17 October 2017
Remuneration for CEO of Guardians of New Zealand Superannuation
Statement from State Services Commissioner Peter Hughes
The Guardians of New Zealand Superannuation, a Crown Entity operating as part of the State Services, has today publicly
released information on its decision to increase the Chief Executive’s 2016/17 remuneration.
Crown Entity boards make decisions on the remuneration of their Chief Executives.
The State Services Commission provides annual guidance on remuneration for Crown Entity Chief Executives and boards are
required to consult me before making final decisions. This guidance is based on the Government’s pay expectations for
the State Services.
My expectation on pay for Public Service leaders is one of fairness. It’s a balance between being fair to individual
chief executives, recognising the jobs they do, and being fair to the taxpayers who pay the bill.
In this particular case, my advice to the board was that an increase of the size proposed was not justified. The board
made its own decision and did not follow my advice. I acknowledge that this year’s increase was closer to recommended
levels than the previous year’s increase in total potential remuneration of 35.6 per cent.
I expect public transparency around the remuneration for public sector chief executives and that includes Crown
Entities. Boards of Crown Entities are responsible for and accountable for their decisions. When board decisions on
chief executive remuneration are not consistent with my advice I will ensure that it is transparently recorded in the
annual disclosure of State sector chief executive remuneration. This will commence with this year’s State Sector Senior
Pay report.
Because the Guardians of New Zealand Superannuation has decided to make this matter public now, before the annual
disclosure of chief executive remuneration, I have today released correspondence that shows the Commission did not
support the board’s decision.
I do not accept the argument that Crown Entities such as Guardians of New Zealand Superannuation should be able to make
decisions free of any public sector oversight or accountability. This is a public agency investing public money for the
good of the public. And the Chief Executive’s remuneration is paid by taxpayers. Crown Entities have a strong element of
public service attached to their work and executives should reasonably expect to earn less than in a private sector
company.
Related documents:
Guardians of Superannuation Annual report: https://ar2017.nzsuperfund.co.nz/sites/default/files/downloads/NZSF%20Annual%20Report%202017.pdf
Documents released by Guardians of Superannuation: https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/2017%20proactive%20disclosure%20-%20remuneration.pdf
ENDS