Superannuation funds will need to add professionals to their boards as funds come under further pressure from the financial crisis, according to a global governance expert.
"The boards of Australian superannuation funds are effective, but there is always room for improvement. In addition to the lay trustees, superannuation funds should consider adding more professional directors with particular expertise," Hermes Equity Ownership Services chief executive Colin Melvin said.
In April 2007, Unisuper appointed former AMP chief investment officer Merv Peacock and former Colonial First State chief executive and Challenger chief executive Chris Cuffe to its board.
Appointments such as those would continue as funds struggled to deal with the financial crisis, Melvin said.
"Boards will need to have a level of expertise in order for them to cope with the ongoing credit crisis," he said.
Trustees should also undergo further education in order to make more informed decisions, he said.
He said Australia's compulsory superannuation system allowed superannuation funds to effectively pressure the companies they invested in.
"The compulsory superannuation system has created a nation of savers and investors in listed companies," he said.
"With the majority of Australians effectively shareholders, pension funds in Australia can push for improved governance in the companies they invest in."
