Remuneration of Public Service and State sector senior … · Remuneration of Public Service and...

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Remuneration of Public Service and State sector senior staff

This part of the Annual Report is the State Services Commissioner’s report on the remuneration of chief executives and other senior personnel in the Public Service and State sector. This year I am reporting all Crown entity chief executive remuneration for the first time.

During this period of fiscal restraint, the Government expects the State sector to focus on using taxpayers’ money wisely and I have sought to ensure a restrained approach to the remuneration of chief executives across the State Services.

In section 1, I set out the policy for remunerating chief executives. In the following sections, I disclose the remuneration for those Public Service chief executives whose remuneration I set (Section 2); those chief executives whose remuneration, including my own, is set by the Remuneration Authority (Section 3) and where I have no influence; chief executives from other State sector organisations where consultation or my consent is required (Section 4); and chief executives of tertiary institutions where the board is required to seek my concurrence (Section 5). The final two sections of the report cover staff remuneration of $100,000 or more in $10,000 bands.

Section 1: Chief executive remuneration policyThe Commissioner’s role includes setting and reviewing the remuneration of Public Service7 chief executives, and advising on or approving the proposed terms and conditions of employment of Crown entity and subsidiary chief executives. The Commissioner therefore has a direct influence on the remuneration received by around 150 chief executive positions in the State sector.

The current Public Service chief executive remuneration policy is well established, continues to meet its objectives, and is designed to provide an environment in which high-quality leaders are attracted to and encouraged to perform in key roles. The main features of the policy are to:

link Public Service chief executive remuneration to chief executive remuneration • practice in the public sector8

provide flexibility and discretion for the Commissioner to set remuneration • within broad boundaries determined by the Governmentlink chief executives’ remuneration to their performance.•

7 The State Services Commissioner does not set remuneration for the chief executives of three Public Service departments: the State Services Commission, the Crown Law Office and the Government Communications Security Bureau.

8 The State sector plus the organisations of local government in New Zealand collectively make up the ‘public sector’.

G.3 State Services Commission Annual Report | 2010

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The key principles of the remuneration policy noted in recent Annual Reports remain the same. To reiterate, they are that the policy:

provides the ability to attract, retain and motivate suitable highly competent • chief executivesis fair and equitable, flexible and transparent• has integrity (is statistically sound)• is efficient and manageable• is legal• is affordable• meets the Government’s expectations for pay and employment conditions • in the State sectorsupports the business of government• inspires public confidence.•

The benchmark for both Public Service and State sector chief executives’ remuneration is the public sector, for which remuneration data is collected by the SSC through its annual chief executive remuneration survey. Apart from this, I also regularly monitor other markets to see how the public sector fits into the wider picture.

State Services Commissioner’s influence

Figure 1 below illustrates chief executive remuneration as at 1 March 2010, across the public sector, in terms of my degrees of influence:

Figure 1 – State Services Commissioner’s influence (total remuneration lines)

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0Increasing job size and complexity

ConsultNo influence Consent/concur Set

Dollars ($)

Data as at 1/3/10

State Services Commission Annual Report | 2010 G.3

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The solid line in Figure 1 shows Public Service chief executives’ remuneration as the line that I set. The two lines immediately above it show the remuneration of chief executives in the State sector whose remuneration I consent or concur to (mainly tertiary institutions and district health boards), and those that consult with me (the majority of Crown entities). The upper line shows the remuneration of chief executives of organisations over which I have no influence – organisations that are in the public sector but are local government bodies or trading enterprises operating in a commercial environment.

Figure 1 shows that chief executive roles are paid differently depending on their pay-setting arrangements. Figure 2 shows the remuneration and job size for the 10 largest Public Service chief executive roles where I set remuneration and the 12 largest Crown entity positions. Figure 2 illustrates two points. First, the largest Public Service chief executive roles tend to be larger in job size terms than the largest Crown entity roles and this is reflected in the remuneration paid for the largest Public Service jobs. Secondly, Figure 2 portrays in a different way the pattern revealed in Figure 1 that, on average, for jobs of a similar size, Crown entity remuneration is higher than in the Public Service.

Figure 2 – Remuneration by job size for the largest Public Service and Crown entity roles9

580,000

560,000

540,000

520,000

500,000

480,000

460,000

440,000

420,000

400,000Increasing job size and complexity

Public Service Crown entity

Dollars ($)

MidCentral DHBCounties Manukau DHB

TEC

SouthernDHB

NZTA

ACC

Waikato DHB

Bay of Plenty DHB

Capital & Coast DHB

Waitemata DHB

Canterbury DHB

Auckland DHB

Education

MAF

Inland Revenue

MED

DPMC

Health

Justice

Treasury

Social DevelopmentMFAT

9 As reported in Tables 1 and 5.


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The Public Service

The Government’s expectation is that I will provide strong leadership in the performance management of Public Service chief executives, and the SSC continues to develop its performance management programme to meet this expectation. I have shifted the emphasis from a retrospective analysis to a focus on real-time performance management. This means that I am agreeing a smaller, sharper set of critical expectations for chief executives, and am holding them to account for delivery against those expectations, but also providing them with higher-quality engagement with the SSC, and a greater level of support.

