Former chief executive Greg Miller left the company suddenly in late November citing the distraction of allegations in the media about the workplace culture under his leadership. Photo / Alex Burton
The number of employees at state-owned KiwiRail earning more than $100,000 jumped by more than 450 in the 2021 financial year, bringing the total number at this level to 1749.
The company employed 4200 people in 2021, according to its annual report.
KiwiRail, which has received more than $8 billionin financial support from the Government since 2017, posted an operating surplus of $63.2 million for the year ended June 30, up $23m year on year.
Revenue was $681.6m, up 7 per cent on the previous year.
The annual report shows that included in the total 1749 employees earning more than $100,000 in FY21, 86 were no longer employed as at June 30. This meant the net total of employees earning more than $100,000 at that date was 1663.
This compares to a net total of 1213 at June 30 FY20, and a total during that year of 1279.
Asked the reason for the jump in the number of higher earners, a KiwiRail spokeswoman said the information needed to answer that would not be available until January 10, when the corporate office reopened after the holiday break.
Rail and Maritime Transport Union secretary Wayne Butson said the figures support the union's belief that executive salaries at KiwiRail "are out of control".
"This is one of the reasons we believe that KiwiRail needs to be removed from being an SOE (state-owned enterprise) and should be a Crown entity so the SSC (State Services Commission) gets oversight."
The first national strike action by KiwiRail union members in 27 years was averted just before Christmas when the union and the company reached agreement on a 2021-2023 collective pay agreement. It provides for a flat hourly rate increase of $2.48 and a 4 per cent hourly rate increase from November 2022. The union had been seeking an 8 per cent rise.
Former chief executive Greg Miller, who left the company suddenly in late November citing the distraction of allegations in the media about the workplace culture under his leadership, received total remuneration of $997,452 in the year to June 30.
This was down on his total pay of $1,052,453 in FY20, and due to a voluntary, six month 20 per cent reduction in salary and benefits due to the financial impact of the pandemic.
These totals included salary and benefits. Miller received no extra "pay for performance" in either year. In FY19 the chief executive received $218,453 in performance pay, which took total remuneration in that year to $1,260,803.
It was reported in November the KiwiRail board had ordered an independent probe into the resignation of 20 senior managers, including deputy CEO and chief operating officer Todd Moyle.
Of Miller's resignation, acting chairwoman at the time Sue McCormack said he rejected claims in the media over the workplace culture, but felt it was in the best interests of himself, his family and the organisation that he step down.
The Government last month appointed former Westpac bank chief executive David McLean as chairman. It had been criticised for failing for more than six months to appoint a new chairman after the death of chairman Brian Corban. McLean officially starts in the job this week. His tenure is until October 2024.
Moyle, who is to join Ngai Tahu's commercial arm soon, became acting chief executive on Miller's exit.
The FY21 pay ranges showing the biggest increases in the number of recipients include those on $100,000-$110,000, which jumped from 366 in FY20 to 442, while those on $110,000-$120,000 went from 282 to 351 and staff on $120,000-$130,000 from 156 to 280.
The number of staff paid $130,000-$140,000 rose from 121 (FY20) to 163, while $140,000-$150,000 earners jumped from 81 to 131.
Further up the pay scale, staff who earned $260,000-$270,000 increased to seven from three the previous year, and those on $320,000-$330,000 rose from two to five.
However, the remuneration of the person in the second-to-top job was down in FY21 at $710,000-$720,000 compared to $750,000-$760,000 the previous year.
KiwiRail's freight division, which moves around 19 million tonnes of freight a year - 36 per cent of the national freight task deemed to be available to rail - posted total revenue of $393m in FY21, up 6 per cent on the previous year.
The annual report said the 2021 Budget had invested $1.3b in rail. Budget 2020 had allocated $1.2b and Budget 2019 $1b.
The FY21 capital expenditure spend was $1.05b, up from $257m five years ago, in 2016.
McCormack said the board's single biggest decision in the year had been to commit to the $1.45b to transforming the company's interisland ferry operation with two new large purpose-built rail ferries.
The annual report said an independent report had assessed the value of rail to the country at $1.7b-$2.1b a year.