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CEO Remuneration Recommendations
CEO Remuneration Recommendations
Local Government
CEO Remuneration Recommendations – Salaries and Allowances Tribunal

Background
The Local Government Act 1995, section 5.39(7), was amended in 2005 to provide for local governments to take into account the recommendations contained in a report of the Salaries and Allowances Tribunal before entering into, or renewing, a contract of employment with a CEO.

The latest Tribunal report, Recommendation Report: Local Government CEOs – 2008 June 27th, was released on June 27, 2008. The Tribunal emphasises that these are recommendations as prescribed under the Local Government Act 1995, rather than a determination of what the remuneration of CEOs must be. The recommendations provide guidance to local governments when making decisions on CEO remuneration. It is useful for local government employers and employees to have this type of benchmark available. Click here to see the report.

2008 Report Recommendations
The Tribunal has recognised the variability of local governments and has classified local governments into nine wide bands. Eleven levels have been adopted for CEOs of regional local governments. The recommended Total Reward Package comprises the salary and the dollar amount of a number of items normally included in such a package. Items normally included, and those which may be excluded from a package, are listed in the report.

The Total Reward Package recommendation takes effect from July 1, 2008. Future reports will be made at intervals of not more than 12 months.

The bands and Total Reward Packages for CEOs of local governments are as follows:

Band Total Reward Package No. of Local Governments
Band 1 $103,048 - $139,386 30
Band 2 $114,980 - $156,199 42
Band 3 $126,912 - $171,927 20
Band 4 $136,674 - $185,486 3
Band 5 $149,691 - $202,300 10
Band 6 $165,962 - $224,536 12
Band 7 $184,402 - $249,485 10
Band 8 $201,215 - $271,721 11
Band 9 $218,570 - $296,127 2
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