TVNZ’S MILLION DOLLAR MAN
Kevin Kenrick’s pay packet was boosted by $72,000 last year,
TVNZ chief executive Kevin Kenrick has had his pay bumped up to $1.43 million, thanks to big bonuses and higher holiday pay.
His increasing pay package has come under scrutiny, with the journalists’ union saying he is overpaid compared with other state-hired bosses in similar positions. The union also criticised the growing gap between TVNZ’s chief and his staff, especially after cuts to its newsroom in 2017.
His latest bonus was confirmed in Parliament about the time the Government promised to crack down on the bonuses public servants were receiving.
Although Kenrick’s base salary of $840,857 has not changed, his performance bonuses have been growing. In the 2018 financial year, he was awarded a $588,050 bonus. He also got $18,567 more in holiday pay.
Broadcasting Minister Kris Faafoi backed the ‘‘processes in place’’ to set the TVNZ chief executive’s remuneration. But he urged TVNZ to be wary of how much it was paying its top man.
‘‘While the salary is a board decision, my hope would be that it remains mindful of the need to deliver value to its shareholders,’’ he said. Its ‘‘shareholders’’ are taxpayers.
The Government has been cracking down on bonuses for its other chief executives.
State Services Minister Chris Hipkins put an end to performance pay last year, saying it would save taxpayers about $4m. Until then, government CEOs could receive a discretionary payment of up to 15 per cent for ‘‘exceptional performance’’.
Faafoi said the performance bonus ban did not impact Kenrick because TVNZ was a Crown entity and therefore it was out of reach of the State Services Commission.
TVNZ board chairwoman Dame Therese Walsh said Kenrick’s pay had been ‘‘considered carefully’’.
‘‘It’s based on independent market advice and the board’s rigorous assessment of his performance against specific objectives,’’ she said.
Sunday Star-Times asked what specific targets Kenrick had met to receive his $588,050 bonus. They did not respond.
Kenrick’s pay increases have been hitting the headlines for years. In 2017, the board faced criticism for boosting his pay to more than $1.35m despite the company taking a huge profit hit that year.
The state-owned company’s fortunes grew in 2018, with profit rising $3.7m. Kenrick’s pay packet grew, too, rising $72,000, $20,000 more than the average wage in 2018, according to figures from Statistics NZ.
Kenrick’s pay has seen steady increases over the past three years. Since 2016, his pay package has grown by $214,012.
E Tu¯ Union media organiser Paul Tolich said that level of growth was unfair and inequitable given most TVNZ staff earned under $100,000.
He also criticised the TVNZ board for paying its CEO more than many other government departments and state-owned enterprises.
The highest paid state-owned enterprise chief executive, apart from Kenrick, was Transpower boss Alex Ball. He took home $1.24m last year.
Unlike Radio NZ, the stateowned television channel operates with a commercial motive above public service. It returns profits to the government, rather than consuming taxpayer money.
Tolich said the broadcaster’s move to award its boss large bonuses, while decreasing the size of its news team, was a sign the station focused too heavily on commercial objectives.
‘‘They must pursue those public service goals with as much vigour as they approach their other activities,’’ he said.
The restructure affected more than 30 people, but news boss John Gillespie said fewer than 10 ‘‘net’’ jobs were cut.
Of 642 staff, 70 per cent of TVNZ made less than $100,000. The company said 14 per cent earned less than $50,000.
‘‘While the salary is a board decision, my hope would be that it remains mindful of the need to deliver value to its shareholders.’’ Broadcasting Minister Kris Faafoi