John MacDonald: Chief exec's pay cut is a statement of intent

Canterbury Mornings with John MacDonald

I don’t know whether Mary Richardson is a martyr or a mug. But, I tell you what, the acting chief executive at Christchurch City Council has shown outstanding leadership, not just outstanding leadership - she’s also shown outstanding political nous with this $100,000 pay cut.

She demanded it because of the financial pressures the council and ratepayers are dealing with, which I believe has gone down very well with staff. Not just because of that, but also because, generally people at the council like her, which is quite an achievement for someone working in senior management anywhere.

But there’s going to be a sting in the tail for everyone working at the council and the rest of us who use council services that’ll get to.

Mary Richardson has been acting chief executive since former council boss Dawn Baxendale quit suddenly late last year, and all along she’s made it clear that she’s not interested in the job full-time and would only be there until the council appoints a new person.

But they haven’t been able to, thirty-seven people applied for the job. It came down to a shortlist of three but Councilors didn’t think any of the candidates were what or who they wanted and so they went to Mary Richardson and said “How ‘bout it? Want the job.”

Mayor Phil Mauger obviously did a good job because she agreed to take it on but has told the council she doesn’t want to do a full five-year term and has agreed she’ll stick around until June 2026.

Her other provision was that she be paid $100,000 less than the money Dawn Baxendale was on. I reckon most people in her position would milk it for what they could, I’ll be honest, I would.

If I was Mary Richardson and I had Phil Mauger come to me saying they bombed-out in the recruitment process and would you please take the job, I’d be saying “I’ll do it - but I want to be paid at least as much as the last chief executive". In fact, I’d probably push my luck a bit because if you don’t ask, you don’t get.

Not that Mary Richardson is denying herself too much, because she’ll still be on a salary of $450,000 which is still a good wicket by anyone’s means.

But here’s the sting in the tail I mentioned earlier and here’s why I think she has shown outstanding leadership and outstanding political nous. It has been made very clear that local councils up and down the country are on notice from the Government to cut costs.

Time-and-time again, the Prime Minister and the Local Government Minister have said councils need to look and learn from what’s been happening in government departments and agencies. Councils need to do the same and live within their means.

Mary Richardson has obviously heard that, then she’s put a stake in the ground starting with what she herself gets paid as head honcho. It’s not an act of goodwill, it’s a statement of intent, a statement much more powerful than any new vision and mission statements that might have been trotted out by the 37 people who thought they should be chief executive.

By insisting on a $100,000 pay cut, Mary Richardson has signalled a period of austerity at the Christchurch City Council. If she has any of her people coming to her between now and mid-2026 saying they want to pay their staff more, what do you think her attitude is going to be? When the chief executive takes a $100,000 pay cut, what does that say to the rest of the organization? It says forget about pay rises.

When Mary Richardson has people saying they can’t do things any differently or more cheaply because it’s all been tried before - she has given herself license to demand that they try again. That’s what happens when the person at the top takes a $100,000 pay cut.

When someone says they need more staff - No sorry, that’s what happens when the person at the top takes a $100,000 pay cut. When the person at the top takes a $100,000 pay cut explicitly because the council and ratepayers are under financial pressures, that makes it very clear that you and I can’t just keep on demanding more of this and more of that from the council.

So while Mary Richardson will be admired today and respected, inside and outside the city council for taking a significant pay cut, we need to see it for what it really is .What it really is, is the beginning of significant belt-tightening at the Christchurch City Council.

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