Salaries, investments, properties revealed for RBA monetary policy board members
Members of the board charged with making life-changing decisions for Aussie mortgage holders earn upwards of $1m a year and have impressive property and share portfolios, it can be revealed.
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Members of the board charged with making life-changing decisions for Aussie mortgage holders earn upwards of $1m a year and have impressive property and share portfolios, it can be revealed.
Some of the nine members of the Reserve Bank of Australia’s monetary policy board – and their spouses – also have complimentary memberships to the exclusive airline lounges, while many earn extra income sitting on other boards.
Homeowners and economists were left agape this week after the Reserve Bank announced its decision to leave the cash rate unchanged despite a cut being widely tipped.
The RBA’s decision – described as “soul crushing” for mortgage holders needing relief – was at odds with key economists and all four major banks who previously predicted a cut of 25 basis points.
Some economists say the shock decision threatened to undermine public confidence in the Reserve Bank following sweeping changes to its structure, communications and transparency rolled out since last year.
Independent economist Nicki Hutley said Tuesday’s decision caught financial markets and the public by surprise – financial markets were pricing in a 95 per cent chance of a cut – due to the RBA’s “failure” to effectively communicate its views on the economy in recent months.
“There’s some very curious things going on here, and I think their communication is very unclear,” she said.
“It’s wildly swerved, and I don’t think that’s helpful for building trust, or sending the right signals to the markets.
“And particularly these apparent violent swerves between meetings, in whether they’re confident or not confident about inflation – that’s a problem. If they were going to be far more conservative since the previous meeting, they needed to have somebody out there saying that.”
Ms Hutley suggested RBA board members were unlikely to be swayed by market predictions, and it may have used this week’s meeting to underline the uncertainty facing the global economy.
“To me there’s almost an element of the governor, or the Reserve Bank, flexing its muscles and saying, we’re not going to be dictated to,” she said.
“And we have seen that in past – where the bank has said the market’s getting a bit ahead of itself in one direction or another, and they have gone against expectations.
“If that’s the case, it’s not a very good reason not to go (cut). But it almost feels like that was the case.”
It’s not the first time the RBA and its governor have faced criticism over perceived communication failures.
RBA governor Michele Bullock’s predecessor Philip Lowe was accused of damaging the credibility of the RBA when interest rates started to rise in mid-2022, following his repeated statements that rates were unlikely to rise until “at least” 2024.
Treasurer Jim Chalmers later announced a comprehensive review of the RBA’s structure, decision-making process and transparency in July 2022.
Challenger chief economist Jonathan Kearns, who previously spent 28 years working at the RBA, said the current board would be wary of not falling into the same trap.
“I’m sure it’s on their mind, that they want to have better communication,” he said.
“The governor has actually been very cautious in not providing forward guidance because she didn’t want to fall into the perceived trap that governor Lowe did.”
One major change implemented for the first time this week was the unattributed release of votes at the RBA’s meeting, which revealed a 6-3 split in favour of holding the cash rate at 3.85 per cent.
While some have suggested the RBA should go further and release the details of how each board member voted, Treasurer Jim Chalmers said on Friday that the current regime struck the right balance.
“Because of the publication of these unattributed votes, we know that there were different views expressed around the boardroom table during this week’s decision, and that transparency is a welcome change,” he said.
Dr Kearns said that while other central banks like the Bank of England did disclose the voting records of interest rate decision makers, it was not appropriate in Australia given the current make-up of the RBA board.
“The members of their (Bank of England) policy committee – the majority of them are internal to the central bank, and those who are external are professional economists,” he said.
“Given our board has the Secretary to the Treasury as a voting member, it would be particularly awkward if that person’s vote was revealed.
“It would also heighten pressure on some of the board members, who are not in the RBA, who are very much part time – they might face more lobbying or questions about whether their votes are aligned with their interests outside of the RBA.”
The cash rate will remain at 3.85 per cent – at least until after the next meeting of the RBA’s monetary policy board on August 12.
But who’s actually on this board, which has such powerful influence on the lives of everyday Australians?
Nine people sit on the board, which is made up of economists and other finance professionals and is headed by Ms Bullock and her deputy Andrew Hauser.
Rate moderation is basically the only lever the RBA can pull to control inflation, support jobs, and keep the value of money steady.
The group meets in Sydney eight times a year, after the release of key economic data on inflation and economic activity.
Here’s a closer look at who they are:
Michele Bullock
Ms Bullock has been RBA governor since September 2023 and is chair of its monetary policy board.
She received a base salary of $1.13 million in 2023-24, according to the RBA’s annual report, and she’s in the job until September 2030.
Her salary for the most recent financial year is yet to be revealed.
Ms Bullock and her husband Ian have also been gifted memberships to the exclusive Qantas Chairman’s Lounge, as well as Virgin’s secret invite-only Australia Beyond membership.
According to her voluntary register of interests, last updated in this year, the couple sits on a multimillion-dollar property portfolio with two investment properties as well as their family home in Sydney’s inner-west.
Property records show the pair has owned the home since 1991, when they bought it for $285,000.
Current market estimates put its value around $3m.
Ms Bullock has not declared any shares in her name, however does have a managed fund with North Investments, and declared a margin loan, with an unspecified creditor.
Ms Bullock’s super is held with the Australian Retirement Trust.
Her husband has holdings in BHP, Telstra, AMP and Goodmans, as well as in various ETFs.
Ms Bullock is a career RBA staffer – she was previously its deputy governor and before that was assistant governor for its Financial System department.
Her register declares no income for herself, aside from her RBA salary, while her husband has income from a superannuation drawdown facility.
Outside of her RBA responsibilities, Ms Bullock has no company directorships but is chair of a registered charity, the Financial Markets Foundation for Children, which does not pay its directors.
She’s also a board member for The Anika Foundation, a charity which supports research into adolescent depression and suicide.
Andrew Hauser
The deputy chair received a base salary of $850,520 in 2023-24, according to the RBA’s annual report. His salary for the most recent financial year is yet to be revealed.
The former executive director for the Bank of England and wife Demelza share the Qantas and Virgin airline lounge perks enjoyed by Ms Bullock – but also have a similar arrangement with British Airways.
In his register of interests, Mr Hauser lists his former family home in Hertfordshire, England, – a five-bedroom semi-detached home in a quiet street of St Alban’s – as an investment property.
Real estate websites put its value around 1.3m pounds, or around $2.7m Australian dollars and rent from the property is listed as the couple’s only income aside from his RBA salary.
According to his register of interests, Mr Hauser and his wife avoid paying interest on their credit cards, writing under liabilities “any credit card exposures paid off within interest free period”.
Mr Hauser uses Australian Retirement Trust for his superannuation and can look forward to a Bank of England pension if he returns to his home country.
Mr Hauser is not a current director of any companies in Australia or the UK, but was a previous director of two UK companies linked to Bank of England up until February 2024.
Mr Hauser was tapped for the deputy job by Treasurer Jim Chalmers, with his impressive CV including a stint as chief of staff to the governor of England’s central bank in the aftermath of the global financial crisis.
He has also been an alternate executive director at the International Monetary Fund in Washington, DC.
Marnie Baker AM
Ms Baker is a non-executive member of the RBA monetary board, whose salaries are not itemised in the central bank’s annual reports.
She holds a Bachelor of Business (Accounting) from Latrobe uni.
A previous CEO of Bendigo and Adelaide Bank, and Deputy Chair of the Australian Banking Association, Ms Baker has more than 35 years’ experience in the banking sector.
Company records show Ms Baker is a current shareholder and director of major superannuation fund Australian Retirement Trust, whose board she joined in February this year as a member representative director.
While Ms Baker’s director fees are yet to be publicly reported, others in the role earned between $92,000 and $138,000 in 2023-24, according to the ART’s annual report.
She was recently also appointed a director of advocacy group Fintech Australia, which does not publish remuneration figures, and has an unpaid position as non-executive director for Regional Australia Institute.
Renée Fry-McKibbin
As a non-executive member of the RBA monetary board, Prof Fry-McKibbin’s salary is not itemised in the central bank’s annual reports.
The economist an Associate Dean for the College of Law, Governance and Policy at Australian National University.
Prof Fry-McKibbin is considered an expert in international macroeconomics and financial markets.
She is not listed as a current director or direct shareholder of any Australian companies.
Prof Fry-McKibbin sits on the Council of Advisors for the Australasian Macroeconomics Society, is a member of the Australasian Standing Committee of the Econometric Committee and is on the editorial board for industry publication Economic Record.
Ian Harper AO
Prof Harper is an RBA veteran, having hired now-governor Ms Bullock her for her first internship job while she was still at uni in 1983.
