Good to see brakes being applied to chief executive pay

The Public Service Association (PSA) is welcoming signs in today’s Senior Pay Report 2018 that the trajectory of chief executive pay rises is levelling out.

“Last year we commended State Services Commissioner Peter Hughes for signalling that chief executive salaries were unsustainably high, so the slow-down in pay rises this year – which will continue with the removal of performance pay – is positive to see,” said PSA national secretaries Glenn Barclay and Kerry Davies. 

“At the same time we need to remember that the average base salary of public service chief executives is 5.3 times the average pay of their employees and we would like to see that ratio decline further in future years.

“In the context of lifelong earnings and the motivations expected of public servants, these chief executive roles remain well paid. Given how high their base salaries are, an average increase of 0.9% in the public service and 2.6% for Crown entity chief executives are still not insignificant.

“Looking to the future the PSA fully supports the Government direction that State Services Minister Chris Hipkins reaffirmed today to continue to curb increases in the highest salaries and to raise pay levels for those on low and middle incomes,” said Kerry Davies and Glenn Barclay.  

“The PSA endorses the need for remuneration to be accountable, transparent, fair and reasonable. The move to improve transparency this year by reporting the names of chief executives and acting chief executives against remuneration is welcomed”.