11 Oct 2012

Housing CEO got $81,000 payout when job ended

4:00 pm on 11 October 2012

The former head of the Department of Building and Housing received about $81,000 in entitlements when her job was disestablished.

Earlier this year, the State Services Commission gave an official warning to Katrina Bach over her treatment of a staff member.

The State Services Commission on Thursday released its annual report of state sector remuneration.

It reveals that Ms Bach, who was on a salary of between $410,000 and $419,000, received the payout after the department was disestablished and its functions transferred to the Ministry of Business, Innovation and Employment.

The overall pay bill for public service chief executives increased by 2.7% in the most recent financial year.

In the year ending June, 21% of chief executives across the wider public sector received no increase in pay. Over the same period, the average base salary across all public service staff increased by 3%.

The highest paid chief executive was the head of Foreign Affairs and Trade, John Allen, whose salary band ranges from $620,000 to $629,000 - an increase of $40,000 from the previous year.

The next highest was the head of the Transport Agency, Geoff Dangerfield, with a salary of between $600,000 and $609,000.

State Services Commissioner Iain Rennie says chief executive pay should be flexible and transparent, with modest performance-related increases.

He says the Government expects any remuneration changes across the state sector will be met within existing funding levels, demonstrate value for money, and not lead the private sector.