Some CEs tighten belt – others add a notch

Posted By TEU on Sep 22, 2011 |

The State Services Commission (SSC) report last week on the remuneration of public service and state sector senior staff was notable for the number of chief executives of polytechnics whose total remuneration was less than the previous year.

The chief executive at Otago Polytechnic, Phil Ker, saw his total remuneration drop from more than $330,000 to less than $300,000. He was one of three polytechnic bosses, one vice-chancellor and one wānanga boss who took pay cuts last year.

By comparison, eight tertiary institution chief executives or vice-chancellors recorded remuneration increases that shifted them into a higher pay band than they were on last year – four of them were vice-chancellors. There were increases in remuneration of over $20,000 for the vice-chancellor of Massey, over $30,000 for the vice-chancellor of Victoria University and over $40,000 for the vice-chancellor of the University of Auckland.

The report notes a further 4,800 public tertiary education employees earned more than $100,000 in 2010. Those 4,800 made up 13 percent of the tertiary education sector workforce. The number of employees receiving $100,000 or more had increased 13 percent this year, compared with 21 percent last year.

SSC says various factors influence the growth in the number of employees earning more than $100,000, including increases in collective agreement rates for senior university staff and progression between salary steps. The remuneration listed takes into account payment of any entitlements on the last day of duty, which could include performance pay, superannuation or redundancy payments.

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