Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Performance pay for chief executives ended

Performance pay for chief executives ended

Performance pay for public service chief executives has been ended, State Services Minister Chris Hipkins announced today.

Until now public service chief executive remuneration packages have included the potential to receive a discretionary payment of up to 15% for exceptional performance, Chris Hipkins said.

“The decision to remove performance pay, in addition to dialling back pay settings, including the appointment and re-appointment of chief executives at lower points in the remuneration range, will put the brakes on the growth rate of chief executive pay.

“These moves will reduce the total potential forecast expenditure on chief executive remuneration by up to $4 million by 2021/2022.

“We want a Public Service with an international reputation for excellence that is motivated by a spirit of service to the community.”

Chris Hipkins acknowledged the State Service Commissioner and the chief executives for entering into this agreement, and commended the Commissioner for his leadership. The Government is committed to addressing pay levels across the public service, Chris Hipkins said.

“Part of this is paying women equally and addressing pay levels for public servants at the bottom and top end. We have a plan to close the gender pay gap, we have introduced a living wage for all low-paid public servants and now we’re removing performance pay for chief executives.”

The Commissioner’s actions have resulted in a flattening of the rate of growth of pay levels at the top end, although the full effect is yet to be realised,” Chris Hipkins said.

“International research shows that individualised performance pay is not an effective incentive for higher performance for complex roles such as these.

“The Government also believes that performance pay is counter-productive to achieving the collaborative team-based approach and collective leadership that is critical to achieving better outcomes for New Zealanders.”

All chief executives of core public service agencies, whose remuneration is set by the Commissioner, agree with and understand the rationale behind the new approach. They have all signed new individual employment agreements.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>

 

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels