PHOTO
A former Environment Southland chief executive who retired last year received a six-figure severance payout and a car.
Wilma Falconer held the top job at the regional council from June 2022 until her departure on 29 August 2025, meaning she worked just two months of the 2025/26 financial year.
She was paid $474,077 across that short period, the council's recently-released draft annual report has shown.
The figure comprised $346,037 of severance, $65,765 of salary, $54,741 of accrued leave, and $7,534 for a fringe benefit tax associated to use of her work vehicle.
Falconer was also allowed to keep the vehicle, which had a depreciated value of $8,990.
Local Democracy Reporting asked Environment Southland a series of questions, including what the severance payment related to.
In response, council chair Jeremy McPhail confirmed Falconer had retired in August 2025 and that a severance payment was made.
“I will not be making any further comment.”
The council also refused to reveal the year, make and model of the vehicle for privacy and protection reasons.
Speaking to the Otago Daily Times, a council source expressed dissatisfaction over the payout.
"It's disappointing that this level of ratepayer money is not going towards improvements in the region," the source said.
Falconer's regular salary was $353,262 at the end of the June 2025 financial year, including a fringe benefit tax of $492.
Her retirement was announced in a council press release on 30 April 2025, the same month the outcome of a council re-structure was shared with staff.
In that release, Falconer said it had been “a privilege and immensely rewarding” to lead the council.
“With a new executive and organisational structure in place and the local government election in October, it feels like a natural time for my transition,” Falconer said.
The release included a comment from then-chair Nicol Horrell wishing her "all the best for her future and a well-deserved retirement".
Falconer was replaced by interim chief executive Rob Phillips who previously held the chief executive role from 2012 to 2022. No severance payment was recorded in the annual report at the time of his departure.
Falconer could not be reached for comment.
According to an Audit Office guide on severance payments, such payments were those "made in addition to the employee's contractual entitlements as part of an agreement to end their employment".
Severance payments could be used for resolving an unsatisfactory employment situation, the guide said, or could be agreed for bringing employment to an end for other reasons.
Under the Local Government Act 2002, annual reports are required to include the amount of any severance payment made to a chief executive who vacated office.
The Government is currently undertaking a major shake-up of councils.
Regional councils have not been able to submit proposals under the Government's amalgamation reforms. The Government plans to scrap regional councils by the 2028 local elections.
LDR is local body journalism co-funded by RNZ and NZ On Air.
