| Chief Executive Officer Employment and Remuneration Council Policy | Approval Date: | 12 December 2023 |
| Approved by: | Council | |
| Version: | 4 | |
| Review Date: | 12 December 2027 | |
| Responsible Officer: | Chief People Officer | |
| Authorising Officer: | Executive Director Corporate Services | |
Introduction
Purpose
The purpose of this Policy is to ensure Council’s compliance with section 45 of the Act.
Section 45(1) of the Act provides that a Council must develop, adopt and keep in force a Chief Executive Officer Employment and Remuneration Policy.
Section 45(2) of the Act provides that the Chief Executive Officer Employment and Remuneration Policy must:
| 1.1 | provide for the Council to obtain independent professional advice in relation to the matters dealt with in the Chief Executive Officer Employment and Remuneration Policy and | |
| 1.2 | provide for the following: | |
| 1.2.1 | the recruitment and appointment process | |
| 1.2.2 | provisions to be included in the contract of employment | |
| 1.2.3 | performance monitoring | |
| 1.2.4 | an annual review and | |
| 1.3 | include any other matters prescribed by the Regulations. | |
Scope
This Policy applies to the employment and remuneration of the Chief Executive Officer.
Definitions
The following definitions apply to this Policy:
| Term | Definition |
|---|---|
| Act | Local Government Act 2020 |
| Acting CEO | The person appointed by Council in accordance with clause 9 of this Policy and section 44(4) of the Act to act in the position of Chief Executive Officer. |
| Annual Review Report | Has the meaning given in clause 8.4. |
| CEO | Chief Executive Officer |
| Committee | The CEO Employment and Remuneration Committee established under this Policy. |
| Contract of employment | The contract of employment between Council and the CEO, including any schedules. |
| Council | City of Greater Geelong |
| Councillors | The individuals holding the office of a member of Council. |
| Council meeting | Has the same meaning as in the Act. |
| Deputy Mayor | The Deputy Mayor of Council. |
| ELT | The Executive Leadership Team of the City, as constituted from time to time. |
| Independent Recruitment Consultant | An independent consultant with specialist expertise in sourcing and evaluating candidates for senior executive roles. |
| Independent member | The external professional appointed by Council to provide independent advice in accordance with section 45(2)(a) of the Act (as replaced from time to time). |
| KPIs | Key Performance Indicators or performance criteria however described. |
| Mayor | The Mayor of Council. |
| Mid-Year Review Report | Has the meaning in clause 8.2. |
| Performance Plan | The annual performance plan setting out KPIs for the CEO. |
| Policy | The CEO Employment and Remuneration Policy adopted in accordance with section 45 of the Act. |
| Public sector wages determination | Any Determination that is currently in effect under section 21 of the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 in relation to remuneration bands for executives employed in public service bodies. |
| Regulations: | Any regulations made for the purposes of Division 7 of Part 2 of the Act |
| Total Remuneration Package | The total gross remuneration package, inclusive of leave, superannuation, and other entitlements, paid to the CEO pursuant to the Contract of Employment. |
| Resolution | A resolution of Council made at a properly constituted Council meeting. |
Policy
2. CEO Employment and Remuneration Committee
| 2.1 | The Committee is an advisory committee to Council. | |
| 2.2 | The purposes of the Committee are to advise Council on the implementation of this Policy, by considering, and making recommendations to Council with respect to: | |
| 2.2.1 | the selection and appointment of the Independent Member | |
| 2.2.2 | independent advice received from time to time from the Independent Member | |
| 2.2.3 | performance monitoring of the CEO, including with respect to achievement of the KPIs | |
| 2.2.4 | mid-year and annual reviews of the CEO’s performance, including against the KPIs | |
| 2.2.5 | the CEO's remuneration | |
| 2.2.6 | recruitment and appointment of a CEO, if required | |
| 2.2.7 | provisions to be included in the Contract of Employment from time to time | |
| 2.2.8 | appointment of an Acting CEO, if required | |
| 2.3 | Membership of the Committee shall consist of the following: | |
| 2.3.1 | the Mayor | |
| 2.3.2 | the Deputy Mayor | |
| 2.3.3 | up to 4 other Councillors, as determined by Council from time to time and | |
| 2.3.4 | an Independent Member. | |
| 2.4 | The Committee is to be chaired by: | |
| 2.4.1 | the Independent Member or | |
| 2.4.2 | if the Independent Member is absent, the Mayor, or if the Mayor is absent, the Deputy Mayor. | |
| 2.5 | The Committee will provide a report to the next available Council meeting following each Committee meeting describing its activities and making recommendations about any action to be taken by Council. | |
| 2.6 | For the avoidance of doubt, nothing in this Policy requires Council to accept any or all of the Committee’s recommendations. | |
3. Recruitment of CEO
