City of Melbourne CEO Justin Hanney pockets pay rise of up to $20,000

City of Melbourne’s chief executive has received a hefty pay rise, taking his annual wage past $500,000. Find out how much he has pocketed.

Melbourne City council chief executive Justin Hanney during the council meeting. Aaron Francis/The Australian

City of Melbourne’s chief executive has pocketed a pay rise of up to $20,000, taking his annual wage past $500,000.

The salary boost for Justin Hanney takes his pay deal to within striking distance of the Prime Minister and puts him on a higher wage than Premier Daniel Andrews and Liberal opposition leader Peter Dutton.

The pay increase came into effect in December last year.

Mr Hanney’s remuneration has increased from a range of $490,000 to $499,000 to $510,000 to $519,999, the Herald Sun can reveal.

That equates to a 4 per cent bump, well ahead of the 2.4 per cent growth in wages the nation recorded in the year to March.

It is also comfortably ahead of the 2.75 per cent rise federal politicians, judges and senior public servants were awarded this week.

The City of Melbourne chief’s pay boost takes his pay to striking level with the Prime Minister. Picture: Tony Gough

That pay rise takes Prime Minister Anthony Albanese’s pay to about $564,000 while Mr Dutton’s annual income climbs to around $401,500.

Mr Andrews pockets $452,475, the largest pay packet of any state leader.

Ratepayers Victoria vice president Dean Hurlston said the pay rise was a “slap in the face” to all city businesses who are struggling with pandemic recovery.

“This a time for councils to tighten executive salaries. This is well outside the annual increase that council staff are receiving,” he said.

Mr Hurlston said the pay rise was well in excess of state and federal politicians.

“There is no doubt the roles oversee large numbers of staff. What is lacking is statewide accountability metrics and KPIs for council chief executives.

“Too often we see cost blowouts, dodgy projects and all the while a bad chief executive is just moved on to another council.”

Block Arcade managing director Grant Cohen said the chief executive role was a “very challenging” position.

“The whole team at Melbourne City Council have had their work cut out for them over the past two years negotiating the challenges of Covid and it’s not an easy role,” Mr Cohen said.

The Herald Sun last year revealed Greater Geelong chief executive Martin Cutter is paid more than $430,000 a year, while chief executives at some of the state’s smallest council areas – including Buloke, West Wimmera and Yarriambiack are paid up to $230,000.

The highest salary band reported for Geelong in the most recent annual report was between $550,000 – $559,999, one of the highest in the entire state.

The City of Melbourne refused to provide comment.