Thirdslide

Chief Executive Officer Employment Matters Policy

Chief Executive Officer Employment Matters Policy Document No: CPL5.2
Approval Date: 28 November 2017
Approved By: Council
Review Date: 28 November 2020
Responsible Officer: Executive Manager People and Organisational Development Version No 01
Authorising Officer: Chief Executive Officer

1. Policy Statement

The Council is responsible for the appointment of the CEO, determining the CEO’s Performance Plan, assessing the CEO’s performance against that plan and determining the remuneration of the CEO.

This policy has been developed to support the requirements of the Local Government Act 1989 to assist Council in fulfilling its responsibilities relating to CEO employment and performance matters.

Council will carry out its functions relating to the appointment, remuneration and performance appraisal of the Chief Executive Officer in accordance with a number of leading practice principles:

  • decision-making processes that are fair, accessible and applied consistently in comparable circumstances;

  • decision-making criteria that are relevant, objective and available to the people subject to the decision;

  • decisions and actions that are conducive to ongoing good governance;

  • documentation that is sufficiently clear and comprehensive to render decisions transparent and capable of effective review;

  • employment decisions that are based on the proper assessment of individual’s work related qualities, abilities and potential against the genuine requirements of the role; and

  • decisions to appoint new employees that are based on competitive selection, open processes and objective criteria

The responsibility for assisting Council with its obligations regarding CEO employment and performance matters shall be delivered through the establishment of the CEO Employment Matters section 86 Committee.


2. References

  • Local Government Act (1989)

  • Victorian Public Sector Commission

  • Victorian State Services Authority


3. Definitions

  • “The Act” means the Local Government Act 1989

  • “CEO” means Chief Executive Officer

  • “The Committee” means a Special Committee pursuant to Section 86 of the Local Government Act 1989

  • “Contract” means the Chief Executive Officer Employment Contract

  • “Council” means City of Greater Geelong

  • “Councillor” means the Mayor or Councillor as defined by the Act

  • “Independent member” means a suitably qualified person who is not a Councillor of Officer of Council and is a voting member of the Committee

  • “Recruitment Consultant” means a Nationally recognised consultant with specialist expertise in sourcing and evaluating candidates for senior executive roles

  • “Remuneration” means salary


4. Council Policy

4.1

Establishment of CEO Employment Matters Committee

  4.1.1 Council shall establish a Section 86 Committee to be known as the CEO Employment Matters Committee (the Committee) for the purpose of recruitment of the CEO, determining the CEO’s Performance Plan, assessing the CEO’s performance against that plan and determining the remuneration of the CEO.
4.1.2 Membership of the Committee shall consist of the following:
  • Mayor, Chairperson
  • Deputy Mayor
  • Up to three (3) other Councillors

With the option to appoint an independent member.

4.1.3 The CEO Employment Matters Committee will meet at least four times a year, with authority to convene additional meetings as circumstances require.
4.1.4 A quorum of the independent chairperson and at least two other members will be necessary to transact business of the committee.
4.1.5 The Committee’s role is to assist and advise the Council on matters including:
  • Recruitment of the Council’s CEO or the person to act as the CEO
  • Determining the Performance Plan of the Council’s CEO
  • Monitoring the CEO’s achievement of the Performance plan at 6 monthly intervals
  • CEO remuneration and other contractual conditions of employment
4.1.6 Administrative responsibility and support for the Employment Matters Committee will be allocated to the Executive Manager People and Organisational Development (POD), or officer designated by that role.

The Executive Manager (POD) or their delegate has responsibility to provide:
  • information and any necessary training for members in relation to their responsibilities under the Local Government Act 1989.
  • officer advice in respect to matters before the CEO Employment Matters Committee
  • secretarial and logistical support to the CEO Employment Matters Committee.
4.1.7 The Terms of Reference contained within this Policy set out Council’s process for carrying out those functions.