Section 43 of the State Sector Act 1988 makes the State Services Commissioner responsible to the relevant Minister/s for reviewing the performance of each chief executive. As I noted in the 2008/2009 Annual Report, in order to more closely link remuneration to the chief executives’ performance, as is required by the Public Service chief executive remuneration policy, from 1 July 2009 I have started to review each chief executive’s remuneration and determine their performance payments at the time of their section 43 performance review.

I have commented in previous years about my intention to reduce the disparity between the remuneration of Public Service chief executives and the remuneration of chief executives in equivalent sized jobs in the public sector (the benchmark group). This will continue to be a priority for me in coming years, particularly for those chief executives in the larger roles where there is the largest gap between remuneration in the Public Service and the wider State sector. The Government has decided to reduce the chief executive salary bill for 2010/2011. This reflects the impact of disestablishing a number of Public Service departments announced by the Government this year. Adjusting for this factor, I will continue to take a restrained approach to chief executive pay which is consistent with the broad approach being taken to remuneration generally in the State sector.

From 1 July 2010 the employer contribution to the Government Superannuation Fund for the Public Service has increased significantly, from 6 percent to 10.7 percent (equivalent to around 4 percent of remuneration for a chief executive). This will be reported in the 2010/2011 Annual Report as an increased cost of employment for approximately one-third of Public Service chief executives.

The State sector

The remuneration policy continues to form the basis of my advice on chief executive remuneration in the wider State sector (Crown entities and tertiary education institutions). I consider each proposal from a board or council regarding the terms and conditions of employment for their chief executive on its merits, taking into account individual circumstances, the Government policy of a conservative and modest approach, and any special business needs particular to the organisation. While the economy is recovering from the effects of the global recession, the Government’s finances are expected to be under pressure for some years to come. In this environment, the Government expects that remuneration changes across the State sector will be met within existing funding levels, will be responsible, and will demonstrate value for money.


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I continue to expect that councils and boards will exercise restraint when considering increases to chief executive remuneration and will propose increases only in exceptional circumstances or where the chief executive has performed strongly.

My decision about 2010 mid-point remuneration has been influenced by the continuing need for restraint, and as a result the 2010 mid-point remuneration has increased only marginally, and in some cases not at all.

The performance component in State sector chief executive remuneration packages is a discretionary component and not an automatic entitlement. I strongly urge boards and councils to continue to improve performance management systems and use the performance component effectively as a performance management tool, setting and voicing clear expectations, and offering guidance, support and professional development opportunities where appropriate.

While a number of Crown entities have disclosed the remuneration of their chief executives explicitly in their annual reports for some time, this has not been reported in all cases. To improve transparency about the remuneration of chief executives in the Crown entity sector, the tables in Sections 4 and 5 of this report show total remuneration of chief executives in the State sector and tertiary education sector respectively.

Conclusion

Chief executive remuneration in both the Public Service and the State sector is set in accordance with the policy approved by Cabinet. The remuneration I pay to Public Service chief executives, and either approve or am consulted about in the State sector, must be considered carefully, particularly as the economy continues to recover from the global recession. I continue to believe there should be a strong link between chief executives’ remuneration and their performance in the position, while taking into account individual circumstances and the Government policy of a conservative and modest approach.

Iain Rennie | State Services Commissioner


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Section 2: Chief executive remuneration – Public ServicePublic Service chief executive remuneration has both fi xed and variable

components. These are set out below.

Fixed remuneration

Salary(A)

Motor vehicle(B) 10 (cost deducted from salary)

Superannuation (C)

either: a. employer contribution to Government Superannuation Fund

or b. 10% of (A) above

Variable remuneration

Performance-related payment of up to 15% of the dollar value of (A) + (B) (D)

This year’s reporting on chief executive remuneration in the Public Service is more

complex than usual. This refl ects the shift from a remuneration round for Public

Service chief executives as a group decided late in each fi nancial year to a review of

each chief executive’s remuneration at the time of their annual performance review

which is scheduled through the course of the fi nancial year.

This Annual Report therefore reports the outcomes of two remuneration reviews,

looking at performance over two years, 2008/2009 and 2009/2010.

The fi nal group remuneration review for Public Service chief executives determined

the performance payment for 2008/2009 and any increases in fi xed remuneration,

which were effective from 1 July 2009. Eight chief executives received an increase

in fi xed remuneration from that date.

For individual chief executives, the outcome, in terms of annual remuneration, of

the 2008/2009 remuneration review is reported in the second column of Table 1.

