Media Insider: RNZ boss Paul Thompson defends pay, bonus and staff increases amid media industry challenges

“Our audience is bigger than ever,” Thompson told the select committee.

“They are more diversified, on different platforms… and that’s the company’s strategy. RNZ wants to become a successful media company, with a particular focus on digital audiences.

“As part of this, watching live on RNZ National was a challenge. We know what’s happened there, which is that the available audience – people who listen to talk radio like RNZ National – are signaling that they want changes in content and tone with the station .

“We are working on it with our teams, we are paying a lot of attention to it, but I want to emphasize that we are ambitious to get these numbers back on track and we are confident that we have the right plan for the place.

“The overall story is positive, but we have some challenges ahead. »

Thompson highlighted RNZ’s digital growth and engagement, acknowledging that this has also been aided by much of its content being shared with other media outlets. (Similarly, journalism like New Zealand Herald and Stuff also helps to increase the audience of the RNZ website.)

While all major commercial media companies have been forced to endure budget cuts, the public broadcaster’s payroll increased by $5 million in 12 months, according to its just-released annual report. Its numbers increased from 309 to 347.

As Media Insider recently reported, overall payroll for the 12 months ended June 30, 2024 was $37.088 million, up from $32.080 million the year before. And the number of employees now earning more than $100,000 a year increased from 107 in 2023 to 145 in 2024, a 35% increase.

RNZ’s annual report reveals the public broadcaster has achieved less than three-quarters – 73 per cent – ​​of its 34 targets set out as part of its Statement of Performance Expectations for 2023/24.

“Of the remaining goals, some are on track or well advanced, but have not been achieved before the end of the year. Others remain ambitious goals, in which we have seen growth compared to the previous year. RNZ was and remains ambitious as it seeks to deliver exceptional public media to New Zealanders,” the annual report said.

Select committee member and National Party MP Vanessa Weenink questioned the level of performance bonuses, around $227,000, she said, about double the previous year.

“I’m just wondering what, if any, connection there is between organizational performance and the individual performance bonuses that were paid?

Thompson responded: “We set some very high goals in our PES this year and it’s really difficult to move some of these attitude measures around our charter.

“We have had success in some areas and we still have work to do in others.

“And I recognize that in terms of bonus payments, they are all linked to KPIs and a range of different areas of individual performance and we map and track that and report all of that to the board.”

He was asked if RNZ paid bonuses to its staff while others, including TVNZ, did not.

“Our bonus structure is very modest and is designed to reward this exceptional performance and guided by advice from the Public Service Commission that they are appropriate when structured correctly.

“But look, we are very aware that we need to be careful with these public funds and we will continue to evaluate how we manage these incentives.”

Committee Chairman and National MP Joseph Mooney wonders if there is a perception problem regarding the increase in salary costs.

Thompson said he didn’t think so: “Context is important; The Crown is investing in us to be a stronger cornerstone at a time when the industry as a whole is incredibly fragile, and so we need to be strong.

“We pay our employees at the average of the public sector median. We have a very clear policy on this, so we are by no means an exception, but we have also increased our workforce to fulfill our increased mandate to produce more content and modernize the organization.

RNZ is in a privileged and unique position in the media industry, with a $25 million increase in its annual budget under the previous government. This budget increase was continued by the country’s coalition government, although Media and Communications Minister Paul Goldsmith insisted on clearer performance reporting.

Select committee member and Labor MP Ruben Davidson observed: “Just to answer that question about how much money RNZ spent, I feel like it’s a fact that this funding increase was the first since 2009,” adding that he said this had allowed RNZ to have newsreaders at night. change again “unlike the flash bells and whistles everywhere else”.

Thompson believed the funding cutoff went back further than that, although it was not raised that a plateau for a media organization would resemble nirvana compared to what it endured over the same period. period – cost reductions of millions and millions of dollars. .

Thompson said of the increased funding: “We are very careful about how we deploy these funds. We know this is a once-in-a-generation opportunity to create the cornerstone of the exceptional public media New Zealand needs. So we are very conscious that every dollar serves the public.

Editor Shayne Currie is one of New Zealand’s most experienced journalists and media executives. He has held senior management and editorial positions at NZME, including editor-in-chief, editor of the NZ Herald and editor of the Herald on Sunday and has a small stake in NZME.