A proposal by one council, to be considered by local government at the May MAV State Council meeting, suggests an independent panel to review municipal CEO salaries.

 

Scrutiny of council chief executive salaries is legitimate and the MAV welcomes discussion on this matter.

 

Councils disclose CEO salaries in their annual report and on a public register. These are benchmarked each year by Local Government Victoria.

 

Every council strives to appoint the most competent person to oversee the day-to-day operations and annual budget averaging $139 million and 800 staff in a metropolitan council, and $47 million and 300 staff in a rural municipality.

 

It’s a complex job requiring very high leadership, management and administration expertise. Councils must offer competitive salaries to attract the best quality applicants. When compared to private enterprise, councils offer modest pay for a tough job.

 

Unlike the Premier or Prime Minister, a CEO is not voted in by the community and it’s misleading to compare their pay.

 

The salary of senior politicians is usually part of a much larger remuneration package, with many other hidden and subsidized costs. These can include chauffeured cars, travel, offices, accommodation allowances and sizeable ongoing benefits extending long into retirement.

 

Securing a high performing and talented CEO is essential for providing communities with confidence that such vast municipal responsibilities and ratepayer money are being properly managed.

 

Rob Spence