In 2009 I made a commitment to maintain spending on Public Service chief

executive remuneration and related expenses in 2009/2010 at the level of expenses

incurred in 2008/2009. The fi nancial statements in this Annual Report show that

this commitment was met with 2009/2010 expenditure, $434,000 lower than in

2008/2009. The outcome for individual chief executives of the high level of

restraint exercised through the 2009/2010 remuneration reviews is shown in the

fi rst column of Table 1. By reducing performance payments for meeting

expectations from 10 percent to 7.5 percent, I was able to award some increases for

strong performance, particularly where the chief executive’s remuneration was at a

relatively low level in terms of the relevant remuneration range.

10 Motor vehicles are no longer available to chief executives who did not have them as part of their remuneration packages as at September 2007.


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For the 24 Public Service chief executives for whom the 2009/2010 remuneration and performance reviews have been completed and where relevant comparison can be made with the outcome of the 2008/2009 remuneration review there are:

No total remuneration changes for thirteen chief executives• Total remuneration decreases for five chief executives• Total remuneration increases for six chief executives.•

In the case of three Public Service chief executives (The Serious Fraud Office, the Ministry of Transport and the Department of the Prime Minister and Cabinet), 2009/2010 remuneration reviews were not completed at the time of finalisation of this Annual Report.

Comparisons between 30 June 2010 and earlier periods have not been provided for three chief executives as they would not present an accurate picture of how the remuneration of the current chief executive has moved between years. In two of these cases (Serious Fraud Office and the Ministry of Foreign Affairs and Trade), new chief executives took up their positions in 2009/2010 and therefore earlier period comparisons relate to the previous incumbent.

The chief executive of the Ministry for Culture and Heritage took up his position in late 2008/2009 and therefore was not eligible for a performance payment in that year.

Table 1 is the closest approximation to the current rate for each job. The 30 June 2010 figures are made up of the fixed remuneration as at 30 June 2010, plus the annualised value of any pro rata performance payment relating to the 2009/2010 financial year. It gives a useful picture of the effective annual pay package for each chief executive. The 1 July 2009 figures are made up of the fixed remuneration as at 1 July 2009, plus any performance payment relating to the 2008/2009 financial year that was paid in the 2009/2010 financial year. The 30 June 2009 figures are made up of the fixed remuneration as at 30 June 2009, plus any performance payment relating to the 2007/2008 year and that was paid during the 2008/2009 year.

Table 1: Annual remuneration packages for Public Service chief executive positions as at 30 June 2010, where appointment is made by the State Services Commissioner

Position11

Remuneration at 30 June 2010 plus performance payment for 2009/10 (end of reporting period)

Remuneration at 1 July 2009 plus performance payment for 2008/09 (start of reporting period)

Remuneration at 30 June 2009 plus performance payment for 2007/08

Ministry of Pacific Island Affairs $240,000 to $249,999

$250,000 to $259,999

$240,000 to $249,999

Ministry of Women’s Affairs $260,000 to $269,99912

$260,000 to $269,999

$260,000 to $269,999

National Library of New Zealand $270,000 to $279,999

$280,000 to $289,999

$280,000 to $289,999

11 Archives New Zealand and the Ministry of Research, Science and Technology are not included as they had acting chief executives at 30 June 2010 and are to be merged with other agencies. The New Zealand Food Safety Authority (NZFSA) is not included as it merged with the Ministry of Agriculture and Forestry on 1 July 2010.

12 As at 30 June 2010 the Chief Executive of the Ministry of Women’s Affairs was an acting chief executive. This sum reflects the remuneration of the previous permanent chief executive.


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Position11




Serious Fraud Office $300,000 to $309,99913

N/A – New CE appointed in 2009/10


Education Review Office $310,000 to $319,999

$310,000 to $319,999

$300,000 to $309,999

Statistics New Zealand $310,000 to $319,999

$310,000 to $319,999

$300,000 to $309,999

Department of Building and Housing

$320,000 to $329,999

$320,000 to $329,999

$310,000 to $319,999

Ministry for Culture and Heritage $320,000 to $329,999



Ministry for the Environment $320,000 to $329,999

$320,000 to $329,99914


Ministry of Fisheries $340,000 to $349,999

$340,000 to $349,999

$330,000 to $339,999

Department of Conservation $350,000 to $359,999

$340,000 to $349,999

$330,000 to $339,999

Land Information New Zealand $350,000 to $359,999

$350,000 to $359,999


Ministry of Defence $360,000 to $369,999

$360,000 to $369,999

$360,000 to $369,999

Ministry of Transport $360,000 to $369,99915

$350,000 to $359,99916


Ministry of Mäori Development $380,000 to $389,999

$390,000 to $399,999

$390,000 to $399,999

Department of Internal Affairs $390,000 to $399,999

$410,000 to $419,999

$360,000 to $369,999

New Zealand Customs Service $390,000 to $399,999

$390,000 to $399,999

$390,000 to $399,999

Department of Corrections $400,000 to $409,999

$390,000 to $399,999

$390,000 to $399,999

Department of Labour $430,000 to $439,999

$430,000 to $439,999

$420,000 to $429,999

11 Archives New Zealand and the Ministry of Research, Science and Technology are not included as they had acting chief executives at 30 June 2010 and are to be merged with other agencies. NZFSA is not included as it merged with the Ministry of Agriculture and Forestry on 1 July 2010.

