Gunnedah Shire Council general manager Eric Groth will receive a four per cent “performance-based” increase to his remuneration.
The decision was made during a closed part of January’s extraordinary meeting of council last week.
“The outcome of the review committee’s appraisal of the general manager’s annual performance review as ‘exceeding expectations’ recommended by the Performance Review Committee,” the minutes of the January meeting stated.
“Accordingly, the review committee’s recommendation for a four per cent performance-based increase to the general manager’s remuneration backdated to the anniversary date of the commencement of the general manager’s current contract of employment.”
According to Gunnedah Shire Council’s 2023/24 Annual Report, the general manager’s salary was $302,748 (including super and benefits).
Publicly available figures show Mr Groth was paid about the average in the state for rural and regional councils of similar size. General managers at neighbouring regional councils such as Narrabri received $337,189 and Liverpool Plains received $316,808, including super and benefits. The Office of Local Government’s (OLG) guidelines for the appointment and oversight of general managers states the performance of general managers must be reviewed at least annually.
The task of undertaking the general manager’s performance review is undertaken by a performance review panel.
The guidelines state performance review panels should comprise of the mayor, the deputy mayor, another councillor nominated by council and a councillor nominated by the general manager.
Under the approved standard contract, general managers are entitled to an annual increase in their salary package on each anniversary of the contract, equivalent to the latest percentage increase in remuneration for NSW public sector senior executive office holders as determined by the Statutory and Other Offices Remuneration Tribunal.
The guidelines also state councils may also approve discretionary increases to the general manager’s total remuneration package under the approved standard contract as a reward for good performance. Any discretionary increases should be modest and in line with community expectations and only apply for one year unless the council determines that it is to apply for the balance of the contract. All discretionary increases in remuneration, together with the reasons for the increase, must be reported to an open meeting of the council.”
The Gunnedah Times asked council several questions including whether the discussion on Mr Groth’s pay increase required an open meeting of council but was instead referred to the OLG guidelines which state “the performance agreement, action plan and any associated records that contain specific information about the work performance or conduct of the general manager are to remain confidential unless otherwise agreed to by the general manager or are required to be disclosed by law”.
A council spokesperson did note that the general manager’s role with Gunnedah Shire Council came with “significant responsibility”, encompassing a “staff of about 240 workers covering a huge range of areas, and providing services to the shire’s businesses and population of 13,280”.
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