SCRAP Executive Bonuses - Barnett
PREMIER Colin Barnett has criticised local governments for offering a bonus scheme to senior staff, saying chief executives are paid well enough.
Mr Barnett’s comments came as four of Perth’s local governments confirmed they offer bonuses to chief executives. One of these was the City of Stirling, which paid its chief executive $18,066 in the last financial year.
The Premier said although bonus payments were common in the private sector, he did not see the reason for offering them in the public service.
“While bonus payments are a common feature of executive remuneration in the private sector, they have very little relevance to, or application in, the public sector,” he said.
“Generally, I don’t think bonuses are appropriate in areas of public service, including local government.”
City of Stirling acting chief executive Ed Herne said the City used the bonus scheme to attract and retain quality employees.
“The skills and responsibilities required for executive and top management positions are considerable, and the number of people who can fill these roles is limited,” Mr Herne said.
Claremont chief executive Steven Goode said the scheme was based on performance and recognised achievement of a set of requirements.
Town of Mosman Park Mayor Ron Norris said there was no justification for paying chief executives a bonus.
“As far as I’m concerned, our chief executive and all chief executives are more than adequately paid, including all the add-on benefits they receive and there is absolutely no justification for paying them a bonus as well,” Cr Norris said.
“Unfortunately there are some councils which think that paying a bonus improves performance. I just don’t share that optimism.”
The towns of Claremont and Victoria Park and City of Wanneroo also offer bonuses.