Treasury boss tops big earners list

John Whitehead. Photo / Mark Mitchell

Former Treasury Secretary John Whitehead received almost $1 million in pay for his final 11 months in the job, including a final pay cheque of almost $350,000 to cover "outstanding entitlements".

State Services Commissioner Iain Rennie yesterday released a report on public service and state sector bosses' pay during the year to June and Dr Whitehead topped the list with his pay of between $960,000 and $969,999 for his last 11 months' work. The State Services Commission doesn't provide exact figures to preserve a modicum of privacy.

During his time at Treasury, Dr Whitehead, who left at the end of May to take up a job in Washington as an executive director of the World Bank, urged the public service to do more with less.

Dr Whitehead's final pay was rivalled by that of former Police Commissioner Howard Broad who got a $333,398 golden handshake when he retired in March, taking his pay for the last nine months of his employment to between $770,000 and $779,995.

Ministry of Education chief executive Karen Sewell received pay of up to $669,999 including final pay of $111,052.

Entitlements "at last day of duty" include "retiring leave, or annual leave not taken", Mr Rennie said.

Overall remuneration figures included any benefit received including performance pay, employer contributions to superannuation, the value of use of a vehicle and any annual leave in excess of 20 days per annum.

Mr Rennie, whose role includes setting and reviewing the pay of public service chief executives, said their remuneration had fallen by 2 per cent during the 2010/2011 year and 3 per cent the year prior.

"This lower expenditure reflects an environment of fiscal restraint, setting modest remuneration expectations, and a reduced number of public service chief executives, as a result of agency amalgamations."

However many chief executives were paid more - in most cases the increases were in the order of $10,000.

Mr Rennie also has a role in advising on wider state sector bosses' pay rates such as health board and tertiary education chief executives' pay.

He said he expected the boards of those organisations "to exercise restraint when considering increases to chief executive remuneration, and to propose increases only where the chief executive has performed strongly or in exceptional circumstances.

One of the biggest pay increases was the $80,000 raise Waitemata District Health Board chief executive Dave Davies received, which took his pay in his last year in the job to between $480,000 and $489,999.

Mr Rennie's own pay increased by $30,000 last year, taking him to between $480,000 and $489,999.

The highest-paid unelected government employees were chief executives of SOEs, who earned as much as $1.3 million last year.