Second pay rise in six months for City of Melbourne CEO Justin Hanney

City of Melbourne’s chief executive has just copped his second pay rise in six months and is now nearly earning as much as the Prime Minister.

Justin Hanney has copped his second pay bump in six months. Picture: Aaron Francis

Ratepayers have reacted with outrage that the City of Melbourne’s chief executive has pocketed another pay rise that means he now rakes in almost as much as the Prime Minister.

Justin Hanney now enjoys an eye-watering annual package of $534,000 under a four-year-deal that begins on July 1.

It’s the second pay rise in six months for Mr Hanney, who has been dubbed an “exceptional leader” by Lord Mayor Sally Capp.

His pay has increased by about $34,000, or 6.8 per cent, since December 2021, making him easily the best remunerated council boss in Victoria.

Mr Hanneywill now bring in a whopping $70,000 more a year than Premier Daniel Andrews, who is the highest paid Premier in Australia.

And Mr Hanney’s salary is within range of the $564,000 earned by Prime Minister Anthony Albanese - only falling short by a mere $30,000.

Mr Hanney’s pay is within range of the $564,000 earned by Anthony Albanese and more than Daniel Andrews. Picture: Luis Enrique Ascui

However, the PM has extra privileges such as official residences with staff.

Mr Hanney’s earnings also eclipse Opposition Leader Peter Dutton’s wage of $401,500.

Mr Hanney, who was first appointed in 2019, has had his contract renewal brought forward by six months.

Ms Capp said she had seen first-hand the effort that Mr Hanney had “put in over the past three years to keep our city running during lockdowns”.

“Justin’s leadership has been invaluable during the pandemic when we have needed to be agile and adapt to dramatically changing circumstances including lockdowns and work from home requirements,” she said.

“He is an exceptional leader – the team at City of Melbourne is stronger, more cohesive and more customer focused since his arrival in 2019.”

But Ratepayers Victoria vice-president Dean Hurlston slammed the increase.

“We understand that CEOs and large councils run incredibly complex organisations, however this is an organisation that has a bloated executive,” he said.

“There is a deputy CEO earning around $400,000 a year and now this.

“What is it that ratepayers and business owners are getting for this money?

“The answer is not much.”

Mr Hurlston said he supported council staff getting a pay rise but not the CEO.

Mr Hanney, who has overseen a significant turnover of senior staff, has pushed strongly for council employees to routinely work from the office, and called for the same for state and federal public servants.

The Lord Mayor said his leadership and teamwork skills were seen in the rising number of people returning to the city.

Deputy Lord Mayor Nicholas Reece said Melbourne was the hardest hit municipality in Australia by the pandemic.

“During this really challenging time, our CEO did an extraordinary job of leading the council and our people,” he said. “He showed incredible resilience and focus, and his leadership was outstanding.”

Mr Hanney, who lives in the CBD, said the council had embarked on the most ambitious four-year plan in its history to revitalise the city.

“My reappointment is a vote of confidence not only in me as the CEO, but more importantly the organisation, and the 1600 committed workforce and hundreds of contractors who commit themselves every day to Melbourne,” he said.

Mr Hanney’s previous roles include lead deputy secretary in the state Department of Economic Development, Jobs, Transport and Resources, and chief executive of other councils including Yarra.