Brown had made it clear to the mostly unelected directors no head of a council-controlled organisation (CCO) should be paid more than the Auckland Councilchief executive.
Brown announced in November acting chief executive Phil Wilson would become the permanent chief executive with a salary of $600,000.
Board chairman Richard Leggat, who comes from a corporate background where bonuses are common, said the bonus was exclusive among AT staff to Dean and an acknowledgement of the level of his position, the size and complexity of AT, and an incentive for him to perform exceptionally well.
Leggat said Kimpton’s salary remained the same as when he was appointed to his initial 18-month fixed term, at $620,000, plus a bonus of up to 15%. This would take his earnings up to $713,000, or 19% higher than Wilson’s salary.
Auckland Mayor Wayne Brown (left) and Auckland Transport chief executive Dean Kimpton. Image / NZ Herald graphic
“Given the size and scale of the role, the AT board has deemed it fair and appropriate for Mr Kimpton to be offered his current salary and a performance-based bonus of up to 15%. This is entirely dependent on meeting key performance indicators, which have been agreed with the AT board. The mayor was aware the AT board was considering a performance component to the chief executive’s remuneration,” Leggat said.
And in 2017, following a furore over rising salaries, council chief executive Stephen Town assured Goff council salaries did not include variable pay components such as bonuses and incentives common in the private sector.
A highly placed council source told the Herald the AT board obtained independent advice on Kimpton’s salary, which recommended a significantly higher figure than $620,000.
The AT board also brushed aside Brown’s desire for a proper recruitment process for a new chief executive and reappointed Kimpton without advertising the role. It is understood the mayor favoured AT’s head of public transport and active modes, Stacey van der Putten, for the job.
Wayne Brown favoured AT director of public transport and active modes Stacey van der Putten for the top job.
The appointment comes four weeks after Brown announced plans to “dethrone” AT and hand the reins to elected representatives.
“The layers of bureaucracy and management within AT are totally impenetrable to elected politicians. We ask for information and don’t get it. We tell AT through the letter of expectations what they should do, and they often don’t do it. They have made some progress on a few things, but there is no sense of urgency,” he told the Herald.
Leggat said during his 18 months, Kimpton had challenged the organisation to improve its service to Aucklanders, with a focus on network productivity and delivering great public transport services for Aucklanders.
“Under Dean’s leadership, the organisation’s structure has been redesigned to focus on doing the right things and doing them exceptionally well. We still have work to do to increase Aucklanders’ trust and confidence in AT but the board is very confident Dean is the right person to do this,” said Leggat.
