Dunedin chief executive's unwanted pay rise 'awkward' to explain

Wednesday, 11 September 2019

An email from a council chief executive who asked not to be awarded a $57,000 pay rise says she 'genuinely' thought it would make her job 'harder'.

The Dunedin City Council made headlines last month when it was revealed councillors voted to increase the annual salary of Dr Sue Bidrose from $387,000 to $444,000 – a 14.7 per cent jump.

Mayor Dave Cull said the increase recognised Bidrose's outstanding performance and he reiterated she did not want the increase.

Emails obtained by Stuff under the Local Government and Official Information and Meetings Act confirm Bidrose was uncomfortable with the pay rise.

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In a March email to council chairs she wrote: 'I would like to formally ask you please NOT to pay me about 100% of grade – $431,025 is the 100% midpoint.

'It is an awkward thing to have to explain a large salary increase to my staff at the best of times.'

Bidrose told Stuff that staff had previously responded 'very positively' to her pay rises being pegged at 2 per cent and other chief executives from councils around the country wanted to do something similar.

Bidrose noted the sector paid less than the private sector, which regularly approached her with job offers.

The Dunedin council had an asset base of $4 billion and spent $353 million, which was more than most New Zealand companies.

'I'm not responsible for making a profit at council, but the level of scrutiny of our spend, every mistake we make, the culture that we have is something the private sector don't have to consider.'

She confirmed she had increased her charitable donations and her mortgage repayments alongside her pay rise.

The increase comes after the mayor's office provided a recommendation regarding chief executive remuneration.

While financial details, including comparisons with other chief executives were redacted from the emails released to Stuff, one email showed Bidrose earned 85 per cent of what her predecessor did when she was first appointed in November 2013.

Bidrose acknowledged she was delighted the council wanted to recognise her performance, and said the salary would be 'appropriately sized for the next time the role is advertised'.

However, she argued other support – such as being able to sit on other boards, which aided her Dunedin role – was as beneficial.

'So please, I ask you that you not give me a reward that I genuinely think will make my job harder, in return for a job well done,' she wrote.

Only councillor Lee Vandervis, who is running for mayor, asked for his vote – against the increase – to be recorded.

Cull, in an August email to council staff, wrote: 'There is likely to be a front page news story in the next day or two about the chief executive's salary.'

He confirmed Bidrose's salary had increased from $387,000 to $444,000 and that she had previously turned down several pay rises, or requested it was pegged to that of council staff – about 2 per cent a year.

It effectively meant she was being paid only 87 per cent of what the role had independently been assessed as being worth, Cull said.

He also noted the increase recognised her performance and demonstrated council's commitment to the gender pay gap.

'In my view, it is simply not right that a female chief executive be paid less than male chief executives working in comparable, or smaller cities.'

By law the Dunedin City Council would have to advertise the chief executive role in 2020 and it was important council 'sends the right signals', he said.

The salary increase, which includes KiwiSaver contributions, was effective from November 23, 2018 – the commencement of Bidrose's two-year contract.