Mike Baird reveals the surprise money worry behind new bank job

Mike Baird has revealed why he rejoined the business world just over a month after quitting politics: he needs the money, particularly more generous super contributions.

National Australia Bank (NAB) announced yesterday that the former New South Wales premier, who resigned in January for “family reasons”, had been hired as its new chief customer officer.

Baird yesterday defended his decision to take a job with the bank so soon after saying that he was stepping down so he could spend more time with his father, mother and sister, who were all suffering ill-health.

https://www.youtube.com/watch?v=qabk7J2GN_c

“I needed to get a job,” he said, according to The Daily Telegraph. “I don’t get a [parliamentary] pension, I don’t get any contribution from the taxpayer.”

As premier, Baird received just under $378,000 a year, excluding his electoral allowance.  

Because he joined parliament in 2007, Baird missed out on being part of the generous defined benefit pension for politicians that paid of up to 80 percent of their salary for life.  Nor will he receive other post-parliamentary perks that have been given in the past, such as staff, an office or free travel,

Instead, Baird was eligible for a 9.5 percent contribution to his superannuation savings, which he can access at retirement age, The Daily Telegraph reports.

Employers are mandated by the government to contribute 9.5 percent of salary into workers’ super pots.

Baird had worked as a banker, including for NAB, for 17 years before going into politics.

The Sydney Morning Herald reports that Baird can expect to be paid at least $2 million a year in his new job, based on the remuneration of NAB bankers already in similar roles.

NAB’s CEO Andrew Thorburn declined to comment on Baird’s pay, the SMH reported, but noted that it would be revealed in the company’s annual report.

Baird and other senior hires would be paid competitive rates, Thorburn said, “because a lot is expected of them.”

Is Mike Baird right to be worried that 9.5 percent super contributions aren’t enough, even on a high salary? Would you do the same if you were him?