dolin, is to step down next month after eight years at the helm, a period which 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 due to 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.
This pay level, granted in January 2008, and later rises for other executives had reportedly been awarded because of GESB's proposed status as a private sector player.
There is some concern within political circles that those pay rises cannot be reversed even though GESB remains a state agency.
Greens MLC Giz Watson recently asked questions in parliament to current Treasurer Christian Porter about the scale of pay rises. Those questions are expected to be asked next week.
According to GESB, Ms Dolin will receive a payment of equivalent to 12 months salary, comprising payment in lieu of notice and an ex gratia payment set by the board, along with statutory entitlements such as unpaid annual and long service leave.
Below is GESB’s announcement:
The Board of GESB has today announced that Ms Michele Dolin will step down as Chief Executive Officer of GESB, effective 10 June 2011.
Ms Dolin has held the position of CEO of GESB since July 2003 and has overseen growth in funds under management from $3.2 billion to $12 billion. GESB is Western Australia's largest locally based superannuation fund, looking after the retirement savings of more than 320,000 West Australians.
The Board of GESB is currently working with the State Government to implement the Government‟s new blueprint for the future management of superannuation for West Australian public servants.
Chairman John Langoulant thanked Ms Dolin for her contribution to the organisation and for her role in positioning GESB for the impending reforms.
GESB and the State Government are currently finalising implementation pathways for the reform of public sector superannuation in Western Australia, including the introduction of choice of funds for public sector workers and the outsourcing of administrative services.
“Ms Dolin has been instrumental in ensuring high quality services and consistent strong returns for members over the past eight years,” said Mr Langoulant.
“In addition, she has been a strong advocate for members‟ interests and has represented them and the organisation robustly through the review process.
“Much of the reform planning is now well underway and, on behalf of the Board and GESB members, I thank Michele for her contribution.”
The State Government is expected to introduce legislation to Parliament shortly, which will facilitate the reforms.
Mr Langoulant said GESB remained committed to implementing the reform arrangements with the State Government with the objective of advancing members’ interests.
He said Ms Dolin would receive a payment of equivalent to 12 months salary, comprising payment in lieu of notice and an ex gratia payment set by the Board, along with statutory entitlements such as unpaid annual and long service leave.
Ms Dolin said she wished GESB well in the transition period as the organisation moved to implement the Government’s policy on superannuation reform.
“GESB is an organisation that has a strong focus on the best interests of its members and I wish the Government and GESB well as they shape the organisation to meet the challenges ahead,” said Ms Dolin.
“I leave with GESB in great shape, with committed staff and a strong Board with the capability and leadership needed to steer the organisation through future changes.
“I’m now looking forward to the next phase of my career which will see me return to the private sector.”
Fabian Ross, GESB’s current General Manager of Wealth Management, has been appointed Acting CEO.
Mr Langoulant said a formal recruitment process would be launched to find a replacement for Ms Dolin.