13 Figure includes fixed remuneration only. The 2009/2010 performance payment had not been determined at the time of finalising this report.

14 Includes a pro rata performance payment for the period 21 July 2008–30 June 2009.15 The chief executive’s performance payment for the 2008/2009 year, rather than the 2009/2010 year, has been used to

calculate this figure. A performance payment for the 2009/2010 year had not been determined at the time of finalising this report.

16 Includes a pro rata performance payment for the period 29 September 2008–30 June 2009.


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Position11




Ministry of Economic Development $440,000 to $449,999

$450,000 to $459,999


Ministry of Agriculture and Forestry $450,000 to $459,999

$440,000 to $449,999

$430,000 to $439,999

Inland Revenue Department $460,000 to $469,999

$440,000 to $449,999

$430,000 to $439,999

Department of the Prime Minister and Cabinet

$490,000 to $499,99917

$490,000 to $499,999

$480,000 to $489,999

Ministry of Education $500,000 to $509,999

$480,000 to $489,999

$470,000 to $479,999

Ministry of Justice $530,000 to $539,999

$520,000 to $529,999

$500,000 to $509,999

Ministry of Health $540,000 to $549,999

$540,000 to $549,999

$550,000 to $559,999

Treasury $560,000 to $569,999

$560,000 to $569,999

$550,000 to $559,999

Ministry of Foreign Affairs and Trade

$570,000 to $579,99918



Ministry of Social Development $570,000 to $579,999

$570,000 to $579,999

$550,000 to $559,999

Table 2 below shows the actual amount paid to a chief executive, or acting chief executive, while they held the position during the course of the year. In previous annual reports, we have reported performance payments relating to the previous financial year because they were paid in the year of the Annual Report. This year, the remuneration figures reported in Table 2 include any performance payment awarded for the 2008/2009 financial year and any pro rata performance payment awarded in 2009/2010 at the time of their performance reviews. If the chief executive left during the year, the sum also includes the payment of end of contract entitlements. These typically include annual leave not taken at the time of departure and in some cases retiring leave.

In combination, Tables 1 and 2 give the public a fair picture of the rates of pay for Public Service chief executives as well as confidence that any one-off payments, typically made around the end of contract, are disclosed.

11 Archives New Zealand and the Ministry of Research, Science and Technology are not included as they had acting chief executives at 30 June 2010 and are to be merged with other agencies. NZFSA is not included as it merged with the Ministry of Agriculture and Forestry on 1 July 2010.

17 The chief executive’s performance payment for the 2008/2009 year, rather than the 2009/2010 year, has been used to calculate this figure. A performance payment for the 2009/2010 year had not been determined at the time of finalising this report.

18 Figures include actual performance payment for the period 27 July 2009–26 July 2010.


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Table 2: Total remuneration received by Public Service chief executives and acting Public Service chief executives appointed by the State Services Commissioner for the period 1 July 2009 to 30 June 2010

Department Remuneration band Effective date

Archives New Zealand Under $100,00019

$180,000 to $189,999

Department of Building and Housing

$340,000 to $349,99920

Department of Conservation $360,000 to $369,99920

Department of Corrections $410,000 to $419,99920

Department of Internal Affairs $430,000 to $439,99920

Department of Labour $440,000 to $449,99920

Department of the Prime Minister and Cabinet

$490,000 to $499,999

Education Review Office $330,000 to $339,99920

Inland Revenue Department $460,000 to $469,99920

Land Information New Zealand $360,000 to $369,999

Ministry for Culture and Heritage

$320,000 to $329,999

Ministry for the Environment $320,000 to $329,999

Ministry of Agriculture and Forestry

$460,000 to $469,99920

Ministry of Defence $390,000 to $399,99920

Ministry of Economic Development

$450,000 to $459,999

Ministry of Education $520,000 to $529,99920

Ministry of Fisheries $360,000 to $369,99920

Ministry of Foreign Affairs and Trade

$210,000 to $219,99921

Under $100,000 1 July 2009 to 26 July 2009

$500,000 to $509,999 27 July 2009 to 30 June 2010

Ministry of Health $550,000 to $559,999

Ministry of Justice $540,000 to $549,99920

Ministry of Mäori Development $400,000 to $409,99920

Ministry of Pacific Island Affairs $260,000 to $269,99920

Ministry of Research, Science and Technology

$310,000 to $319,99920,22 1 July 2009 to 9 April 2010

Under $100,000 10 April 2010 to 30 June 2010

Ministry of Social Development $590,000 to $599,99920

Ministry of Transport $360,000 to $369,999

Ministry of Women’s Affairs $310,000 to $319,99920,22 1 July 2009 to 18 June 2010

Under $100,000 19 June 2010 to 30 June 2010

19 Payment of contractual entitlements for the previous chief executive whose last day of duty was 10 June 2009.20 Figure includes chief executives’ performance payment for 2008/2009 and prorated performance payment for 2009/2010. 21 Payment of contractual entitlements for the previous chief executive whose last day of duty was 12 June 2009.22 Includes payment of contractual entitlements at last day of duty.


