Remuneration Authority – Chair

The Remuneration Authority (the Authority) is established under the Remuneration Authority Act 1977. The Authority’s role is to set the remuneration, fees, certain allowances and (for some) superannuation for:

• the Governor-General
• Members of Parliament, including the Prime Minister and Ministers
• Judicial officers from the Chief Justice to Community Magistrates
• Local government elected officials, including Mayors, Chairpersons, Councillors, community and local board members
• Independent statutory officers, where the holders of the office are required to exercise a high degree of independence, as set out in the Fourth Schedule of the Remuneration Authority Act 1977, members of Independent Crown Entities as specified in the Crown Entities Act 2004, and others specified within other Acts.

The Authority also sets:

• annuities for former Governors-General
• annuities and travel services for former Prime Ministers
• accommodation allowances and reimbursement for Members of Parliament and travel entitlements for members’ families.

The key roles and responsibilities of the Authority are set out in the Remuneration Authority Act 1977. A number of other Acts further define the Authority’s role in relation to specific groups and individuals including:

• Governor-General Act 2010
• Members of Parliament (Remuneration and Services) Act 2013
• Local Government Act 2002.

The Authority issues (mainly annual) determinations on salaries, allowances and superannuation in all of these areas. In order to make these determinations, the Authority researches, receives submissions and analyses remuneration and terms and conditions including developments in other jurisdictions. The Authority has the ability to conduct formal hearings but very rarely operates in that manner.

Administration

The Authority is supported in its work by an Executive Director and an Analyst seconded from the Ministry of Business, Innovation and Employment which also provides some support services. The Executive Director reports to the Chair for management purposes. The Authority also commissions advice and research from outside experts, as needed, on matters such as job sizing, remuneration surveys, legal interpretations and other complex matters outside of the Authority’s expertise.

Conditions of the role

• The Authority consists of three members, one of whom is appointed Chair of the Authority.  The Authority is able to appoint one of the other members to be the Deputy Chair.
• Appointments are made by the Governor-General by Order in Council, on the advice of the Minister for Workplace Relations and Safety.
• Members should not hold another position where the remuneration is subject to determination by the Authority, or which may be perceived as introducing a conflict of interest.

Remuneration and meetings

The Chair and members’ fees are set in accordance with the Cabinet Fees Framework. The daily rate for the Chair is $1,000. Allowances and expenses are paid in accordance with the Fees and Travelling Allowances Act 1951.

The position is based in Wellington and currently requires a time commitment of 2.5 days per week on average over the year. The work requirement is sometimes extensive, requiring near full time involvement, whereas other periods require substantially less time commitment.

Authority members’ term of appointment

Members are appointed for terms of up to three years, but may from time to time be reappointed. Authority members continue in office despite the expiry of their term until they are reappointed or their successor is appointed.

Members of the Authority may resign by written notice to the Minister for Workplace Relations and Safety. Members may be removed from office by the Governor-General at any time for inability to perform the functions of the office, bankruptcy, neglect of duty, or misconduct, proved to the satisfaction of the Governor-General.

Disclosure of interests

As part of the appointment process, candidates are required to complete a Disclosure Form. The information that is disclosed by the candidates enables the responsible Minister to know the relevant interests and any conflicts that a person may have in relation to an appointment to an entity. The information is used to assess whether a candidate would be able to contribute effectively to the Authority’s’ affairs, and where conflicts are identified, to ensure that these can be managed appropriately. 

Personal specification

Specific skills required at this time

Roles on the Authority are not simply governance focussed but have a substantial operational work commitment. There are only two staff so much of the detailed work is undertaken directly by the Chair and Members.

Candidates for the Remuneration Authority Chair role are required to have the following:

• Significant understanding of either the public sector, local government or remuneration management activities, and an in-depth understanding of parliamentary processes.
• Experience in managing senior level employees.
• Strong governance experience, including previous experience as a Chair.
• A high level of personal mana and credibility, as required for this key public sector role.
• A strong focus on detail within highly technical work, all of which must be legislatively compliant because many of the Authority’s’ determinations are secondary legislation and the others are administrative instruments which must be implemented according to their tenor.
• High level of numeracy competence including analysis of statistics and use of complex spreadsheets.
• Highly developed relationship skills.
• The Chair is the public face of the Authority and therefore also requires high levels of competence in dealing with the media.

General skills relevant to members of the Authority

The Authority’s work, by its nature, is sensitive, technical and potentially controversial. It is highly desirable for the Chair and members to have:

• pragmatism and flexibility
• judgement, tact and discretion
• knowledge of central government systems and processes
• awareness of remuneration-fixing processes, and superannuation schemes.

The Authority needs to maintain a balance of skills across its members. Ideally, the three members (including the Chair) will bring one of the skill sets of: (a) senior public sector experience; (b) senior local government experience; or (c) substantial remuneration management expertise - so all three areas are covered. All must understand parliamentary processes. Each member (including the Chair) is expected to lead work relating to a specific portfolio of the Authority’s clients.

Other areas of expertise that may be sought from time to time include:

• leadership experience
• human resources management
• ability to understand a variety of legislative frameworks