Council chief executive’s $50k pay rise in the midst of budget cuts

Tuesday, 5 December 2023

The Taxpayers’ Union has criticised the $46,000 pay increase for chief executive Barbara McKerrow. (File photo)

Wellington City Council chief executive Barbara McKerrow has secured back-to-back pay rises, bringing her salary package to more than $500,000.

The hefty increase of $46,000 – understood to be matched by a similar pay rise for the current financial year – was published in the council’s annual report for the 2022 financial year.

The council is in a grim financial position as it heads into its Long-Term Plan, with councillors warning of “unprecedented” rates increases and cutting projects like playgrounds to public toilets.

The Taxpayers’ Union labelled McKerrow’s pay increase as an embarrassment.

Campaigns manager Connor Molloy described McKerrow as “one of the worst performing chief executives in the public sector” who had overseen “almost every budget blowout under the sun”.

She should have been sacked instead of given a pay rise, Molloy said.

In contrast, mayor Tory Whanau said the council was taking a prudent approach to all spending including salaries, but had to compete with employers in the private sector and central government to retain talented staff.

The recent update to McKerrow’s pay was supported by the Chief Executive Performance Subcommittee, Whanau confirmed.

McKerrow held “exceptional skill and talent as well as decades of experience”, but was paid less than her counterparts in Auckland and Christchurch (which have larger populations) and about the same as Tauranga’s chief executive.

Councillors also supported the increase. Rebecca Matthews said McKerrow was a “great leader, and the council and city are the better for it”.

Tim Brown said he thought McKerrow’s performance had been very high quality and was demonstrated through her award win at the Taituarā Local Government Excellence Awards.

The process for reviewing the chief executive’s pay was “very professional and well managed”, Brown said.

Although he was not a voting member of the Chief Executive Performance Committee, he had observed the most recent meeting to determine the chief executive’s pay in August.

Information about the chief executive’s pay is only released in the annual report, at the end of the year for which the pay is relevant – meaning the public knows the chief executive’s salary once the financial year is over.

The Post understands McKerrow’s pay increase for the current year was at a similar level to the one shown in the annual report.

At times of financial strife including during the height of the Covid-19 pandemic, council chief executives around the country took pay cuts or froze their usual pay increases.

McKerrow has turned down pay rises while facing budget cuts in the past, including in a previous role as the chief executive of New Plymouth District Council.