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Department Remuneration band Effective date

National Library of New Zealand $290,000 to $299,99920

New Zealand Customs Service $420,000 to $429,99920

New Zealand Food Safety Authority

$610,000 to $619,99920,23

Serious Fraud Offi ce $110,000 to $119,99920,22 1 July 2009 to 4 November 2009

Under $100,000 5 November 2009 to 29 November 2009

$170,000 to $179,999 30 November 2009 to 30 June 2010

Statistics New Zealand $330,000 to $339,99920

Treasury $590,000 to $599,99920

Table 3: Public Service chief executive appointments, reappointments and departures

During 2009/2010 the following chief executives were appointed under section 35 of the State Sector Act 1988 and commenced in their roles:

Mr John Allen Ministry of Foreign Affairs and Trade

Mr Adam Feeley Serious Fraud Offi ce

During 2009/2010 the following chief executives’ reappointments took effect under section 36 of the State Sector Act 1988:

Ms Katrina Bach Department of Building and Housing

Mr Leith Comer Ministry of Mäori Development

The following chief executives left their positions during the 2009/2010 year:

Mr William (Grant) Liddell Serious Fraud Offi ce Term ended

Dr Helen Anderson Ministry of Research, Science and Technology

Term ended

Ms Shenagh Gleisner Ministry of Women’s Affairs

Term ended

Mr Andrew McKenzie New Zealand Food Safety Authority24

Term ended

20 Figure includes chief executives’ performance payment for 2008/2009 and prorated performance payment for 2009/2010. 22 Includes payment of contractual entitlements at last day of duty. 23 Payment of contractual entitlements for the previous chief executive whose last day of duty was 30 June 2009.24 The New Zealand Food Safety Authority was disestablished on 30 June 2010 and its functions transferred to the Ministry

of Agriculture and Forestry from 1 July 2010.


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Section 3: Chief executive remuneration – Remuneration Authority jurisdictionThe chief executives included in the table below have their remuneration set by

the Remuneration Authority. The Cabinet has requested that the remuneration

for chief executives of organisations, under the jurisdiction of the Remuneration

Authority, that are not listed here be included in the annual reports of those

organisations. Remuneration is reported for the fi nancial year 1 July 2009 to

30 June 2010, in $10,000 bands.

Table 4: Total remuneration received by chief executives and other senior staff under the jurisdiction of the Remuneration Authority

Remuneration band25 Organisation Effective date26

Under $100,000 Controller and Auditor-General22 To 22 July 2009

$100,000 to $109,999 -

$110,000 to $119,999 -

$120,000 to $129,999 -

$130,000 to $139,999 -

$140,000 to $149,999 -

$150,000 to $159,999 -

$160,000 to $169,999 -

$170,000 to $179,999 -

$180,000 to $189,999 -

$190,000 to $199,999 -

$200,000 to $209,999 -

$210,000 to $219,999 -

$220,000 to $229,999 -

$230,000 to $239,999 -

$240,000 to $249,999 -

$250,000 to $259,999 Parliamentary Commissioner for the Environment

$260,000 to $269,999 -

$270,000 to $279,999 -

$280,000 to $289,999 -

$290,000 to $299,999 Controller and Auditor-General

Director of the Government Communications Security Bureau

From 5 October 2009

$300,000 to $309,999 Clerk of the House of Representatives

$310,000 to $319,999 -

22 Includes payment of contractual entitlements at last day of duty. 25 The sums reported in the table are largely consistent with the requirements of section 211 of the Companies Act 1993.

The sums refl ect the total remuneration received by the employee in 2009/2010.26 Several chief executives were appointed or left during the year. The ‘effective date’ is the date from which, or up to

which, the chief executive served in the role. There are two entries for some organisations that had two chief executives during 2009/2010.