5. Recruitment of CEO - Terms of Reference

5.1 Council’s role is to appoint the CEO, on the advice of the Committee.
5.2 The Committee’s role is to identify and recommend a suitable person and refer the appointment of that person to Council.
The Committee shall:
5.3 Engage a Recruitment Consultant (Consultant)
  5.3.1 In accordance with Council’s Procurement Policy and with the assistance of the Executive Manager People and Organisational Development, seek and appoint a nationally recognised Recruitment Consultant to manage and conduct the process of selection of a suitable candidate for the position of CEO. Selection Criteria should be based on the key result areas for a CEO described in the Template Attachment.
5.4 Undertake Preparation Work:
  5.4.1 In conjunction with the Consultant, develop and agree upon:
  • A recruitment sub-committee charged with interviewing leading 5-8 candidates identified by the recruitment Consultant
  • A search and selection process and timeframe
  • Setting the salary and conditions based on the industry benchmarks
  • Key accountabilities of the role- (Succinct statements about the most important things upon which the CEO will have to focus.)
  • Key selection criteria for CEO recruitment
  • Candidate application material
  • A candidate identification strategy (research, advertising)
  • Methods of applicant evaluation
  • Public Relations activities
5.5 Seek Council approval of preparatory work.
5.6   In conjunction with the Consultant, identify the candidate pool:
  • Oversee the development of the candidate pool by the Consultant, providing feedback on the quality of candidates being identified.
  • Review the Consultant report on the candidate pool and make decisions regarding which candidates should be carried forward to interviews by the Sub- Committee.
  • The Sub-Committee will interview the leading 5-8 candidates identified by the Consultant and select/refer the final 3 candidates for short list interviews with the full Council.
  • Once the preferred candidate is determined by the full Council, with the support of the Consultant, negotiate the terms of employment within the general framework for the terms of employment provided by the Council.
  • Ensure, through the Consultant, that all candidates are updated on the outcome of the process.
  • Develop and recommend to the Council an on boarding program (the “Orientation Program”) for the new CEO.


6. CEO Performance Review and Planning Process - Terms of Reference

6.1 The Council is responsible for determining the CEO’s Performance Plan with the CEO, assessing the CEO’s performance against that plan and determining the remuneration of the CEO. and to seek advice from the Recruitment Consultant on nationally recognised benchmark data.
6.2 The Committee’s role is to prepare a draft performance plan for Council’s consideration, seek expert advice on facilitation and criteria for performance plan and review, seek expert advice on remuneration benchmarks from a nationally recognised recruitment consultant, conduct a performance review of the CEO and make recommendations to Council on matters including whether:
  • the CEO meets the performance plan criteria
  • to vary performance plan criteria, remuneration, or other terms and conditions of the contract
The Committee shall:
6.3 Appoint a facilitator to assist the Committee to discharge its obligations in relation to the preparation of the draft performance plan and review.
6.4 Ensure that the CEO is consulted and advised of the process.
6.5 In consultation with the CEO, identify and agree the performance plan goals and activities that the CEO should work towards achieving over a 12 month period using the CEO Performance Plan Template Attachment.
6.6 Ensure that the CEO submits a Performance Plan Template report and is given the opportunity to present his/her self-assessment to the Council.
6.7 Ensure all Councillors are invited to provide comments of appraisal of the CEO’s performance to the Committee using the Performance Plan Template.
6.8 Attend to the collection and collation of council feedback in relation to the CEO’s performance as measured against the performance plan approved by Council.
6.9 Review the CEO’s remuneration package as a component of the annual review
6.10 Provide feedback to the CEO about their performance and proposed outcome of the remuneration review.
6.11 Report to Council Meeting seeking decision on outcomes of the review process in relation to:
  • the CEO’s achievement of the Performance Criteria
  • any proposed variation in salary; and
  • agree in relation to the setting of the performance plan for the measurement of the CEO’s performance for the next 12 month period
  • agree with the CEO on a personal and professional development plan for the next 12 month period
  • whether any options of the CEO’s contract should be exercised in accordance with the contract


Quality Records

Quality Records shall be retained for at least the period shown below.

