Post chief's move to Foreign Affairs brings big pay cut

New Zealand Post chief executive John Allen, who make about $1 million a year, will take a huge pay cut when he starts his new job as secretary of Foreign Affairs and Trade in July.

His salary will be more along the lines of departing secretary Simon Murdoch at just over $500,000, although that is high by core public service standards.

Mr Allen's appointment was officially confirmed yesterday by the State Services Commission.

Prime Minister John Key said he was "grumpy" that it had been leaked.

Mr Allen was tipped as a contender for the job as early as March 25 - before he was interviewed.

He is appointed for a five-year term.

State Services Commissioner Iain Rennie said last night he did not recall whether anybody in the Beehive had mentioned Mr Allen's name to him when he was recruiting for the post.

Mr Rennie said the Government had made it clear it wanted someone who had strong organisational skills, could manage change and could connect up "New Zealand Inc" overseas with economic and trade interests.

"The Government was quite explicit that to get a leader like that it was willing to put less emphasis on the chief executive being one of its key diplomatic advisers.

"I can never go and dial up Superman or Superwoman.

"All chief executives are going to come with particular strengths."

It is the first time a non-diplomat has been appointed to head Foreign Affairs.

But Reserve Bank Governor Alan Bollard was previously appointed to head the Treasury from outside the organisation - he had been chairman of the Commerce Commission.