As a non-executive member, his RBA pay packet is not publicly accessible.
Prof Harper is former Dean of Melbourne Business School and current chair of the Australian Statistics Advisory Council, a role which earns him $39,880 a year.
He’s also chairman of the Clergy Remuneration and Working Conditions Committee, for the Anglican Diocese of Melbourne and is on the board for registered charity Arrow Leadership Australia, which does not pay members a fee.
He’s also a registered director of Melbourne theological Christian school Ridley College, an unpaid role.
Prof Harper is also a member of global management consulting firm Kearney (Australia and New Zealand) Advisory Group and a director of his own company, Harper Associates Australia.
Prof Harper is listed with an agency as a professional speaker, available for between $5000 and $10,000 per event.
He has been involved with some of the nation’s biggest economic reviews, including his namesake Harper Review into competition policy, and was inaugural chairman of the Australian Fair Pay Commission, prior to its replacement by Fair Work Australia.
Carolyn Hewson AO
The former investment banker was appointed in 2020.
While her salary is not itemised in the central bank’s annual reports, she does receive a healthy paycheck from her role as director of CSL. CSL’s 2023-2024 annual report reveals Ms Hewson pocketed more than $360,000 during that year.
Ms Hewson was previously an executive director of investment firm Schroders Australia and has extensive financial markets, risk management and investment management expertise.
She is also a former director of BHP, Stockland, BT Investment Management, Westpac, AGL, the Australian Gas Light Company, CSR, AMP, SA Water and the Economic Development Board of South Australia.
In 2001, Ms Hewson received a Centenary Medal in recognition of her contributions to Australian society through business leadership. Later, in the 2009 Queen’s Birthday Honours, she was appointed an Officer of the order of Australia for her community service, notably her support of charitable organisations such as the YWCA, as well as her contributions to the business sector.
Ms Hewson was awarded a Centenary Medal in 2001 for her service to Australian society in business leadership.
Dr Iain Ross AO
Dr Ross is a non-executive member of the RBA monetary policy board, whose salaries are not itemised in the central bank’s annual reports.
Picked by Labor in 2023 to join the monetary policy board, his appointment was backed by trade unions at the time.
Dr Ross presided over generous pay rises for low paid workers during his time as head of the Fair Work Commission. In the early 1990s, Dr Ross was assistant secretary to then-ACTU boss Bill Kelty.
He later served as a judge of the Supreme Court of Victoria and the Federal Court more than a decade until 2022.
Dr Ross is chair of the federal government’s Net Zero Economy Agency – a role that attracts a salary package of more than $440,000 according to the latest financial report in 2023-24.
He is also adjunct professor at the University of Sydney Business School and a fellow of the Academy of the Social Sciences in Australia.
Alison Watkins AM
Ms Watkins is a non-executive member of the RBA monetary policy board, whose salaries are not itemised in the central bank’s annual reports.
She is an experienced chief executive and director, having previously led two ASX-listed companies – first GrainCorp, where she was at the helm for four years, before a stint as group managing director at Coca-Cola Amatil, where she was reported to have earned a near $20m payday following the company’s sale to its European associate in 2021.
She earns more than $US240,000 ($360,000) from her current role as director of CSL (2023-24) and $270,000 as director of Wesfarmers (2023-24).
Remuneration from her other positions as director of PGA of Australia and Chancellor of the University of Tasmania are not publicly disclosed.
Ms Watkins was appointed to the RBA’s monetary policy board in 2020, and has previously held non-executive directorships at ANZ, Woolworths and Just Group.
Jenny Wilkinson PSM
Highly-credentialed Ms Wilkinson is the Australian Treasury Secretary – the first female leader in its 124 year-year history – as well as being an ex officio member of the RBA’s monetary policy board.
The economist’s Treasury salary is yet to be published, but her predecessor Steven Kennedy received around $960,000 in 2023-24.
Her RBA salary is not publicly available.
This week’s RBA meeting was the first one attended by Ms Wilkinson, but she is an RBA alumni, who began her career there as a cadet in the 1980s and stayed for around 10 years.
The public service medal winner, whose husband David Gruen is head of the Australian Bureau of Statistics, played a key role in the implementation of JobKeeper during the Covid pandemic.
Ms Wilkinson also sits on the Board of Taxation and Council of Financial Regulators.
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