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CEO Employment and Remuneration Policy

Version 1.0

Purpose and Intent

This policy is a requirement of the Local Government Act 2020 and outlines the way in which Council will manage the recruitment and appointment of its Chief Executive Officer, provides consistency for contract inclusions, performance monitoring and requirement for annual review.

Scope

This policy applies to activity undertaken by the elected Council and candidates or incumbents of the Chief Executive Officer position. 

Definitions

Key term

Definition

Council

means Casey City Council, being a body corporate constituted as a municipal Council under the Local Government Act 1989

 

Councillors

means the individuals holding the office of a member of Casey City Council

 

Council officer

means the Chief Executive Officer and staff of Council appointed by the Chief Executive Officer.

 

Policy

The employment cycle of a CEO is a core responsibility of the elected Council. This policy outlines the mechanisms which will support the Council in fulfilling its obligations regarding CEO employment and remuneration.  

CEO Employment and Remuneration Committee

Establishment

The Council must establish a CEO Employment and Remuneration Committee (the Committee) in accordance with s. 45(2) of the Act.

The Committee is to be chaired by an independent person, entitled to be remunerated for their work.

Secretariat Support

The Manager Governance/Manager People & Culture will provide secretariat support to the Committee namely

  • coordinating meetings of the Committee
  • preparing relevant documentation including reports to Council and contractual documents
  • maintaining appropriate records regarding performance reviews

Recruitment and Appointment of CEO

Council will engage an independent and suitably qualified recruitment firm to support it in recruitment and appointment of a CEO. The Committee will make recommendations to the Council when appointing a recruitment firm, determining the CEO selection criteria and developing the CEO contract.

Contractual Requirements

The CEO contract will at minimum outline:

  • the responsibilities of the position
  • conflict of interest management requirements
  • remuneration
  • legislative obligations including those continuing after appointment
  • processes for managing unsatisfactory performance or early termination

Remuneration and Expenses

Remuneration

The remuneration package provided to the CEO will be subject to the review of the CEO Employment Matters Committee.

Remuneration will be reviewed annually in accordance with the CEO Performance review and contract requirements.

Expenses

The Chief Executive Officer may be provided a Corporate Card to use in transactions related to the role of CEO. Corporate card expenditure will be reviewed and approved by the Mayor. The independent Audit & Risk Committee will receive quarterly reports on all CEO corporate card transactions.

The Council will meet expenses incurred by the CEO including:

  • Membership and subscription fees payable to professional associations which are reasonably necessary or desirable in performance of duties
  • Reasonable costs incurred where attending conferences, seminars or undertaking study
  • Reasonable costs incurred in performance of duties.

CEO Performance Plan

The Council will adopt an annual performance plan for the CEO. The Performance Plan will be developed in conjunction with the CEO and CEO Employment and Remuneration committee. 

The Performance Plan will document agreed objectives and outcomes to be delivered over a twelve-month period.

The CEO will provide progress reports to the Committee at each review.

Contract Expiry

The Committee must make recommendation to Council six months prior to the expiry of the CEO contract and with regard to current legislation to

  • reappoint the CEO
  • advertise for recruitment the role of CEO.

Responsibilities

Who

What

Manager Governance/

Manager People & Culture

Secretariat support to Council which facilitates the reports and documentation required under this policy.

Council

Appoint independent member to Chair CEO Employment and Remuneration Committee

Council

Conducting CEO performance reviews in line with adopted policy.

Audit & Risk Committee

Oversee adherence to the CEO Employment and Remuneration Policy.

Oversee adherence to the Credit Card Policy for expenses incurred by the CEO.

Relevant Forms

N/A

Document History

Date approved

Change Type

Version

Next Review Date

7 April 2020

Document Initiation

1.0

30 April 2024

 

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