Question over whether council chief executive got golden handshake after quitting

Wednesday, 22 November 2023

Questions over whether Christchurch City Council’s outgoing chief executive has pocketed a golden handshake on her way out the door remain unanswered.

The council refuses to say if Dawn Baxendale received a payout following her resignation, and mayor Phil Mauger will also not answer the question.

An employment lawyer says it entirely depends on the circumstances of the situation and whether there was an employment relationship issue.

The council announced on Monday that Baxendale tendered her resignation two weeks ago, on November 6.

She then went on annual leave on November 10 and was due back on November 20. However, her leave has now been extended to November 30 when her resignation takes effect.

Baxendale’s contract was due to come to an end next Octoberand councillors had until April to decide whether to ask her to stay for another five years or to look for a new chief executive.

In the council’s statement, Baxendale said she was leaving before her contract expired for personal reasons, and felt it was timely to do so now because she had decided not to reapply for a further five-year contract.

Mauger said on Monday that it was Baxendale’s decision to resign, but he would not say if she had received any payout.

He instead repeated the rehearsed line: “The CE has resigned and I wish her all the best for the future.”

Baxendale’s salary for this year was $548,548.

Asked how likely it was that Baxendale would receive a payout following her resignation, Jordan Boyle, a partner at Dyhrberg Drayton Employment Law, said when a person leaves a fixed-term agreement early, they are not usually paid through to the end date of the contract.

However, he said it depended on the circumstances of the case and the employment agreement.

Boyle said there would have been a notice period agreed in Baxendale’s employment contract and an agreement on how that notice period was to be treated.

In some cases, people can work out their notice, or they may go on garden leave, when they are paid but not expected to be in the workplace. They can also take annual leave or sick leave if they are sick.

In the case of an employment relationship problem, an employee may negotiate an exit package, Boyle said.

If they resign for other reasons, including health, wellbeing, family reasons or to take up another role, they do not normally receive a payout.

Baxendale’s predecessor, Karleen Edwards, left in 2019 after completing her five-year contract with the council. She did not reapply for her position and did not receive a payout.

However, Tony Marryatt who started as chief executive in 2007, walked away with an $800,000 payout. He was stood down and later resigned after the council was stripped of its building consenting accreditation.

Lyttelton Port Company chief executive Kirstie Gardener quit abruptly earlier this year and received a salary and golden handshake totalling almost $1.5 million for 10 months’ work.

It is understood Baxendale tendered her resignation during the early stages of a council-commissioned independent review into her performance.

Westlake Governance was appointed earlier this year to help the council decide whether to offer her another contract once her five-year term expired next year.

While it is understood the final report has not been completed, preliminary results of a survey with a range of people, including staff, had been received.

It is understood those results were not favourable to Baxendale.

Pressure has been mounting on Baxendale for some time as she grappled with low staff morale, poor resident satisfaction and high staff turnover.