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Home / Bay of Plenty Times

Big earners in the Bay

Catherine Gaffaney and Juliet Rowan
Bay of Plenty Times·
6 Dec, 2014 05:00 PM6 mins to read

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The Bay of Plenty is home to at least one chief executive on a salary of more than $1 million, a Bay of Plenty Times Weekend survey of chief executive and civil leaders' salaries shows.

Trustpower chief executive Vince Hawksworth's $1,009,999 salary for the 2013 financial year put him at the top of the survey's salary table. This was an increase of $180,000 from the previous financial year and $430,000 from 2011.

Port of Tauranga chief executive Mark Cairns came in second, earning $968,000 in the 2013 financial year - up $12,000 from the previous year, but down $132,000 from his 2011 salary of $1,100,000.

Third was Bay of Plenty District Health Board chief executive Phil Cammish. He was on a salary between $430,000 and $440,000 in the last financial year.

Another high earner was Bay of Plenty Polytechnic chief executive Dr Alan Hampton, who received a total remuneration between $270,000 to $279,999 for the 2013 financial year.

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The top council earner in the Bay of Plenty Times Weekend survey was Tauranga City Council chief executive Garry Poole, who earned $343,344 in the most recent financial year.

New Western Bay of Plenty District Council chief executive Miriam Taris is also on a pay of $300,000 for the 2014-15 financial year.

Tauranga Mayor Stuart Crosby's salary tops Western Bay of Plenty Mayor Ross Paterson's salary for 2014-15 at $143,500, compared with Mr Paterson's $105,084.

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Trustpower chief executive Vince Hawksworth said his salary was determined by the company's board based on market dynamics.

"I am privileged to have the opportunity to lead one of the region's leading companies that is a national and international success," he said.

"I acknowledge this is a significant salary and, like all chief executives, my time in the role will be determined by the ability to create value for shareholders and serve customers and staff."

Port of Tauranga chief executive Mark Cairns, who came in second with $968,000, was in Europe and unavailable for comment, while third place-getter district health board chief executive Phil Cammish did not respond to requests for comment before deadline.

Alan Hampton, chief executive of Bay of Plenty Polytechnic, said his $270,000 to $279,999 salary, like that of all chief executives in the tertiary education sector, was fixed by a framework established by the State Services Commission.

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"It reflects the size of the university, polytechnic or wananga," he said, adding that the council of each institution had to obtain the commission's agreement when setting a chief executive's salary.

When it came to high earners in local government, the top earner, Tauranga City Council chief executive Garry Poole, said of his $343,344 salary: "Council seeks independent advice on remuneration levels for positions to ensure that roles are sized correctly."

Tauranga Mayor Stuart Crosby said mayors' salaries were different from private-sector chief executives because they were determined by a remuneration authority.

The salary level reflected the size of the organisation and the population of the area, and then a discount of about 20 per cent was applied for what the authority termed "public good".

Mr Crosby believed his $143,500 salary was in tune with the demands of his job.

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"Ultimately, we govern $3.5 billion worth of assets. We're responsible for a $240 million budget and it's full-time for me."

He said he had chosen not to take a mayoral car even though he was entitled, viewing that as his personal contribution to "public good". If a mayor failed to get re-elected or retired, there was no redundancy or severance package, he said.

"You've got to take that into account. I've always looked at my job as a fixed-term three-year contract."

Western Bay of Plenty District Mayor Ross Paterson responded on behalf of himself and the regional council's chief executive Miriam Taris saying, like most local authorities, his council used independent remuneration specialists for advice.

Tauranga Chamber of Commerce said the high salaries commanded by local chief executives reflected the calibre of the region's business environment.

"We are operating in an international environment and, to attract the top CEOs and managers to the Western Bay and Tauranga, market rates prevail," said chamber chief executive Dave Burnett.

He said the region had some very experienced business leaders, who were needed to make their organisations succeed and grow.

"With growth comes employment and general economic growth for the city and region."

Economic development organisation Priority One said Tauranga competed in a global market for talent, skills and experience, and had to meet market remuneration levels to attract the right people.

"Sometimes though, this might be tempered by lifestyle," chief executive Andrew Coker said. "For Tauranga, we are fortunate to be able to grow and attract really competent CEOs for businesses that underpin our economy."

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John McGill, chief executive of remuneration consultants Strategic Pay, said several factors influenced what some might see as unrealistic pay packages.

"When companies are interviewing people for a chief executive they are generally in an international environment, so they literally have to look around the world for people.

"The dilemma [employers] face is they have to meet that market if they want to attract the right people, and so also meet the structure of pay which is common for those jobs. That's where you get into short and long-term benefits that mean the big packages."

Electricity Networks Association chief executive Alan Jenkins said such high salaries were hard for many people to grasp in New Zealand.

"New Zealand has traditionally been a low salary country. We are quite an unusual country in that sense. But when you compare them to overseas companies [they are not as excessive].

"But on the other hand, there's quite an element of risk in these jobs and they can be fairly ruthless in turning you out if you don't perform," Mr Jenkins said.

"I think it's well worth paying the right people the right amount of money."

Public Service Association national secretary Richard Wagstaff said frontline staff providing public services for the council and in the health sector were finding times tough in comparison.

"Hospital workers in the Bay of Plenty were offered just a 0.7 per cent pay rise this year, which means their pay was cut in real terms, while their chief executive earns huge sums.

"Many DHB staff earn less than the living wage, while their chief executive is on more than 10 times their salary.

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"Hard-working council and hospital staff are relied on to keep the community healthy, safe and educated, but they do not see that recognised in their pay," he said.

"It can be hard being told there's no money for fair wages when you see your organisation's leader earning money you can't even imagine."

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