Instead, it has gone to Southland District Council financial and corporate services group manager Bede Carran, at a higher salary.
Mr Alden, who will continue with the council until his contract expires on July 31, was paid $146,302 a year.
Mr Carran, who takes over on August 1, will get a salary of $175,000.
Waimate Mayor Craig Rowley said that was determined after negotiations, considering Mr Carran's experience and qualifications, along with comparisons of chief executives in similar-sized councils and remuneration reports.
A chartered accountant, Mr Alden has been chief executive since August 2007.
Before that, he had 32 years with the Oamaru Licensing Trust until 2005, when his job as general manager was lost in a restructuring.
Over the past four years, Mr Alden, as chief executive, has been embroiled in a dispute between staff, the council and Waimate building owner Keith Williams which has cost the council about $300,000.
However, Mr Rowley said that did not play a part in Mr Alden not being reappointed.
The council was required by legislation to advertise the position after seven years by one chief executive.
There were 31 applicants, of whom six were interviewed.
The appointment was based on the best candidate with the experience and skill base best suited to moving the district and council forward.
Mr Alden did not returns calls yesterday.
Mr Williams was charged by a former council building inspector with failing to apply for a certificate of acceptance and failing to comply with a notice to fix when he carried out work on his garage.
The Timaru District Court threw the case out when it was found Mr Alden did not have delegated authority and, later in an action by Mr Williams for costs, the High Court was critical of the building inspector, Angie Leckey, for not accepting the work had been carried out under urgency, issuing a stop-work notice and saying a consent was needed.
In February, the dispute was resolved after the Ministry of Business, Innovation and Employment entered into mediation with both parties.
Mr Williams agreed to carry out building work and the council would provide a certificate of acceptance.
Mr Rowley paid tribute to the work of Mr Alden and his wife, Jan. Mr Alden had worked very hard for the council in many ways, with a particular focus on improving levels of customer service.
Mr Rowley said Mr Carran brought a wealth of experience, enthusiasm and commitment and qualifications as a chartered accountant, barrister and solicitor of the High Court.
He has worked overseas in the private commercial sector, in the government sector and since November 2011 with the Southland District Council.
Mr Carran will move from Southland to Waimate with his wife and two boys. He also has a daughter studying at Auckland University.
