Webster criticised over CEO's $42,000

Penny Webster. Photo / Supplied

The former Mayor of Rodney, Penny Webster, has been criticised for giving $42,000 to her council's former chief executive as compensation for a lack of career development.

The Auditor-General yesterday released a review of the more than $2.5 million given to the chief executives of the eight old Auckland councils.

In it, Mrs Webster says $35,000 was given to Rodger Kerr-Newell for untaken professional development time and $7000 for his not receiving career transition advice.

The report said Mrs Webster did not seek council approval for the payments. Last night, she said they were part of Mr Kerr-Newell's employment agreement. But the Auditor-General's report says they were not.

Mrs Webster - now chair of the Auckland Council strategy and finance committee - said she had not read the report, but stood by her decision.

"It was part of his employment agreement. But also, the thing is that it's been a very stressful time for all the staff and I think the chief executive's done a particularly good job of helping everybody."

In the report, Mrs Webster and Mr Kerr-Newell said that council policy stated that up to 5 per cent of an employee's salary could be spent on "professional development opportunities".

Mrs Webster told the Herald she did not let Mr Kerr-Newell take these opportunities because she needed him to work, and so he was compensated.

"Normally, chief executives get time off to do professional training as part of the deal. And we asked him not to do that."

The report criticises Mrs Webster's decision to give him the $7000 and $35,000 grants, which, "although well intentioned", were not required under his employment agreement.

"We consider that they were, therefore, in breach of the ... Transitional Provisions Act," the report says.

It questions whether the grants were appropriate, given the redundancy payment - equal to nine months' pay - Mr Kerr-Newell received. His salary at Rodney was estimated in the middle of last year to be about $400,000.