"Whanganui ratepayers can be satisfied that the council's top salary isn't overly extravagant – at least not compared to other councils," New Zealand Taxpayers' Union Louis Houlbrooke said.
"But considering the region's low house prices, the council needn't rush into approving its next round of pay hikes."
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Click here to read our feature interview with Kym Fell from January.
Whanganui mayor Hamish McDouall said the ranking seemed about right considering Whanganui was a medium-sized district with some major assets.
Fell's salary was justified given money which had been saved on things like salaries and the wastewater treatment plant in recent years, he said.
"He's worth his weight in gold. He's certainly worth the salary we pay him."
But the Taxpayers' Union argues council chief executives should be scrapped in favour of bringing back "more modestly remunerated" town clerks.
"Unlike businesses, councils have the power to dig endlessly deep into people's pockets. This power should come with a sense of public service."