Airport directors’ salary increase raises eyebrows

Palmerston North Airport has trebled its returns to ratepayers in three years, seen passenger numbers grow to a record 657,515 in 2017/18 and manages assets worth $78 million.

But city councillors, all earning above $45,000 a year, have quibbled about whether its five directors should have their combined pay increased from $90,000 to $124,000.

The airport company presented its annual report to the council’s finance and performance committee on Monday, receiving compliments, but a mixed response to the request for more pay.

Cr Karen Naylor led the opposition to increasing the directors’ remuneration pool by 37 per cent and suggested a 10 per cent increase to $99,000 was enough. ‘‘I’m proud of the airport and it is really important to have quality people, but I do not believe an increase of 10 per cent would mean we do not ensure that.

But mayor Grant Smith said the directors were worth the increase.

‘‘This is a big business. It is one of the city’s key economic enablers, with $78m in assets and huge growth in passenger numbers.

‘‘It’s the sixth biggest airport in the country and it needs smart people running it and governing it. ‘‘We must pay people what they are worth.’’

Cr Jim Jefferies said the airport’s success came down to the quality of the people running it

Board chairman Murray Georgel, currently getting $28,000 for the job, said the role of directors had become more complex.

The vote on Naylor’s recommendation to limit the increase directors’ fees to $99,000 was evenly split.

This means the proposed full increase to $124,000 will go to the full council for approval.

‘‘It’s the sixth biggest airport in the country and it needs smart people running it. ’’ Mayor Grant Smith