Exclusive: Auckland Council hikes CEO's pay by 9.5%

The Auckland Ratepayers’ Alliance can reveal that Auckland Councillors today approved a 9.5% pay hike for their Chief Executive, Stephen Town, at a public excluded meeting of the Councillors. The Ratepayers' Alliance understand that Mr Town’s salary will increase from $630,000 to $690,000.

We received the tip off early this afternoon, and subsequent confirmation from a person within the Council.

Ratepayers will be staggered that at a time when approval of the Council is at an all time low, it is rewarding its Chief Executive with a 9.5% salary hike. With inflation close to zero, and so many ratepayers struggling in the lead up to Christmas, the decision is grotesque.

If the Council was performing well, this could almost be justified. However with a the current economic climate, the Council’s sky high debt and seeming inability to rein in costs, there is no justification whatsoever for an increase of this magnitude."

It’s these sort of decisions which led to the formation of the Ratepayers’ Alliance. Len Brown has handed ratepayers a big lump of coal for Christmas and we need to stop this culture of extravagance and backslapping.

Tell us what you think by clicking here.

UPDATE: $690,000 confirmed

The Council has just issued a press release confirming that we were right. 

Media release 

Chief executive remuneration package decided

17 December 2015 

Today Auckland Council’s Governing Body determined a new remuneration package of $690,000 for Chief Executive Stephen Town.

The Mayor and Councillors received recommendations from the CEO Review Committee. Chair of the CEO Review Committee, Councillor Christine Fletcher says, “The Committee has reviewed Mr Town’s performance over the past two years. He is an experienced chief executive and has brought about some very positive changes at council.”

“Mr Town’s remuneration is aligned with the council’s focus on providing sound financial stewardship and doing more with less without compromising customer service, community and citizens. It is ensured our workforce effectively serves a diverse and changing Auckland.”

The increase will come into effect from 15 January 2016 and will be fixed for a period of two years.

Key facts on CEO remuneration can be found on Our Auckland here.

Ends 

Nice of the Coucnil to link to "Our Auckland" - the Council-owed spin machine media service.