| 3.1 | The Committee will manage the process to recruit the CEO, designed to ensure that Council can select the best available candidate from a short list of preferred candidates (with or without a recommendation from the Committee): | |
| 3.1.1 | ensuring that recruitment decisions are based on merit | |
| 3.1.2 | supporting transparency in recruitment processes and the public advertising of positions and | |
| 3.1.3 | having regard to gender equality, diversity and inclusiveness. | |
| 3.2 | The Committee shall: | |
| 3.2.1 | make a recommendation to Council as to whether there is a need to engage an Independent Recruitment Consultant to run the recruitment process and, if so | |
| 3.2.2 | subject to the Council’s Procurement Policy, the Independent Recruitment Consultant to be appointed to run the recruitment process. | |
| 3.3 | The Committee may request administrative support from the Executive Director, Corporate Services, when addressing the matters outlined in cl 3.2 of this Policy. | |
| 3.4 | If an Independent Recruitment Consultant is engaged, the Executive Director Corporate Services or their nominee will be the primary liaison with the Recruitment Consultant in connection with the recruitment process. | |
| 3.5 | Any Independent Recruitment Consultant will be appointed on the terms agreed by Council, including that the Independent Recruitment Consultant will prepare, and provide to Council, a schedule of dates for key decisions to be made by Resolution throughout the recruitment process. | |
| 3.6 | The Committee must provide a report and recommendation to Council so that each key decision identified in the schedule prepared under clause 3.5 can, if necessary, be made by Resolution. This may include recommendations as to: | |
| 3.6.1 | the preferred candidate and | |
| 3.6.2 | the proposed high level contract terms (including the term of employment and Total Remuneration Package). | |
4. Appointment of CEO
| 4.1 | The Council will receive a report from the Committee on the completion of its role in the recruitment process, and Council will proceed to decide on a preferred candidate with the support of the Committee to negotiate and finalise the Contract of Employment. | |
| 4.2 | The Committee will provide a recommendation to Council on the provisions to be contained in the proposed Contract of Employment. | |
| 4.3 | The appointment of the CEO must be made by Resolution. | |
5. Reappointment of the CEO
| 5.1 | No more than 12 months and no less than 6 months prior to the expiry of the current CEO’s Contract of Employment, the Committee will provide a recommendation to Council on: | |
| 5.1.1 | whether the CEO should be reappointed under a new Contract of Employment and | |
| 5.1.2 | if the recommendation is to reappoint the CEO, the proposed provisions of the further Contract of Employment or | |
| 5.1.3 | whether the position of CEO should be publicly advertised. | |
| 5.2 | For the avoidance of doubt, any final decision on the matters in clause 5.1 must be made by Resolution. | |
6. Contract of employment
| 6.1 | The Contract of Employment will, at a minimum, outline the following: | |
| 6.1.1 | the employment term, which must not exceed 5 years in accordance with section 44(2) of the Act | |
| 6.1.2 | the responsibilities and duties of the position, including compliance with the Act and the Code of Conduct for Council Staff | |
| 6.1.3 | how conflicts of interest will be managed | |
| 6.1.4 | the CEO’s Total Remuneration Package and any other entitlements | |
| 6.1.5 | legislative and contractual obligations, including those during and continuing after employment | |
| 6.1.6 | processes for managing unsatisfactory performance | |
| 6.1.7 | processes for early termination, including notice of termination (or payment in lieu) provisions with notice of termination by Council being restricted to a maximum of 6 months and | |
| 6.1.8 | any other matters required to be contained in the Contract of Employment by the Regulations. | |
| 6.2 | The Contract of Employment may only be varied by a Resolution with the CEO’s acceptance, with such variation to be recorded in a Deed of Variation. | |
7. Total remuneration
| 7.1 | The Total Remuneration Package provided to the CEO will form part of the Committee’s annual review, having regard to (in accordance with section 45(3) of the Act): | |
| 7.1.1 | any statement of policy issued by the Government of Victoria which is in force with respect to its wages policy (or equivalent)1 and | |
| 7.1.2 | any Public Sector Wages Determination2. | |
| 7.2 | Remuneration will be reviewed on an annual basis, in accordance with the CEO’s Performance Plan and contractual requirements. | |
1 - Section 45(3)(a) of the Act requires Council to have regard to any statement of policy issued by the State Government which is in force with respect to its wages policy (or equivalent). The current Victorian Government Wages Policy applies in the public sector from 4 April 2023. See Wages Policy and the Enterprise Bargaining Framework.
2 - Section 45(3)(b) of the Act requires Council to have regard to the published remuneration bands for executives employed in public service bodies. See Remuneration bands for executives employed in public service bodies.