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$320,000 to $329,999 Chief Ombudsman

General Manager of the Parliamentary Service

$330,000 to $339,999 Chief Parliamentary Counsel

Deputy State Services Commissioner

Director of the New Zealand Security Intelligence Service

$340,000 to $349,999 -

$350,000 to $359,999 -

$360,000 to $369,999 -

$370,000 to $379,999 -

$380,000 to $389,999 -

$390,000 to $399,999 -

$400,000 to $409,999 -

$410,000 to $419,999 -

$420,000 to $429,999 Chief of the New Zealand Defence Force

$430,000 to $439,999 -

$440,000 to $449,999 -

$450,000 to $459,999 State Services Commissioner

$460,000 to $469,999 -

$470,000 to $479,999 -

$480,000 to $489,999 -

$490,000 to $499,999 -

$500,000 to $509,999 Commissioner of Police

$510,000 to $519,999 -

$520,000 to $529,999 -

$530,000 to $539,999 Solicitor-General

24 The sums reported in the table are largely consistent with the requirements of section 211 of the Companies Act 1993. The sums reflect the total remuneration received by the employee in 2009/2010.

25 Several chief executives were appointed or left during the year. The ‘effective date’ is the date from which, or up to which, the chief executive served in the role. There are two entries for some organisations that had two chief executives during 2009/2010.


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29 Includes payment of contractual entitlements at last day of duty.

Section 4: Chief executive remuneration – other State sectorThe following table presents remuneration information for the chief executives of Statutory entities and Crown entity subsidiaries where the State Services Commissioner has an influence over a chief executive’s remuneration. The boards of the district health boards (DHBs) are required to seek the State Services Commissioner’s consent, while the boards of the other entities listed are required to consult the State Services Commissioner. The information in Table 5 is included to provide consistency and transparency across the sector, and improve accountability for this aspect of public expenditure. Agencies that are not Crown entities but are required by their enabling legislation to consult the State Services Commissioner on their chief executive’s remuneration are not included.

The table below presents the total remuneration received by each chief executive for the financial year 1 July 2009 to 30 June 2010.

Table 5: Total remuneration received by chief executives in State Sector agencies where consultation with, or the consent of, the State Services Commissioner is required


Under $100,000 Earthquake Commission

Te Taurawhiri i Te Reo Mäori (Mäori Language Commission)29

From 1 March 2010

From 16 April 2010 to 25 June 2010

$100,000 to $109,999 -

$110,000 to $119,999 Drug Free Sport New Zealand

$120,000 to $129,999 Social Workers Registration Board

$130,000 to $139,999 New Zealand Walking Access Commission

From 13 July 2009

$140,000 to $149,999 Broadcasting Standards Authority

Te Taurawhiri i Te Reo Mäori (Mäori Language Commission)29

To 12 February 2010

$150,000 to $159,999 -

$160,000 to $169,999 -

$170,000 to $179,999 Catalyst Risk Management Ltd

Museum of New Zealand Te Papa Tongarewa29

New Zealand Artificial Limb Board

Te Mangai Paho

To 17 July 2009

$180,000 to $189,999 Families Commission

Health Sponsorship Council

New Zealand Teachers Council

$190,000 to $199,999 Telarc SAI Ltd


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$200,000 to $209,999 Alcohol Advisory Council of New Zealand

Human Rights Commission

Qualmark New Zealand Ltd29

Real Estate Agents Authority

Tourism New Zealand

Transport Accident Investigation Commission

To 14 April 2010

From 17 November 2009

From 18 January 2010

$210,000 to $219,999 Antarctica New Zealand

Tourism New Zealand29 To 1 December 2009

$220,000 to $229,999 Dispute Resolution Services Ltd

New Zealand Symphony Orchestra

$230,000 to $239,999 Charities Commission

New Zealand Film Commission

New Zealand Historic Places Trust

Takeovers Panel

$240,000 to $249,999 Arts Council of New Zealand

Earthquake Commission29

International Accreditation New Zealand

To 26 February 2010

$250,000 to $259,999 New Zealand Trade and Enterprise29

West Coast DHB

To 24 December 2009

$260,000 to $269,999 Crown Health Financing Agency

Standards New Zealand

Wairarapa DHB

$270,000 to $279,999 Electricity Commission

Energy Efficiency and Conservation Authority

Health Research Council of New Zealand

Tairawhiti DHB

$280,000 to $289,999 Environmental Risk Management Authority

Hawke’s Bay DHB

Pharmaceutical Management Agency

From 28 October 2009

$290,000 to $299,999 Civil Aviation Authority

Maritime New Zealand

Broadcasting Commission (NZ On Air)

$300,000 to $309,999 South Canterbury DHB





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$310,000 to $319,999 New Zealand Blood Service

