In the wake of recent media coverage of the salaries paid to a handful of senior executives in the city of Bell, California, ICMA, the International City/County Management Association, affirmed that the standard practice for establishing the compensation of local government managers is fair, reasonable, transparent, and based on comparable public salaries nationally and regionally. 

“ICMA firmly believes that excessive compensation packages during a time in which local governments are struggling to provide essential services to communities are damaging to the public trust and to the local government management profession,” Executive Director Robert O’Neill said today.

ICMA recommends that, as is the norm in other fields and professions, the starting point in any salary negotiation be to establish what comparable public sector executives earn and how competitive the local government wants to be within the marketplace. Other variables such as the size, complexity, and financial resources of the organization and the individual’s credentials and experience should also factor into compensation.

Once a package has been negotiated between the elected officials and the manager, that package, along with any other provisions included in the employment agreement or contract, must be considered and approved in a public meeting. This transparency is essential to ensure that the public, as well as all elected officials, are informed. Any future increases or amendments likewise must be subject to public notice and action.

Local government managers have an ethical responsibility to be reasonable, fair, and clear about what is being requested and to avoid excessive compensation. Elected officials have an obligation to seek advice, either from internal resources or a third party, as they consider compensation requests; to understand the financial impact of those requests on the organization; and, in the interest of transparency, to approve all compensation during a public meeting. 

While the Bell situation is unusual and certainly an outlier, dedicated public employees should be fairly compensated for the hard work that they do. That compensation should not be so far out of alignment, however, that it undermines the public trust, particularly during times of financial duress.  

For more information on transparency and ethical practices, visit http://icma.org/ethics.