8. Performance monitoring
| 8.1 | Council will adopt an annual Performance Plan for the CEO, which will include KPIs. The Performance Plan must be developed by the Committee in consultation with the CEO and confirmed by the Council. | |
| 8.2 | In preparation for the Council’s mid-year review of the CEO’s performance, the CEO will submit a mid-year progress report to the Committee and Committee and the CEO will discuss progress against the KPIs under the Performance Plan. The Committee will then submit a mid-year review report (Mid-Year Review Report) to Council which includes: | |
| 8.2.1 | whether, and to what extent, the CEO has met the KPIs under the Performance Plan | |
| 8.2.2 | whether, and to what extent, any KPIs or other criteria ought to be varied under the Performance Plan | |
| 8.2.3 | any other necessary matters. | |
| 8.3 | Council shall, after receipt of the Mid-Year Review Report resolve upon the matters described above and advise the CEO of the terms or effect of the Resolution. | |
| 8.4 | In preparation for Council’s annual review of the CEO’s performance, the CEO will submit an end of year progress report to the Committee, and the Committee and the CEO will discuss to what extent the CEO has met the KPI’s under the Performance Plan. The Committee will submit an annual review report (Annual Review Report) to Council which includes: | |
| 8.4.1 | whether, and to what extent, the CEO has met the KPIs under the Performance Plan | |
| 8.4.2 | whether, and to what extent, the Total Remuneration Package ought to be varied | |
| 8.4.3 | the proposed annual Performance Plan including KPIs for the following year and | |
| 8.4.4 | any other necessary matters. | |
| 8.5 | Council shall, after receipt of the Annual Review Report, review the recommendations in the Annual Review Report, resolve upon the matters described above and advise the CEO of the terms or effect of the Resolution. | |
| 8.6 | Nothing in this Policy prevents the Committee and/or Council from monitoring the CEO’s performance on a regular basis. | |
9. Acting CEO
| 9.1 | Council must appoint an Acting CEO when there is a vacancy in the office of the CEO, or the CEO is unable to perform their duties under the Contract of Employment for a period exceeding 28 days. | ||
| 9.2 | The appointment of the Acting CEO must be made by a Resolution unless the Acting CEO is appointed for a period not exceeding 28 days, in which case the CEO may appoint an Acting CEO under delegation from Council pursuant to section 11(3) of the Act. | ||
| 9.3 | Where applicable, the Committee may advise Council on: | ||
| 9.3.1 | the selection and appointment of an Acting CEO, including whether it is appropriate to: | ||
| 9.3.1.1 | recruit an external candidate who is not currently employed by Council or | ||
| 9.3.1.2 | appoint an internal candidate who is a current employee of Council | ||
| 9.3.2 | the terms of the Acting CEO’s contract of employment (to the extent that the terms set out in clause 6.1of this Policy are inappropriate for an Acting appointment) and | ||
| 9.3.3 | performance monitoring and review processes, if applicable, which are to be determined by reference to the length of the Acting CEO’s term of appointment. | ||
| 9.4 | Nothing in this Policy applies to the CEO’s appointment of an Acting CEO under delegation. | ||
10. Independent advice
| 10.1 | The Independent Member is responsible for providing independent professional advice in relation to the matters dealt with under this Policy in accordance with section 45(2)(a) of the Act. | |
| 10.2 | The Independent Member will be appointed on the recommendation of the Committee following a process to seek experienced and suitably qualified persons but must not be the Independent Recruitment Consultant appointed by Council to assist in the recruitment process. | |
| 10.3 | Council will determine the: | |
| 10.3.1 | term of appointment of the Independent Member and | |
| 10.3.2 | remuneration of the Independent Member, and ensure that it is a term of the Independent Member’s engagement that the Independent Member keep confidential all information which the Independent Member acquires by virtue of the engagement. | |
| 10.4 | Council, or the Committee with the approval of a Resolution, can, on an as needed basis, obtain additional independent professional advice in relation to the matters dealt with under this Policy. | |
11. Administrative support
| 11.1 | The Executive Director, Corporate Services or their nominee is responsible for providing: | |
| 11.1.1 | information and any necessary training to members of the Committee in relation to their responsibilities under the Act | |
| 11.1.2 | advice with respect to matters before the Committee for consideration and | |
| 11.1.3 | administrative, secretarial and logistical support to the Committee. | |
| 11.2 | Council acknowledges that, in implementing this Policy, it, the Committee and/or the Independent Member will from time to time require the assistance of other members of Council staff, including assistance in relation to governance and human resources matters and procurement and contract management. | |
| 11.3 | Council, the Committee and/or the Independent Member may from time to time request a member of Council staff to provide assistance in implementing this Policy, recognising that the position of the member of Council staff is made difficult because they are accountable to the CEO (or a person acting as CEO). Requests for assistance therefore need to be limited to no more than those which are reasonably necessary. | |
12. Interaction with Act and Regulations
| 12.1 | This Policy applies subject to any inconsistent obligations in the Act or the Regulations. | |
Implementation of this Policy
Monitoring and reporting
This Policy will be monitored by the Executive Director, Corporate Services in relation to any legislative change that may affect its terms and conditions.
Advice and assistance
The Executive Director, Corporate Services manages the provision of advice to the organisation regarding this Policy. Independent professional advice will be sought in relation to the matters dealt with in this Policy.
Records
Council must retain records associated with this Policy and its implementation in accordance with its Records Information Management Policy.
Review
Council should review and, if necessary, amend this Policy within 4 years of the Approval Date.
References
Legislation
Local Government Act 2020
Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019
Documents
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