UPDATE: New reports reveal that five councils in the Hunter and Central Coast regions are paying their chief executives more than New South Wales Premier Chris Minns. The latest annual reports show alarming salary figures that raise questions about local government spending.
Central Coast Council chief executive David Farmer tops the list with a staggering annual remuneration of $562,000. Meanwhile, Jeremy Bath, CEO of the City of Newcastle, earns $528,366, significantly higher than Premier Minns’ salary of $431,540. Also noteworthy is Jeff Smith, general manager of Maitland City Council, whose salary stands at $483,388.
The earnings of these executives surpass those of many senior officials in Sydney councils. For context, the general managers of Cessnock and Lake Macquarie earn $481,338 and $474,126, respectively. In stark contrast, councils in higher socioeconomic areas like Waverley and Woollahra are paying their leaders $459,440 and $458,213, still lower than the figures in the Hunter region.
Most Hunter councils are compensating their executives more than senior NSW government ministers, who receive $344,729 annually, with the exception of Muswellbrook, where the general manager makes $280,344. The total expenditure on CEOs among nine Hunter councils is nearly $4 million per year.
Adding to the concern, Bath’s income is further supplemented by an additional $80,000 from his role on the Newcastle Airport board, bringing his total remuneration to an eye-popping $608,366. This figure exceeds the salary of Sydney’s highest-paid CEO, Jason Breton of Liverpool, who earns $591,533.
In response to scrutiny over its CEO’s salary, Central Coast Council defended Farmer’s remuneration by highlighting the council’s significant responsibilities, including serving a population of 355,000 residents and providing essential water and sewer services. The council stated, “Central Coast Council is only slightly behind the City of Sydney as having the highest income and expenditure of councils in New South Wales.”
A spokesperson for the City of Newcastle emphasized that Bath’s salary is competitive within the top 20 Sydney councils, indicating that Newcastle’s council has been a leader in Development Application approvals and has delivered a surplus of $8 million last year. They noted that Newcastle’s infrastructure spending set a record for councils in the Hunter Region.
The figures released are based on the councils’ annual reports and do not account for additional payments such as Bath’s earnings from the airport board. With the median general manager wage across Hunter councils at $444,063, the numbers remain concerning compared to the median salary for CEOs in Sydney, which is $464,000.
As communities digest these figures, it’s critical to monitor how local governance and spending practices will evolve. The debate over the fairness and transparency of these salaries is likely to escalate, putting pressure on councils to justify their expenditures to ratepayers.
Stay tuned for more updates as this story develops.
