Auckland Transport board ignores wishes of Mayor Wayne Brown and hands AT boss large salary and bonus scheme

The Auckland Transport (AT) board has ignored the wishes of Mayor Wayne Brown and appointed Dean Kimpton chief executive, with the highest salary in the council group.

Brown had made it clear to the mostly unelected directors no head of a council-controlled organisation (CCO) should be paid more than the Auckland Council chief executive.

Brown announced in November acting chief executive Phil Wilson would become the permanent chief executive with a salary of $600,000.

The previous council chief executive, Jim Stabback, was paid $630,000. Wilson graciously accepted a lower salary.

The AT board set Kimpton’s salary at $620,000 and introduced a performance-based bonus scheme on top.

Board chairman Richard Leggat, who comes from a corporate background where bonuses are common, said the bonus was exclusive among AT staff to Dean and an acknowledgement of the level of his position, the size and complexity of AT, and an incentive for him to perform exceptionally well.

Leggat said Kimpton’s salary remained the same as when he was appointed to his initial 18-month fixed term, at $620,000, plus a bonus of up to 15%. This would take his earnings up to $713,000, or 19% higher than Wilson’s salary.

“Given the size and scale of the role, the AT board has deemed it fair and appropriate for Mr Kimpton to be offered his current salary and a performance-based bonus of up to 15%. This is entirely dependent on meeting key performance indicators, which have been agreed with the AT board. The mayor was aware the AT board was considering a performance component to the chief executive’s remuneration,” Leggat said.

The last time a CCO board topped up a salary with a bonus – Panuku chief executive Roger MacDonald received a $70,000 bonus in 2019 – previous Auckland Mayor Phil Goff was furious and told the board to exercise constraint. Months later, Panuku scrapped bonuses to the chief executive and other staff.

And in 2017, following a furore over rising salaries, council chief executive Stephen Town assured Goff council salaries did not include variable pay components such as bonuses and incentives common in the private sector.

A highly placed council source told the Herald the AT board obtained independent advice on Kimpton’s salary, which recommended a significantly higher figure than $620,000.

The AT board also brushed aside Brown’s desire for a proper recruitment process for a new chief executive and reappointed Kimpton without advertising the role. It is understood the mayor favoured AT’s head of public transport and active modes, Stacey van der Putten, for the job.

The appointment comes four weeks after Brown announced plans to “dethrone” AT and hand the reins to elected representatives.

“The layers of bureaucracy and management within AT are totally impenetrable to elected politicians. We ask for information and don’t get it. We tell AT through the letter of expectations what they should do, and they often don’t do it. They have made some progress on a few things, but there is no sense of urgency,” he told the Herald.

Leggat said during his 18 months, Kimpton had challenged the organisation to improve its service to Aucklanders, with a focus on network productivity and delivering great public transport services for Aucklanders.

“Under Dean’s leadership, the organisation’s structure has been redesigned to focus on doing the right things and doing them exceptionally well. We still have work to do to increase Aucklanders’ trust and confidence in AT but the board is very confident Dean is the right person to do this,” said Leggat.

The Herald is seeking comment from Brown.