Performance pay for NZ State Services Chief Executives ended   22 Aug 2018

HON CHRIS HIPKINS

21 AUGUST 2018P

HON CHRIS HIPKINS

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.

Source:  NZ Government

Add a comment

Bookmark and Share

News

Finalists announced for the Air New Zealand UK New Zealander of the Year Award 2019

6 Dec 2018 Press Releases
Finalists for the prestigious UK New Zealander of the Year Award 2019, presented by the New Zealand Society of the United... more

New Zealand increases climate finance commitment to Pacific

25 Sep 2018 Environment By RT HON JACINDA ARDERN
25 SEPTEMBER 2018 New Zealand increases climate finance commitment to Pacific New Zealand will increase its global climate finance... more

Business

Multinationals to pay fair share of tax

26 Jun 2018 Business News
26 JUNE 2018 HON STUART NASH New measures to ensure multinational companies pay their fair share of tax will come into force next... more

NZ Government launches Sustainable Food & Fibre Futures

22 Aug 2018 Business News By Hon Damien O'Connor
21 AUGUST 2018 Growing New Zealand's food and fibre sectors sustainably and supporting a thriving economy are the hallmarks of a new... more

Living

New Zealand wine celebrates bicentenary with record sales

6 Dec 2018 Food & Wine
In 2019, New Zealand will be celebrating 200 years since the first vine was planted on its shores.  From 100 grapevines... more

REVIEW: Emma Timpany's "Travelling in the Dark"

1 Dec 2018 Review By Charlotte Everett
Emma Timpany’s Travelling in the Dark weaves a tale of homecoming that will resonate with many, and particularly with those who... more

Property

More certainty in construction sector smooths boom and bust cycle

22 Aug 2018 Property
30 JULY 2018More certainty in construction sector smooths boom and bust cycle HON JENNY SALESA The 2018 National Construction Pipeline... more

NZ Property: Foreign buyers ban passes third reading

15 Aug 2018 Property
15 AUGUST 2018 HON DAVID PARKER The Bill to put in place the Government's policy of banning overseas buyers of existing homes has... more

Migration

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Post-study work rights emphasise skills NZ needs

8 Aug 2018 Migration
8 AUGUST 2018 HON IAIN LEES-GALLOWAY Changes to post-study work rights will help ensure international students coming to New Zealand... more

Travel

Arrival card change to smooth border process for international travellers to NZ

26 Sep 2018 Travel & Tourism By Hon Kris Faafoi
25 SEPTEMBER 2018 International travellers arriving into New Zealand should have a simpler, faster entry as a result of changes to... more

NZ Government to fully fund Auckand's SkyPath as part of $390m investment in walking and cycling

25 Aug 2018 Travel & Tourism
23 AUGUST 2018 HON PHIL TWYFORD HON JAMES SHAW Transport Minister Phil Twyford and Acting Associate Transport Minister James Shaw have... more

Sport

America’s Cup court ruling vindicates process

26 Sep 2018 Sailing By Hon David Parker
25 SEPTEMBER 2018 The Environment Court has today granted the resource consent for the 36th America's Cup bases in Auckland and the... more

Humble Stephen Kearney praises Warriors staff ahead of finals appearance: 'It's not down to one person'

3 Sep 2018 Rugby League
Warriors coach Stephen Kearney paid tribute to the club's unsung heroes ahead of their first taste of NRL finals football since... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more