Growth trend in public sector salaries

Wednesday, 3 December, 2008 - 22:00

AFTER much controversy in recent years surrounding the remuneration package for the position of director general of Health in Western Australia, this vital public sector role once again topped the list of public sector executive pay packets in WA.

The new boss of WA's Health Department, Peter Flett, will earn $540,000 a year.

This is reportedly made up of a cash package of $460,000 plus a car allowance, with superannuation taking it up to the $540,000 mark.

While it's strongly believed that Dr Flett could be earning more if he remained in the private sector, he has said previously that his decision to take up the public position was not based on the monetary inducement.

Dr Flett signed a five-year deal with the state government in October taking over from the controversial tenure of Neale Fong.

According to data compiled for WA Business News' salary review from last year, Dr Fong was paid $640,000, putting him almost $150,000 clear of the next best paid public sector executive.

At that stage, Dr Fong was the nation's highest paid public servant.

While Dr Flett has been acting director general since February 2007 he doesn't have the same salary margin on his closest public sector rivals as Dr Fong has done previously.

Western Power managing director Doug Aberle retained his second place ranking with a salary package worth almost $505,000.

That was a modest increase of just more than 2 per cent on his salary figure from the previous year.

Only two public sector executives, Dr Flett and Mr Aberle, are set to receive more than half a million dollars for their efforts.

Synergy managing director Jim Mitchell continued as the third highest paid public sector executive.

Mr Mitchell is on a salary of $492,000, an increase of almost 6 per cent on last year's figure.

Even though the top three earning positions have remained constant, there have been some significant movers and shakers travelling up and down the public sector list this time around.

One of the more notable ladder climbers was superannuation fund manager GESB's chief executive, Michele Dolin who jumped up to seventh position.

A former BankWest chief financial officer, Ms Dolin has also been announced as an inaugural board member of GESB Mutual.

However, the planned mutualisation of the $9 billion fund is still up in the air after being delayed at the 11th hour by the Carpenter government.

Outgoing Fremantle Ports chief executive Kerry Sanderson received an increase in salary of more than 15 per cent.

On her way to London as the newly appointed agent general, Ms Sanderson received a salary of more than $441,000 last year, up from $382,196 the previous year.

Mal Wauchope, formerly director general of the Department of the Premier and Cabinet, climbed up the rankings as the newly appointed public sector commissioner.

Mr Wauchope stands to make almost $440,000 in his new role, an increase of almost $30,000 when compared to his director general salary.

Meanwhile, his replacement as director general, Peter Conran, came in just outside the top 10 earners with a salary of more than $391,000.

Head of WA Police, Commissioner Karl O'Callaghan broke into the top 10 with a salary of $420,000, up from $390,000.