Otago University Students' Association president Francisco Hernandez tabled a memorandum proposing performance bonuses for members of its executive last month, the student magazine Critic reported.
The new pay structure - if supported by students in a referendum being held between September 30 and October 20 - could mean pay increases of between 30% and 33% depending on the member's position.
It would also mean pay rates would be annually adjusted for inflation. However, whether executive members received pay rises depended on their performance, with base pay rates reduced.
Under the new rates, the OUSA president could receive up to $40,000 a year, a $10,000 increase on the present rate. Mr Hernandez said the proposal was not for a pay rise.
''It's a pay cut. The base pay is actually decreasing across the board for every executive position,'' he said.
Performance-based bonuses would recognise student politicians who put in the most effort.
''From my long service on the executive, I've recognised that there are people who give 200% who get paid the same as someone who gives just 100%.
''I think that people who work hard and go above and beyond the call of duty should be rewarded with a bonus.''
If the proposal was approved, the executive would vote whether other members deserved bonuses.
Asked whether this could lead to conflict among the executive, Mr Hernandez said: ''I believe that the executive will act professionally and with the public interest in mind.
"The glare of public scrutiny through critic and OUSA's other accountability measures will prevent abuse.''
OUSA has 11 executive members.
