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Home / New Zealand

Council approves $25,000 pay rise

By Emily Norman
Wairarapa Times-Age·
20 Aug, 2015 06:53 PM4 mins to read

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Display photo of knife cutting money - gold coins.

Display photo of knife cutting money - gold coins.

Wairarapa council chief executives are earning more than seven times the average income of the region.

Masterton District Council has announced an 11.9 per cent pay rise for CEO Pim Borren, increasing his annual salary to $235,000.

Council spokesman Sam Rossiter-Stead said the pay rise would assist in "correcting the gap", as Dr Borren's role had been "significantly underpaid".

"The work was undertaken independently by Strategic Pay Ltd, which specialises in salaries across the local government sector and compared MDC to similar rural and provincial councils around New Zealand," he said. "Following this process, council members acknowledge that this role has been significantly underpaid compared to chief executives at councils of the same size around New Zealand.

"To assist in correcting the gap, council agreed to increase the salary for 2015-16 to $235,000, which remains well below (around 85 per cent) the figure produced by Strategic Pay."

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Mayor Lyn Patterson said Dr Borren has led "significant organisational change, added capability to the senior management team, and achieved a financial result well within last year's budget". "He received a good performance review from council after his first 12 months in the job," she said. "Following the results of the job sizing process, we have begun a staged process to bring the chief executive's salary into line with other similar councils.

"In order to attract and retain high quality staff, we recognise it is essential to remunerate according to market rates."

Councillors voted on Dr Borren's pay rise in a public excluded meeting on August 5. The Times-Age understands it was not unanminous.

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One of the councillors who voted against the pay rise, Gary Caffell, said even though he was not in support of the increase, he appreciates the work that has been done by Dr Borren as CEO.

"I have been impressed with the impact made by Pim Borren in his first year as CEO and my decision not to support the increase should not be seen as any sort of criticism of his efforts thus far," Mr Caffell said.

"Rather it came down to Masterton's low median wage and the message it would give to many in our district who struggle to make ends meet."

Deputy Mayor Graham McClymont said it was a majority council decision which he was glad to have supported.

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"People are going to look at this locally," he said.

"But when you're appointing a CEO, you're actually competing nationally and even internationally to get a good person, so you've just got to get your head past it.

"And no, it's not what people in Masterton earn, but that's irrelevant.

"It's what you have to pay to get a good CEO with national experience."

Other councillors contacted by the Times-Age would not comment on their vote.

South Wairarapa District Council CEO Paul Crimp said his annual salary is $187,625, which includes an at-risk component of $10,000.

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South Wairarapa Mayor Adrienne Staples said Mr Crimp's contract is, however, still being negotiated.

"We haven't renewed his contract yet but we are in negotiation," she said.

"We can renew his contract for up to five years, but nothing has been signed."

The salary of Carterton District Council CEO Colin Wright is $175,000.

Mr Wright is due to retire from his position once a replacement is hired.

"The council and I have recently agreed to extend my employment until a replacement commences," Mr Wright said.

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"The position was advertised recently as I was due to retire last Friday after nine years in the role.

"There was no salary change with the extension."

Mr Wright said the new Carterton CEO salary had not yet been disclosed.

"The remuneration will be determined when a person is appointed to the role, which is not yet the case," he said.

"Their pay may be more than mine, or less, or even the same.

"There is no fixed rate for the job. It will depend upon experience and performance and take into account market rates for the type of job."

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Mr Wright said he had done some research and found that there are "at least 10 people in the Greater Wellington Regional Council being paid more than me and over a dozen in the Wellington City Council".

Regional media reported that Wellington City Council chief executive Kevin Lavery's salary for 2015/16 is $416,160, which is $8000 higher than last year.

According to 2013 census data, the average personal income for Wairarapa is $25,900.

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