An annual pay packet of $479,486 has been approved for Queenstown Lakes District Council (QLDC) boss Mike Theelen.

His performance review process took account of council’s performance against its capital works programme, resource consent delivery, and the council’s credit rating, with the final pay decision based on national benchmarking advice.

QLDC mayor Glyn Lewers said Mike had demonstrated “capable and strong leadership” throughout his tenure and in particular during the past year.

“Rapidly changing government priorities, major capital investment needs, maintaining high-quality levels of service to the community, and responding to the myriad needs of significant and sustained growth in the district is a relentless challenge,” Glyn said, adding that Mike continues to tackle the challenge “head on”.

Councillors approved the remuneration package at their meeting last week (Thursday September 19), following an annual performance review process completed by the QLDC chief executive performance review committee, which comprises mayor Glyn Lewers and councillors Lyal Cocks (Wānaka) and Lisa Guy (Arrowtown-Kawarau).

Lyal told the Wānaka App he acknowledged it may be difficult for ratepayers to comprehend a 15 percent pay increase for the council CEO after the delivery of an austere Long Term Plan.

“The role is a big role,” he said, adding that Mike is managing a range of issues based on “political decisions”, including the controversial Manawa and Lakeview projects.

“CEOs are fair game for anything that goes wrong. That’s why he gets paid the big dollars, because the buck stops with him.”

The performance review process was facilitated by independent specialist consultants, Decipher, and the chief executive position was benchmarked with local government market data. The position had not been assessed since 2019 as the last review (due in 2021) was paused due to the Covid-19 response.

CEOs’ pay is benchmarked against the local government rate and market rate, and Lyal said QLDC has resisted using the market rate and instead stuck to the local government rate.

“We did it as a process, we did it based on benchmarking, based on his performance, and that’s where it’s at,” Lyal said.

Mike’s key performance indicators (KPIs) are reviewed each year and last year new KPIs were included, for example more detail on council’s capital expenditure and “quick wins”.

Mike performed well on ‘quick wins’, such as the council’s “quick and effective” response to the cryptosporidium outbreak late last year, and the response to the directive from the Local Government Commission for QLDC to prepare an action plan to address perceived inequities with the Wānaka-Upper Clutha Ward.

Lyal pointed out that, on a per capita basis, QLDC staff service more resource consents than any other council in the country, including Auckland.

Glyn said in the past year, QLDC council delivered 88 percent of the capital programme (a substantial increase from previous years). 

“Maintaining council’s AA- credit rating in a notably challenging economic environment has been a further achievement,” he said.

Glyn also cited Mike’s influence on “a positive workplace culture” and “highly engaged staff committed to serving the community”, as well as Mike being respected at a regional and national level in championing the district’s needs.

Glyn said council is an increasingly complex business and the Queenstown Lakes district has ongoing growth challenges and fiscal constraints.

“Few people can deliver on this and fortunately for us Mike is one of those who can,” Glyn said.

“I continue to thoroughly enjoy working alongside Mike and his team who are forward-thinking, innovative and dedicated public servants.”

Mike joined QLDC as chief executive in February 2016 and was reappointed for a further five years in November 2020 (effective from February 2021).

PHOTO: Supplied