ifa can exclusively reveal that FPA chief executive Dante De Gori has a package of $335,000 and a potential bonus of 25 per cent for the financial year ending 30 June 2017.
FPA chair Neil Kendall confirmed the detail, explaining that Mr De Gori’s salary is reviewed and approved each year by the association’s remuneration and governance committee, on which two practitioner members sit.
ifa can also reveal that AIOFP executive director Peter Johnston has a salary package of $165,000 including GST. Mr Johnston is not an employee of the association but an independent contractor, which he says has additional benefits for members such as not burdening them with superannuation contributions.
Meanwhile, the AFA declined to provide specific details of individual CEO salary, with boss Philip Kewin telling ifa that the board of the association has opted not to provide this information publicly as a matter of policy in the past and that, were that policy to change, it would be announced in the form of an annual report to members.
The most recent AFA annual report indicates total staff expenses of $2.2 million across 13 individual staff members, up from $1.7 million in 2015.
The revelations come as an ifa straw poll with more than 450 responses found that 94.7 per cent of advisers believe professional associations should disclose their salaries.
Ha ha so it turns out that Dante and his “one staff member” are actually paid 1 million dollars a year.
I think we can safely conclude that the one staff member would be lucky to pull 50,000 a year. So Dante is on about 900,00 plus.
What a disgrace. His organisation will no doubt fold. Reminds me of the bloke who sucked the C.P.A. dry.
If in doubt, the comment “Aleks you might need to also ask about income from associated entities, bonuses and product rebates to fully understand the situation” relates to the AIOFP guy.
I’d like to hear him answer that one too.
here here!
Why is it that ASIC comes out and states the banks have at least several hundreds of cases of poor advice and the FPA rewards them with a discount whilst ordinary non aligned members of both association pay extra. Wouldn’t you lodge a bank tax on them.
Maybe ask the “consultant” what other “expenses” are paid by the association on his behalf?
Amazing how the Afa and IPA still are the odd ones out and refuse to disclose salaries
Look at the Cpa mess and what it has cost all professional associations
Time they all came clean if they have nothing to hide
The establishment of the Financial Advisers Consultative Committee (FACC) this year by ASIC is a means for ASIC and Government to liaise with the advice community. To me it’s a clear signal that ASIC understands that the FPA and AFA representation is conflicted. Should these guys now be paid as much, or receive a bonus when ASIC has come out and bi-passed the associations with the establishment of FACC ? Clearly ASIC and the Government understand that the FPA is in the pocket of the big banks & I wonder how long it will be before members wake up and demand change.
$2,200,000 divided by 13 equals $169,230 and 80 cents each
That’s a lot of money for part time admin staff.
I guess if you work for the insto’s as both the FPA and AFA do then you deserve an insto’s salary! What a joke the AFA and FPA are. And as to the AFA not disclosing, it does not take much to work out that the senior management are onto great earnings with no thought to the non insto members or customers.
cant believe I have been a member of fpa for 20 years and am only now hearing this information. nice job the IFA
As a full fee paying member of the FPA and not someone who had membership fee subsidized, at least I can take heart in knowing that their puppet masters, being the big four banks and AMP paid for Danti’s salary via the professional partner program. We call that being in there pocket. I used to think the FPA was the voice of advisers but clearly they only represent the big four banks and the institutions. If you’re getting wages that are paid from product manufacturers via the professional partner program it is little wonder that Government does not listen to them and we as advisers are coping the resulting flack. As advisers we call that payment method conflicted remuneration but the FPA and the AFA calls it Professional Partner fees. If all members paid a flat equal rate and we scraped this membership program then the need to pay large salaries would not be required and the opinions of the FPA would not be seen as the opinions of their puppet masters.
Danti gets a bonus based on the introduction of policies that results in advisers being handcuffed to the FPA and of course drives membership up regardless of adviser quality. Such successful measures include 1) relief from Opt in provisions for 3 years, but upon leaving the FPA you’re immediately in breach under the existing 2 year rule. 2) relief from TPB requirements are based on meeting ongoing CPD, this can only be evidenced by membership to a professional organization 3) Compulsory membership of FPA for CBA advisers, despite some 2,000 + incidents of poor advice and no criticism of the CBA whatsoever.
I’d have expected Dante to be on double that, minimum. The equivalent licensee CEO would be on 2-3 times that, more in cases. A half decent PDM/State Mgr can earn over 300 for heaven’s sake.
I’d be offended if a PDM earning under 250 was put in front of me to work on.my business. It stands to reason that I’d expect a CEO to be earning well over.
Your primary concern is the salary of your PDM and not whether they have financial planning experience, qualifications and/or have managed a Practice? A strange, off the topic post Mal.
Mal, Mal, Mal. I think your comment is a prime example of one of this industry’s biggest problems – quality is judged by income earned. No wonder there is so much distrust in the community.
This is an industry where average gets paid way too much. Average advisers earn way too much, poor advisers earn disgracefully too much. And PDMs ( and BDM counterparts ) are a prime institutional example of overpayment. There are some exceptions but generally the base salary of a PDM is possibly about right but once their bonuses are added, particularly in the institutionally owned segment, they are grossly overpaid not just in this industry but when compared to similar roles in other industries.
Just think how much lower an adviser’s fees would be, and by default a clients fees would be, if the multiple layers of cream skimmers were removed.
paying a PDM over $250K to just share a few ideas and sell you the latest head office product is a lot of money. Do you tell your clients that?
Aleks you might need to also ask about income from associated entities, bonuses and product rebates to fully understand the situation
If you want quality management you have to pay a good wage. Or they’ll work elsewhere. If you pay peanuts, you get monkeys.
As I sit here up to my neck in red tape whilst chasing up clients to sign opt in forms, and sign the forms to sell my sole & join AMP I think the words “quality management” could be debated. I’d actually like the Monkeys to be given a go as they might do a better job.
at least johnston’s salary is more akin to an actual adviser. dante’s is grssly enlarged, too much like a product provider
One wonders what the bonus component of Dante’s salary is based on and whether he will be paid it? As a member I would be very unhappy for the CEO to receive a bonus unless he successfully achieved the following tangible outcomes:
– Removal of Opt In requirement for FPA members (as originally promised)
– Removal of two year clawback from LIF
– Exemption from the financial advisers exam for real CFPs
On the basis of results in these areas, no bonus seems warranted.
I believe the bonus is based on the professional partner membership take up. The more large institutions pay or renew, the more his salary is. Hence why the FPA never cried foul against the recent CBA scandals and this is the reason why you’re having to do an annual exam, why opt in exists, and why the government dosen’t listen to them in any policy discussion as there voice is the voice of large product manufacturers.
Exam isn’t annual
Sorry, an exam. it probably will be soon if the FPA keeps going to the Government to get legislation changed. The Govt pretty much knows he’s just the puppet masters of the big four and AMP.
not good enough AFA. We members deserve better!
94.7% believed they should disclose salaries….Wouldn’t be the first time the AFA has shunned the wishes of its members!
Geezus, The AFA avg salary for staff is $169,000 each. did these guys used to work at Macquarie bank?