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Former Christchurch council boss gets golden handshake

Monday, 23 September 2024

The Ombudsman forced Christchurch city council to release the information, following a complaint by The Press.

Former Christchurch City Council boss Dawn Baxendale walked away from her job with a $126,000 golden handshake.

It took 10 months and an order from the Ombudsman for the council to release details of Baxendale’s exit package.

The council has previously refused to say if Baxendale received a payout, prompting The Press to make a complaint to the Ombudsman.

Following an investigation, the Ombudsman decided public interest overrode privacy about the payout and instructed the council to release the amount.

The council said on Monday there was an agreed settlement between Baxendale and the council. Both parties received separate legal advice and $126,026.78 was paid to Baxendale “to resolve employment and privacy matters”.

Based on Baxendale’s salary of $548,548, approved by the council in December 2022, she was paid $11,428 a week, so her payout covered about 11 weeks of her salary.

The council has not released the total remuneration paid to Baxendale last year. It said that figure would published in its annual report, expected to be released next month.

The remuneration would include financial and non-financial benefits she was entitled to under her employment agreement, including final payment of salary, holiday pay, car park or superannuation contributions, the council said.

Former Christchurch City Council chief executive Dawn Baxendale resigned from her role in November, citing personal reasons.
Former Christchurch City Council chief executive Dawn Baxendale resigned from her role in November, citing personal reasons.

Baxendale tendered her resignation in early November, went on annual leave and did not return to work before her resignation took effect on November 30. She cited personal reasons for her departure, which happened 11 months before her contract expired.

In a statement released at the time, Baxendale said she felt it was timely to leave now because she had decided not to reapply for a further five-year contract at the council.

She said the council was developing its long-term plan (LTP) for the next 10 years and it was appropriate for a new manager to lead the organisation through it.

However, she left at a crucial time in the plan’s development.

Baxendale had grappled with low staff morale, poor resident satisfaction and high staff turnover.

She resigned during the early stages of a council-commissioned independent review into her performance, which was understood to not be favourable to her.

Baxendale pictured here during her first day on the job in October 2019.
Baxendale pictured here during her first day on the job in October 2019.

It is understood Baxendale, who moved to the city from the United Kingdom to take up the role in 2019, is still living in Christchurch.

Her husband, Scott Baxendale, is acting chief executive at Westland District Council. He was appointed to the position in June, after working as a group manager at the Hokitika-based council since May 2021.

Scott Baxendale replaced former chief executive Simon Bastion, who resigned from his position on June 17, effective immediately.

The Christchurch City Council began a hunt for a new chief executive in June. Senior manager Mary Richardson has been acting chief executive in the meantime.

The council interviewed three short-listed candidates early this month. It hopes to make a decision early next month, and will announce the appointment once a contract has been finalised.

Staff turnover increased during Baxendale’s tenure.
Staff turnover increased during Baxendale’s tenure.

The same week Baxendale resigned, chief financial officer Leah Scales went on sick leave and she too resigned a few weeks later, leaving just two members of the once five-strong executive leadership team.

Former infrastructure, planning and regulatory services general manager Jane Davis left in mysterious circumstances earlier last year, at the same time that Three Waters boss Helen Beaumont also left.

About two-thirds of the council’s permanent staff left the organisation during Baxendale’s four-year tenure.

The council has about 2550 permanent staff and 1715 left during that time, resulting in an annual turnover of 17%. During the four years before Baxendale’s term, the average annual turnover was 13%.

The Ombudsman also intervened over former Gore District Council chief executive Stephen Parry’s payout. Parry left in May with more than $290,000, and a vehicle.

Golden handshakes appear the norm when executives leave.

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

Former Christchurch City Council chief executive 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.