The chart on the first tab of the visualisation below shows the ratios of average base salary for the four management levels compared to non-management staff. These ratios have been quite stable over the last six years except for the chief executive group. As at 30 June 2020, the average base salary of chief executives in the Public Service was 4.7 times that of non-management staff. This has been trending down over time when you take into account, the change introduced to chief executive remuneration packages in 2019, with an adjustment rolled into base salary to account for the removal of performance or at-risks payments (which were outside of base salary). The ratios for other management levels were: tier-2 manager at 3.8, tier-3 manager at 2.6 and other manager at 1.7 times relative to non-management staff.
When comparing the average base salary of chief executives to the rest of the staff (including managers) the ratio was 4.3. This ratio has been trending downwards in recent years.
These Public Service CE/staff pay ratios are modest compared to the market ratios of publicly listed New Zealand firms, where CEOs have been previously been estimated to be paid 30 to 50 times more than the average wage of workers, according to a research on New Zealand pay ratios by Dr Helen Roberts at the Business School of Otago University.