Whanganui DHB

$320,000 to $329,999 Career Services

Hutt Valley DHB29

Northland DHB

To 1 February 2010

$330,000 to $339,999 Sport and Recreation New Zealand

$340,000 to $349,999 Hobsonville Land Company

$350,000 to $359,999 -

$360,000 to $369,999 Lakes DHB

Taranaki DHB

$370,000 to $379,999 Commerce Commission

Nelson Marlborough DHB

New Zealand Fire Service Commission

$380,000 to $389,999 New Zealand Qualifications Authority

$390,000 to $399,999 -

$400,000 to $409,999 Foundation for Research, Science and Technology

Waitemata DHB

$410,000 to $419,999 Public Trust

$420,000 to $429,999 Bay of Plenty DHB

Capital & Coast DHB

$430,000 to $439,999 Housing New Zealand Corporation

Waikato DHB

$440,000 to $449,999 Canterbury DHB

Guardians of New Zealand Superannuation

New Zealand Lotteries Commission

$450,000 to $459,999 -

$460,000 to $469,999 -

$470,000 to $479,999 -

$480,000 to $489,999 Counties Manukau DHB

MidCentral DHB

$490,000 to $499,999 Tertiary Education Commission

$500,000 to $509,999 Southern DHB

$510,000 to $519,999 -

$520,000 to $529,999 -





28


$530,000 to $539,999 -

$540,000 to $549,999 Auckland DHB

$550,000 to $559,999 Accident Compensation Corporation

$560,000 to $569,999 New Zealand Transport Agency




29

29 The sums reported in the table are largely consistent with the requirements of section 211 of the Companies Act 1993. The sums reflect the total remuneration received by the employee in 2009.

30 Several chief executives were appointed or left during the year. The ‘effective date’ is the date from which, or up to which, the chief executive served in the role. There are two entries for some organisations that had two chief executives during 2009.


Section 5: Chief executive remuneration – Tertiary education sectorThe table below presents the total remuneration received by chief executives in the tertiary education sector. The boards of these agencies are required to seek the State Services Commissioner’s concurrence for their chief executive’s remuneration. The information is for the last completed financial year, 1 January 2009 to 31 December 2009.

Table 6: Total remuneration received by chief executives in the tertiary education sector


Under $100,000 Aoraki Polytechnic31 To 10 February 2009

$100,000 to $109,999 The Open Polytechnic of New Zealand31 To 25 January 2009

$110,000 to $119,999 Aoraki Polytechnic From 8 June 2009

$120,000 to $129,999 -

$130,000 to $139,999 -

$140,000 to $149,999 -

$150,000 to $159,999 -

$160,000 to $169,999 -

$170,000 to $179,999 Te Wänanga-o-Raukawa

$180,000 to $189,999 -

$190,000 to $199,999 Tairawhiti Polytechnic

Telford Rural Polytechnic

$200,000 to $209,999 -

$210,000 to $219,999 Te Whare Wänanga o Awanuiärangi

Western Institute of Technology Taranaki

$220,000 to $229,999 Tai Poutini Polytechnic

The Open Polytechnic of New Zealand From 26 January 2009

$230,000 to $239,999 Bay of Plenty Polytechnic

Nelson Marlborough Institute of Technology

Southern Institute of Technology

$240,000 to $249,999 -

$250,000 to $259,999 -

$260,000 to $269,999 Eastern Institute of Technology

Northland Polytechnic

Waiariki Institute of Technology


30


$270,000 to $279,999 -

$280,000 to $289,999 Te Wänanga-o-Aotearoa

$290,000 to $299,999 Whitireia Community Polytechnic

$300,000 to $309,999 Otago Polytechnic

Wellington Institute of Technology

$310,000 to $319,999 Manukau Institute of Technology

$320,000 to $329,999 Unitec Institute of Technology

Universal College of Learning

$330,000 to $339,999 Christchurch Polytechnic Institute of Technology

Lincoln University

$340,000 to $349,999 -

$350,000 to $359,999 Waikato Institute of Technology

$360,000 to $369,999 -

$370,000 to $379,999 -

$380,000 to $389,999 -

$390,000 to $399,999 -

$400,000 to $409,999 University of Waikato

$410,000 to $419,999 -

$420,000 to $429,999 -

$430,000 to $439,999 -

$440,000 to $449,999 Auckland University of Technology

Victoria University of Wellington

$450,000 to $459,999 University of Canterbury32 From 1 February 2009

$460,000 to $469,999 -

$470,000 to $479,999 Massey University

$480,000 to $489,999 -

$490,000 to $499,999 -

$500,000 to $509,999 -

$510,000 to $519,999 -

$520,000 to $529,999 -

$530,000 to $539,999 -

$540,000 to $549,999 -

$550,000 to $559,999 University of Otago

$560,000 to $569,999 -



32 2008 remuneration wrongly reported in last year’s Annual Report.


31


$570,000 to $579,999 -

$580,000 to $589,999 -

$590,000 to $599,999 -

$600,000 to $609,999 -

$610,000 to $619,999 University of Auckland




32

Section 6: Staff remuneration – Public Service and Remuneration Authority jurisdictionThe following two tables present the number of staff other than chief executives (or their equivalent) that received remuneration of $100,000 or more in the last financial year.

