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Home / Business

The highest paid public sector boss

Claire Trevett
By Claire Trevett
Political Editor, NZ Herald·NZ Herald·
26 Nov, 2015 03:29 AM4 mins to read

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Adrian Orr, Chief Executive of the New Zealand Superannuation Fund. Photo / Steven McNicholl

Adrian Orr, Chief Executive of the New Zealand Superannuation Fund. Photo / Steven McNicholl

Adrian Orr, the man responsible for the NZ Super Fund, is the highest paid public sector boss earning more than $830,000 over the last year.

Ten other public sector bosses also earned more than $600,000 according to the latest State Services Commission release of chief executives' pay.

The figures show total remuneration, including bonuses and superannuation contributions.

Mr Orr is the chief executive of the NZ Guardians of Superannuation Fund which is responsible for investing the money in the $29.5 billion. The latest State Services Commission annual release of the public service chief executives' remuneration shows Mr Orr's went up by at least $30,000 over the previous year.

Auckland DHB head Ailsa Claire also had a significant rise - her remuneration went up by at least $60,000 to $640,000. DHB bosses' remuneration is set by the DHB with the approval of the State Services Commissioner.

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Others who earned more than $600,000 over the past year include chief of Defence Force Tim Keating, Police Commissioner Mike Bush, outgoing Solicitor-General Mike Heron and State Services Commissioner Iain Rennie. Their remuneration is set by the independent Remuneration Authority.

Among the core Government department chief executives, whose salaries are set by the State Services Commission, Education Ministry chief executive Peter Hughes was highest paid, overtaking Treasury chief executive Gabriel Makhlouf and getting at least $30,000 more than the year before.

Mr Hughes was paid a total of $620,000 - $629,999 - well above the $550,000 - $559,999 he took in 2013/14.

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In second place was Mr Makhlouf who got $610,000 to $619,999 while Ministry of Business, Innovation and Employment head David Smol took in $580,000 - $589,000.

However, Mr Hughes may not hold the lead for long - Mr Makhlouf and Mr Smol were among a handful of chief executives affected by a change in the timing in performance reviews, which is when bonuses are decided.

All chief executives now have their reviews on June 30 rather than their appointment dates.

That change meant only six months worth of performance pay was included in this year's pay figures.

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The figures also show former CERA head Roger Sutton was paid a total of $390,000 - $399,999 from July 2014 to the end of January, when he left the role. He had announced he was resigning in November last year in the wake of complaints of inappropriate behaviour from a senior staff member, but stayed on until the end of his contract.

His payment included $45,000 on his last day which a spokesman for the State Services Commission said was for contractual entitlements, such as owing annual leave. Mr Sutton's payments overlapped by two months with his replacement, John Ombler, who was paid a total of $310,000 - $319,999 from 1 December to 30 June.

At the time of his resignation, State Services boss Iain Rennie said "an acceptable outcome" was reached to acknowledge Mr Sutton's early resignation, which were "consistent with his entitlements under his contract." Mr Sutton got $590,000 - $599,000 in 2013/14.

The figures also show former Foreign Affairs chief executive John Allen left his role in at the end of his contract in January 2015 with a pay out for his entitlements of $85,649. He is now the chief executive of the Racing Board.

His replacement Brook Barrington received $130,000 - $139,999 for his first three months in the job, indicating an annual remuneration of up to $560,000 - about $100,000 less than Mr Allen was paid the year before.

THE PLUS $600K CLUB

• Guardians of New Zealand Superannuation CEO Adrian Orr: $830,000 - $839,999
• Accident Compensation Corporation CEO Scott Pickering: $760,000 - $769,999
• Commissioner of Police Mike Bush: $680,000 - $689,999
• University of Auckland Vice-Chancellor Professor Stuart McCutcheon: $680,000 - $689,999
• NZ Transport Agency CEO Geoff Dangerfield: $660,000 - $669,999
• State Services Commissioner Iain Rennie: $650,000 - $659,999
• Auckland District Health Board Ailsa Claire: $640,000 - $649,000
• Chief of Defence Force Tim Keating: $630,000 - $639,999
• Ministry of Education CEO Peter Hughes - $620,000 - 629,999
• Treasury CEO Gabriel Makhlouf: $610,000 - $619,999
• Solicitor General Michael Heron: $600,000 - $609,999

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