Chief Minister Katy Gallagher says it was not her job to accept the offer of a pay cut by ACTEW Managing Director Mark Sullivan.
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Ms Gallagher said on Tuesday that it was up to the board of the utility to set Mr Sullivan’s wage but that she had asked for reassurance that the Managing Director’s pay level was appropriate.
Mr Sullivan broke his silence on Tuesday morning over the controversy that has been raging about his $855,000 pay packet with a combative radio interview were he said he had offered to take a pay cut but that Ms Gallagher had refused the suggestion.
Ms Gallagher confirmed later on Tuesday, after crisis talks with Mr Sullivan and ACTEW Chairman John Mackay, that she had received and refused the offer.
“The shareholders received a response from the Chair of the board around possible changes to the remuneration arrangements for the Managing Director,” the Chief Minister said.
“The shareholders responded and said that it was a matter for the board to consider and it may well consider it but we’re certainly not in a position, I think, where politicians should be forming views or changing people’s remuneration.
“That’s not the shareholders’ job.
“We’ve made it clear from the beginning that we expect the board to do that…and we expect that to be informed by independent analysis of the job and that we expect it to in line with industry benchmarks for the job.”
Ms Gallagher said that she had agreed with ACTEW to hold a special general meeting of the board and the two shareholders, The Chief Minister and the Treasurer, in an effort to resolve the issues.
“The next step is to have a special general meeting of the board and close the matter,” she said.