Recruiting CEO costs council $68,000

Debra Lawson.
Debra Lawson.
The Queenstown Lakes District Council spent $68,139.13 on the recruitment of its new chief executive, Debra Lawson, who starts in the job on Monday.

The amount was revealed to the Otago Daily Times yesterday.

QLDC district secretary Kelly Campbell said the amount covered the cost for the contracted recruitment company along with advertising costs, but said it did not include any payment to outgoing chief executive Duncan Field.

The recruitment cost is the equivalent of 27% of Ms Lawson's annual salary package of $250,000.

QLDC finance manager and deputy chief executive Stewart Burns said the expense would be classed as "human resources" under overheads in the council's budget, but he acknowledged the budget would most likely be breached.

"There have been funds set aside for recruitment, but this year the budget will definitely be exceeded due to this recruitment cost, and the expense will have to be covered by savings in other areas," Mr Burns said.

Queenstown Lakes Mayor Clive Geddes said the council was obliged to readvertise the chief executive position every four years, and meeting this statutory obligation included revising the position description and contract, which the recruitment company also assisted with.

"Before the process started, we did a tender round for the recruitment job.

"The recruitment company we chose delivered good value for money," he said.

In regards to breaking the budget for recruitment, Mr Geddes mentioned the council decision to bring its engineering services in-house in the second half of 2009, which meant a lot of positions were disestablished and readvertised, adding to the cost of recruitment for this financial year.

Cr Cath Gilmour said she was sure an amount of this size would raise some eyebrows, but she still felt the expense was justified.

"It seems like a lot to pay, but what we wanted was the very best candidate.

"It was important for the council to make an objective decision, so therefore it was appropriate to use an external recruitment company," Cr Gilmour said.

 

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