CITY of Newcastle chief executive Jeremy Bath has been reappointed until December 2027 on a package that will take his earnings above half a million dollars a year, in a decision communicated to councillors in a memo in the days before Christmas.
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The in-principle decision to extend Mr Bath's contract by five years was made just after midnight on February 23 last year at the first meeting of the newly-elected council.
The memo, setting out Mr Bath's contract extension and remuneration, was sent to councillors on December 21, after the final council meeting of the year.
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The memo says the council performance review panel - which comprises Labor and Greens councillors with no Liberal or Independent representatives - met on October 27 to offer Mr Bath a new five-year contract to December 12, 2027, with an increase in his "total remuneration package" of 3.5 per cent.
Council sources told the Newcastle Herald that no announcement to the public had been made about the outcome of the process, and that the public had a right to know what was being done with ratepayers' money.
The memo to councillors also notes a "performance increase of 3 per cent" for the previous 12 months.
The council's most recent annual report, for 2021-22, records Mr Bath's remuneration as $495,375 including superannuation, saying "the figures are stated in line with relevant legislation".
The exact figure may vary because of bonuses but a 3.5 per cent increase on $495,375 comes to $512,713.
Mr Bath is also paid to represent Newcastle council on the Newcastle Airport board, with airport CEO Peter Cock confirming the amount as $50,000 a year including superannuation, unchanged since 2017.
Mr Bath dismissed suggestions he should not receive the board fees on top of his council salary, saying it involved extra work out of hours.
"I finished reading airport board papers at around 12.30 last night," Mr Bath said yesterday.
A City of Newcastle spokesperson said the decision to offer Mr Bath a new contract was publicly reported in February 2022, with the new contract commencing on December 13, 2023.
"The agreed terms of the new contract were then reported to the elected council once the new contract took effect," the spokesperson said.
Council sources have questioned the performance payments, saying the council's three big infrastructure projects - the Newcastle ocean baths refurbishment, the Newcastle beach skate park and the demolition of the King Street council carpark - were all substantially over budget.
ources say councillors have been told the carpark demolition costs had virtually doubled.
They say a council workshop was told the council was "still saving money" because the expanded costs were still less than at least one of the bids received during the tender process.
The December 21 memo says the elected council resolved unanimously on February 22 to authorise its performance review panel to offer Mr Bath a new contract.
The panel was also authorised to "negotiate the terms of renewal, to finalise on behalf of the council and to notify the results back to council".
The minutes of the February 22 meeting note that the "CEO's performance review" was discussed when the council reconvened at 12.51am on the morning of the 23rd - meaning the meeting went past midnight.
The minutes say the meeting concluded a minute later, at 12.52am.
Councillors who were sitting for their first meeting after the election have told the Herald they felt as if the process was being rushed.
The minutes show seven of the 12 ward councillors were new councillors, who were officially welcomed to the chamber at the start of the meeting, after the presentation of lord mayoral chains to the re-elected Labor councillor, Nuatali Nelmes.
The December 21 memo shows Greens councillor John Mackenzie, Labor deputy lord mayor Declan Clausen and Labor councillor Carol Duncan, "in addition to the Lord Mayor", were "appointed to be part of the performance review panel".
"The performance review panel met on October 27, 2022, with the CEO to negotiate terms of a new contract," the December memo says.
"It was agreed that a new five-year contract would be offered, with an increase in total remuneration package of 3.5 per cent, which is similar to the 3.6 per cent in salary that City of Newcastle permanent employees will receive in 2023."
The memo noted that the councillors had received "the 2021 CEO annual performance review report" submitted by consultants Blackadder Associates Pty Ltd.
The Herald has been told that copies of the Blackadder report were distributed at the confidential session, and collected afterwards.
Mr Bath asked yesterday why the Herald was not reporting other council CEO packages.
Respective annual reports for 2021-22 show Maitland's general manager on a package of $438,961; Lake Macquarie's CEO was paid $398,064; Port Stephens GM received $362,616; Cessnock's was paid $335,675; Dungog's received $280,671.
In a statement, Cr Nelmes said Newcastle was "recognised as a leader in local government" and its success "is a direct result of the CEO and the 1000-strong employees working for our community".
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Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
