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TasWater executive salary report distorted

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Executive salaries at TasWater, the local government-owned statewide water and sewerage corporation, increased by an average of 4.5 percent, in line with sector movements in the past financial year.
Chairman Miles Hampton said the reported 16 percent annual increase in executive salaries was a distortion as this included termination and movements in leave balances as well as replacing a position that had been vacant the previous financial year.
Mr Hampton said one senior executive role had remained vacant for a year and this had been replaced by a new role in 2016-17. We are also planning to remove another executive position this year. The reported salaries’ total included the new role as well as termination payments and movements in leave balance.
When these factors were taken into account the real average increase in TasWater’s executive remuneration was 4.5 percent. While this was marginally higher than general salary rises, some longer-term managers had received increases to bring them in line with market rates.
Mr Hampton said TasWater operated in a competitive national market and it was necessary to offer appropriate salaries to attract and retain the best people.
“Salaries are benchmarked against comparable national and local pay levels and are consistent with that of other State Government Business Enterprises (GBEs). However, unlike other GBEs, TasWater does not pay executive bonuses.
“As well, the inference that TasWater executives set their own salary levels is incorrect. The Chief Executive’s salary is set by the Board and the Board approves increases for all executives, based on recommendations from the CEO.”
TasWater

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