The information in Table 7 relates to all those organisations whose chief executives are shown in Table 1, and all those in Table 4, except the Police and the New Zealand Defence Force. The relevant information for these two organisations appears in their own annual reports. The 4,944 employees reported here represent 10 percent of the combined workforce of the organisations concerned. The number of employees receiving $100,000 or more has increased 4 percent this year, compared with 26 percent last year.

Table 7: Number of staff in the Public Service and organisations whose chief executives are under Remuneration Authority jurisdiction who received total remuneration of $100,000 or more in the year from 1 July 2009 to 30 June 2010, excluding chief executives

Remuneration band33

Number of staff 2009/2010

Number of staff 2008/2009 Difference

$100,000 to $109,999 1,298 1,233 5%

$110,000 to $119,999 916 884 4%

$120,000 to $129,999 710 646 10%

$130,000 to $139,999 507 464 9%

$140,000 to $149,999 314 345 -9%

$150,000 to $159,999 232 274 -15%

$160,000 to $169,999 206 196 5%

$170,000 to $179,999 173 147 18%

$180,000 to $189,999 136 123 11%

$190,000 to $199,999 96 93 3%

$200,000 to $209,999 92 87 6%

$210,000 to $219,999 52 59 -12%

$220,000 to $229,999 44 40 10%

$230,000 to $239,999 27 34 -21%

$240,000 to $249,999 26 28 -7%

$250,000 to $259,999 25 33 -24%

$260,000 to $269,999 23 13 77%

$270,000 to $279,999 13 18 -28%

$280,000 to $289,999 11 13 -15%

$290,000 to $299,999 8 12 -33%



33

Remuneration band33

Number of staff 2009/2010

Number of staff 2008/2009 Difference

$300,000 to $309,999 9 5 80%

$310,000 to $319,999 3 4 -25%

$320,000 to $329,999 3 4 -25%

$330,000 to $339,999 2 2 0%

$340,000 to $349,999 4 2 100%

$350,000 to $359,999 6 5 20%

$360,000 to $369,999 2 2 0%

$370,000 to $379,999 3 2 50%

$380,000 to $389,999 - - -

$390,000 to $399,999 1 - -

$400,000 to $409,999 1 - -

$410,000 to $419,999 - 1 -100%

$420,000 to $429,999 - - -

$430,000 to $439,999 1 - -

$440,000 to $449,999 - 1 -100%

$450,000 to $459,999 - - -

$460,000 to $469,999 - - -

$470,000 to $479,999 - - -

$480,000 to $489,999 - - -

$490,000 to $499,999 - 1 -100%

Total 4,944 4,771 4%



34

Section 7: Staff remuneration – Tertiary education sector The information in the following table covers all those organisations whose chief executives are shown in Table 6. Some of the organisations did not have any staff who received total remuneration of $100,000 or more. The 4,240 employees reported here represent 13 percent of the tertiary education sector workforce. The number of employees receiving $100,000 or more has increased 21 percent this year, compared with 28 percent last year. The growth in the number appearing in the table is influenced by various factors, including increases in collective agreement rates for senior university staff and progression between salary steps.

Table 8: Number of staff in the tertiary education sector who received total remuneration of $100,000 or more in the year from 1 January 2009 to 31 December 2009, excluding chief executives

Remuneration band34

Number of staff 2009

Number of staff 2008 Difference

$100,000 to $109,999 1,165 1,057 10%

$110,000 to $119,999 834 702 19%

$120,000 to $129,999 635 485 31%

$130,000 to $139,999 411 321 28%

$140,000 to $149,999 317 234 35%

$150,000 to $159,999 187 197 -5%

$160,000 to $169,999 163 139 17%

$170,000 to $179,999 134 102 31%

$180,000 to $189,999 93 62 50%

$190,000 to $199,999 56 41 37%

$200,000 to $209,999 53 34 56%

$210,000 to $219,999 44 38 16%

$220,000 to $229,999 36 24 50%

$230,000 to $239,999 24 19 26%

$240,000 to $249,999 22 15 47%

$250,000 to $259,999 12 10 20%

$260,000 to $269,999 15 8 88%

$270,000 to $279,999 10 7 43%

$280,000 to $289,999 8 6 33%

$290,000 to $299,999 1 2 -50%

$300,000 to $309,999 4 2 100%

$310,000 to $319,999 3 2 50%

$320,000 to $329,999 5 1 400%



35

Remuneration band34

Number of staff 2009

Number of staff 2008 Difference

$330,000 to $339,999 2 1 100%

$340,000 to $349,999 2 1 100%

$350,000 to $359,999 - - -

$360,000 to $369,999 1 - -

$370,000 to $379,999 - - -

$380,000 to $389,999 1 - -

$390,000 to $399,999 - 1 -100%

$400,000 to $409,999 - - -

$410,000 to $419,999 - - -

$420,000 to $429,999 1 - -

$430,000 to $439,999 1 - -

Total 4,240 3,511 21%



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