Top city bosses’ wages hit $400,000
• John Masanauskas
• From: Herald Sun
• August 29, 2011 12:00AM
COUNCIL chief executives are on notice about their pay packets as the top municipal salary package breaks through $400,000. Several metropolitan council chiefs earn about $350,000, including bonuses, putting their salary packages up with the $365,000 a year paid to Prime Minister Julia Gillard.
Local Government Minister Jeanette Powell said she had asked her department to look at how managers were paid in other jurisdictions to see if councils could be better advised on appropriate CEO salaries. “Council CEO salaries have been raised with the peak bodies of the local government sector as part of discussions on a range of issues,” she said.
Melbourne City Council’s Kathy Alexander is the highest paid CEO, with a $425,000 annual package. A council spokeswoman said Dr Alexander was in charge of a $346 million budget and 1200 staff. “The role of a capital city CEO requires strong leadership and professional and technical expertise (and the salary) is reflective of the significant responsibility and expectation associated with the role,” she said.
Darebin Council CEO Rasiah Dev has a package of up to $349,000, while Boroondara’s Catherine Dale and Kingston’s John Nevins earn up to $340,000. Bayside CEO Adrian Robb earned up to $260,000 last year, but said his current pay could only be revealed through a personal inspection of a register at the council’s offices.
Mornington Peninsula Shire councillors have come under fire for renewing veteran CEO Michael Kennedy’s contract without advertising the position. Former Kennett government minister Robin Cooper said Mr Kennedy was first appointed in 1999 and it was a disgrace that councillors were not testing the market for the $319,000-plus perks job. But Mornington mayor Graham Pittock said councillors had voted to stick with Mr Kennedy after an external assessment.
Hobsons Bay councillor Tony Briffa said CEO salaries were rising too fast. However, Municipal Association of Victoria president Bill McArthur said CEOs ran big operations. Their salaries should be compared with those of public service heads, not politicians. “I believe council CEOs receive a justifiable salary for what is a pretty tough job,” he said. “When you look at similar roles in private enterprise, their remuneration goes into the millions of dollars, even for poor performance.”
masanauskasj@heraldsun.com.au
COMMENT: Ratepayers everywhere should be grateful to councillors at Hobson’s Bay, since they probably got the ball rolling on this contentious issue. On February 8th, 2011 they passed a resolution (in response to a Notice of Motion!!!!) which read:
“Moved Cr Tony Briffa, seconded Cr John Hogg, that the Council:
1. Writes to the Premier, (the Hon. Ted Baillieu), Minister for Local Government (the Hon. Jeanette Powell), the Shadow Minister for Local Government (the Hon. Richard Wynne), the members of the Victorian Legislative Assembly for Altona and Williamstown Districts and the members of the Victorian Legislative Council for the Western Metropolitan Region, recommending that the Minister for Local Government appoints a panel to conduct a public review into the remuneration of Victorian Local Government Chief Executive Officers;
2. Submits a motion for the consideration of the May 2011 meeting of the Municipal Association of Victoria State Council, seeking a resolution to support the request for a Local Government (CEO Remuneration Review) Panel; and
3. Requests the Victorian Local Governance Association support a Local Government (CEO Remuneration Review) Panel.”
Of course, setting a limit to CEO salaries only addresses half of the problem. When councils have 5 directors sitting on over $230,000 per annum (plus other fringe benefits) as Glen Eira does, then the argument becomes a lot easier that CEOs should receive heaps more. Perhaps one possible solution is cut the pay of underlings and that will stop the huge pay hikes for CEOs? and who, after all, establishes director pay scales and is in charge of hiring and firing?
