Marryatt's pay exceeded the norm

SAM SACHDEVA
Last updated 05:00 31/01/2012

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A controversial pay rise for Christchurch City Council chief executive Tony Marryatt put his salary more than $100,000 above the median pay for similar roles, a report shows.

The report, from remuneration consultant Strategic Pay, was used to help set Marryatt's $68,000 pay rise, taking his salary to $538,529.

Marryatt said on Friday, after weeks of public criticism, that he had asked the council to stop paying the increase.

The council released the document in response to several Official Information Act requests from media organisations, including The Press.

The report included figures for median salaries in the national public sector, for similar roles around the country and for the general market – a mix of public and private sector salaries.

The median salary for the public sector was $409,363, while the figure for chief executives at similar organisations was $425,575.

In the report, Strategic Pay executive director Noel Davie said the company would normally use public sector or local government figures to determine an appropriate salary for a council chief executive such as Marryatt.

However, as the council's current pay policy was to align executive salaries with the general market, the company had used the general market median of $494,517 as the starting point for a pay rise recognising "fully competent performance".

The decision to boost Marryatt's salary to $538,529 represented an 8.9 per cent increase on the median salary – near the top of the recommended range.

Cr Helen Broughton said she was concerned about the use of private sector figures to set Marryatt's salary, and she had "battled" for years to use public sector salaries.

Local and central government salaries were "the most appropriate comparison" when determining Marryatt's salary, she said.

Mayor Bob Parker said the council had used general market figures to set staff salaries for "many, many years".

Marryatt was in a "unique position" as he had to deal with the pressures of managing the second-largest council in New Zealand, he said.

"We're the biggest city in the South Island ... If you look at the overall value of assets and investments and the scale of the budgets, it's a very large job."

Marryatt's increased salary was "not out of step" with similar roles in Christchurch and was still a "significant discount" compared with salaries in the private sector, he said.

"When you look at his experience and skill set and the [performance] rating he received, he's in the right place."

Councillors had "progressively" tested the size of the increase until they found a figure that most were happy with, Parker said.

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- © Fairfax NZ News

9 comments
Analyst   #9   09:18 am Jan 31 2012

The Mayor states: "When you look at his experience and skill set and the [performance] rating he received, he's in the right place." There are serious questions over Mr Marryot's skill set. The experience of the Christchurch community pre and post quakes has shown that his ability to engage and communicate with the community sector is abysmal. There are also serious questions about the performance rating. This is a combination of his own ratings, ratings by the senior management team and ratings by the Councillors. Aspects of performance that appall the public such as questions over dodgy delegations, the Henderson debacle, rent increase debacle, insurance debacle were clearly not considered important to the senior management team who gave him glowing ratings on most categories. Christchurch needs to be asking why the senior management team ignored Mr Marryots failings when scoring his performance. This seems very unprofessional if not downright dodgy to me.

L   #8   09:08 am Jan 31 2012

... And this is coming after they've told us that the pay rise was "on par" with other CEO's across New Zealand and that Marryat was "underpaid" for his job - yet, now, we get told he was being paid MORE for most likely doing less.

If I had ANY trust left in our council, it's now gone.

rjt   #7   09:04 am Jan 31 2012

Bob, just repeating yourself a lot won't make it any more true. In fact many of your statements appear to be becoming less and less true the more information the Christchurch Press gets hold of.

Keith   #6   08:57 am Jan 31 2012

I had to laugh at Bobs comment that Tony had a very big job !!

He is getting paid more than the Prime Minister of Australia Bob, how do you explain that??

Rob   #5   08:49 am Jan 31 2012

Why is it I am no longer suprised?

Crane   #4   08:35 am Jan 31 2012

Councillors had "progressively" tested the size of the increase until they found a figure that most were happy with, Parker said.

If this were so you would have gone with the first vote of 10 for and 2 against for the amount of $509k - but you kept pushing the figure up. All subsequent votes after this one ended up being 7/5 in favor. so once again Parker is spinning the truth somewhat.

John   #3   08:34 am Jan 31 2012

Good on ya Bob. Keep defending him and justifying his unwarranted salary!! And come election day, we the public will remember that you did and vote you out of office!!

ARs   #2   08:34 am Jan 31 2012

Yes Bob, we've all looked at his performance ratings now, just that some of us can read numbers!

Realist   #1   08:31 am Jan 31 2012

Even through the employment agreement states "Local Government" levels will be used, the CCC use a mix of private/public, weighted more towards private?

The key issue that Bob and obviously others miss, is that in the private sector, CEO's and senior managers have all the stresses and associated pressures of generating revenue and profits. One of the largest drawcards for Private CEO's etc to the Local Government sector is that these pressures are gone, there is not the great emphasis on revenue generation and profits as there is in the private sector.

What would be good to find out is when the process for setting changed and who drove it.

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