Rousseau's given earnings figure $10,000 too high, he says

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Figures released in the State Services Commission annual report showing Southern District Health Board chief executive Brian Rousseau's remuneration reached $500,000 last financial year are about $10,000 too high, he says.

For the first time the commission's report, released this week, includes the remuneration paid to all district health board chief executives in the year to the end of June.

This suggests Auckland chief executive Garry Smith earns the most, on $540,000 to $549,999, followed by Mr Rousseau on a package in the $500,000 to $509,999 band.

However, Mr Rousseau said there had been a misinterpretation of the data submitted by the board. The data had included his non-taxable vehicle allowance. Removing that would reduce his total remuneration to the end of June to just under $490,000, he said.

While this was more than the $470,000 to $480,000 band listed in the Otago board annual report for the 2008-09 year, variations could occur because of timing of payments and leave calculations.

Mr Rousseau said, by email, it was easy to see how the error occurred, because the board had provided a payroll print-out which did not point out the specific nature of individual payments made.

"We understood them and we thought they would, but in hindsight we should have pointed it out."

Board chairman Errol Millar said he had also been surprised at the amount listed because Mr Rousseau had not received a pay rise since July 2008.

"By mutual agreement" his pay had not changed. This was because Mr Rousseau acknowledged the financial situation the board was in, Mr Millar said.

An unspecified part of Mr Rousseau's salary is "at risk", requiring him to meet certain targets set by the board.

Mr Millar said Mr Rousseau had not been paid the full amount for this in the last three years.

Mr Millar said he had queried the figures with the State Services Commission because while he supported the idea of the remuneration bands being released, it was important the information was accurate and fair comparisons could be made.

A commission spokesman said the information included had been taken from information provided by the boards in response to requests for specific information.

It was the boards' responsibility to ensure the information was correct.

He agreed a non-taxable allowance would not typically be included in the definition of total remuneration.

He said he was not aware of concerns similar to the Southern board's, but some amounts listed by the commission differed from what boards had been putting in their annual reports because they might not have included such things as superannuation.

In future, board annual reports and the commission's information would contain the same information.

Canterbury District Health Board chief executive David Meates' remuneration for last year was between $440,000 and $449,999, but this amount is likely to be considerably higher this financial year because since late April he has been also filling the top management role on the West Coast board.

The West Coast package for last year was the lowest of the amounts paid, at $250,000 to $259,999.

The commission has included the chief executives' remuneration "to provide consistency and transparency across the sector, and to improve accountability for this aspect of public expenditure", the report says.

Health Minister Tony Ryall, who is also the Minister for State Services, said boards had to consult with the state services commissioner on chief executives' pay.

"Finances are tight and I expect boards and management to reflect that in senior pay," he said in an email response to questions.

The Government was encouraging greater collaboration between boards.

Mr Ryall was "sure we will see more shared governance and management roles in the next several months".


What they earn
South Island District Health Board chief executives' total remuneration for year ended June 30, 2010. -

• $250,000 to $259,999 - West Coast
• $300,000 to $309,999 - South Canterbury
• $370,000 to $379,999 - Nelson Marlborough
• $440,000 to $449,999 - Canterbury
• $500,000 to $509,999 - Southern *

- As stated in the State Services Commission annual report.

*disputed


- elspeth.mclean@odt.co.nz

 

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