Public sector executives in Western Australia continue to earn substantially less than industry leaders in the private sector but, despite that, government workers seem to attract just as much controversy.
Public sector executives in Western Australia continue to earn substantially less than industry leaders in the private sector but, despite that, government workers seem to attract just as much controversy.
Health department boss Neale Fong and Western Power chief executive Doug Aberle have both been in the firing line over their remuneration.
Dr Fong, who was headhunted by Health Minister Jim McGinty to lead the state’s health reform program and subsequently took over as health department director general, was paid $640,000 last year.
That made him Australia’s highest paid public servant.
The political sensitivity surrounding health services, and Dr Fong’s continued role as chairman of the WA Football Commission, ensure he will remain in the public eye.
Mr Aberle’s remuneration package became unexpectedly contentious last month when Energy Minister Francis Logan refused to approve a bonus that had already been authorised by Western Power’s board, which is led by prominent company director Peter Mansell.
Mr Aberle’s base income is $380,000. This was set when the old Western Power was broken into four state-owned utilities – retail arm Synergy, electricity generator Verve Energy, regional power business Horizon Power, and the new Western Power as the transmission arm.
Western Power’s 2006-07 annual report disclosed that Mr Aberle earned a short-term incentive of $110,681.
The report did not specify the performance criteria but they included a range of financial and operational matters, including safety performance, which is similar to most private sector chief executives.
Mr Logan did not approve the bonus, but following negotiations with Mr Mansell, agreed to a reduced figure of $99,854.
Synergy chief executive Jim Mitchell, whose bonus also had to be approved by the minister, had no such problems. He was paid a base salary of $350,000 and was awarded an annual bonus of $116,000 for his performance during the year.
Synergy’s annual report disclosed that Mr Mitchell’s annual bonus can be up to 27 per cent of his base salary.
Verve did not declare an annual bonus because it had two chief executives – John Lillywhite left mid year and was replaced by former Alcoa executive Shirley In’t Veld.
Long-serving Water Corporation chief executive Jim Gill enjoyed a 10.3 per cent increase in his total remuneration to $462,000.
LandCorp chief executive Ross Holt also enjoyed an increase in his total remuneration, following the passage of legislation which made the land development agency more like a trading enterprise. Mr Holt was paid a total of $394,155 last year.
Fremantle Ports chief executive Kerry Sanderson was paid a total of $382,196, a modest 3.7 per cent increase from the previous year. Her total included a bonus of $58,565.
Apart from Dr Fong, the most highly-paid public servant in a traditional policy advisory role is the Department of Industry and Resources director general, Jim Limerick, who earns up to $430,000.
