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Crown Entities Act 2004

Operation of Crown entities - Provisions applying generally to Crown entities - Employees

117: Employment of chief executive

You could also call this:

"Rules for Hiring a Chief Executive"

Illustration for Crown Entities Act 2004

You can be a chief executive of a statutory entity for up to 5 years. You can be reappointed after that. The board and you must agree on your terms and conditions. The board must get written consent from the Public Service Commissioner before finalising your terms and conditions. The Public Service Commissioner must consider things like the entity's context and the public interest. They must also think about the person's knowledge, skills, and experience. If the Public Service Commissioner does not agree with the terms and conditions, they must give reasons. They must also give advice and guidance to the boards of statutory entities about chief executives' terms and conditions. If the board does not follow these rules, it does not affect the chief executive's work.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330367.

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Part 3Operation of Crown entities
Provisions applying generally to Crown entities: Employees

117Employment of chief executive

  1. A chief executive of a statutory entity is appointed for a term of not more than 5 years, but may be reappointed.

  2. The terms and conditions of employment of a chief executive of a statutory entity appointed by its board must be determined by agreement between the board and the chief executive.

  3. However, the board must obtain the written consent of the Public Service Commissioner before—

  4. finalising the terms and conditions; or
    1. amending any or all of the terms and conditions once they have been finalised.

      1. When considering the terms and conditions of a chief executive, the Public Service Commissioner must have regard to the following (among any other relevant factors):

      2. the legal, commercial, and operational context of the entity:
        1. any information provided by the board, which might include, for example, the board’s advice about a person's knowledge, skills, experience, and performance:
          1. the public interest in prudent stewardship of public resources:
            1. Government expectations:
              1. relevant market information.

                1. The Public Service Commissioner must provide reasons for refusing consent to any proposed terms and conditions.

                2. The Public Service Commissioner must provide the boards of statutory entities with advice and guidance on the terms and conditions of employment of chief executives of entities.

                3. A failure to comply with this section does not invalidate the acts of a chief executive of an entity.

                Notes
                • Section 117(1): replaced, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2): replaced, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2A): inserted, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2A): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).
                • Section 117(2B): inserted, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2B): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).
                • Section 117(2C): inserted, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2C): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).
                • Section 117(2D): inserted, on , by section 5 of the State Sector and Crown Entities Reform Act 2018 (2018 No 31).
                • Section 117(2D): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).