Record Retention/Disposal Responsibility Retention Period Location
Instrument of Delegation Co-ordinator Governance Permanent Council Minutes
Employment Contract Executive Manager People and Organisational Development Permanent Rex
       


Attachments

  • Chief Executive Officer Performance Plan and Assessment Template

  • Instrument of Delegation


Template Attachment: Chief Executive Officer Performance Plan and Assessment 2017–18

Performance Plan Agreement

Signed

 

 

[Insert Name]
Chief Executive Officer
Date:

Endorsed

 

 

[Chair’s name]
Mayor, Chair of CEO Employment Matters Committee
Date:

CEO’s comments Chair’s comments
CEO Mid-year review

Signed

 

[Insert Name]
Chief Executive Officer
Date:

Approved

 

[Chair’s name]

Mayor, Chair of CEO Employment Matters Committee

Date:

Chair’s comments
CEO Annual assessment

Signed

 

[Insert Name]
Chief Executive Officer
Date:

Endorsed

 

[Insert name]
Mayor, Chair of CEO Employment Matters Committee
Date:

Chair’s comments
Final recommendation and approval Chair recommended assessment / comments

Endorsed

 

CEO Performance Matters Committee Members
Date:

Approved

 

Council Meeting
Date:



Key Result Area Performance Objectives • Measures in Support of Achievement Self-Assessment Councils overall Assessment Agreed action required / comments
Organisational Leadership High performing leadership team and organisation delivering services to the Community and the long term strategy for the City • Executive and Senior Leadership Team performance, development, and succession plans in place Yes
No
Yes
No
 
Operational Organisation delivers services to community standards • Customer Service Rating
• Overall Council Performance Score
Yes
No
Yes
No
 
Financial Services delivered within overall budget, including revenue, operating expenses and EFT management. Expenditure of capital budgets. Long term financial planning. Financial and resource governance, policy, systems, management and compliance. • Financial performance against budget
• Capital budget carryover
Yes
No
Yes
No
 
Reputation, Stakeholder Engagement, and Community Outcomes Engaging and working together with the community, employees, stakeholders and partners to continuously improve services and outcomes in accordance with Council objectives and long term vision of the City. • Positive Media percentage • Overall Council Direction Score Yes
No
Yes
No
 
Human Resources
Organisational design supports collaboration and high performance. Workplace is safe and inclusive. Service and customer focussed workforce with positive workplace culture.
• EFT Management against budget • Reduction in Lost Time Injury Frequency Rate (LTIFR)
• Positive Employee Opinion Survey results
• Achievement of Positive Duty Plan outcomes

 

Yes
No
Yes
No
 
Business Improvement Embedding and championing frameworks and processes that support internal business improvement. Aligning strategies, plans, policies, systems and processes to Council objectives. • Achievement of budgeted savings dividend Yes
No
Yes
No
 
Governance & Risk Effectiveness of strategic risk management practice and compliance culture. Effective support to Councillors and responsiveness to Councillor requests and issues. Council business and governance process facilitates constructive Council decision making.?Effective support and advice to the Mayor & Council. • Strategic Risk Register reviewed and updated
• High Risks appropriately controlled and mitigated
• Performance against Councillor Correspondence and Support criteria
• Councillor feedback
Yes
No
Yes
No
 
Chief Executive’s Overall Performance Comments:

Committee’s Overall Performance Comments:


• Assessment ratings: Yes meets expectations; No – Does not meet expectations.


City of Greater Geelong Council
Instrument of Delegation
Chief Executive Officer Employment Matters- Special Committee

Council delegates to the special committee established by resolution of Council passed on 20 September 2017 and known as the "CEO Employment Matters Committee" (the Committee), the powers and functions set out in the Chief Executive Officer Employment Matters Policy, and declares that:

  1. the delegation:

  2. 1.1 comes into force immediately the common seal of Council is affixed to this Instrument of Delegation;

    1.2 remains in force until Council resolves to vary or revoke it; and

    1.3 is to be exercised in accordance with the guidelines or policies which Council from time to time adopts; and

  3. the purposes of the Committee are those set out in the Council Chief Executive Officer Employment Matters Policy and Terms of Reference.

     

    2.1 the Committee is appointed under Section 86 of the Local Government Act and is responsible for advice to Council on Chief Executive Officer employment matters and has delegated authority to act in accordance with the Policy.


THE COMMON SEAL of GREATER )  
GEELONG CITY COUNCIL was affixed )  
hereto in the presence of: )  
     
     
Chief Administrator    
     
     
Chief Executive Officer    



Page last updated: Wednesday, 29 November 2017
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