Councillors meeting in Hull approved the appointment of Darryl Stephenson, a former chief executive at East Riding Council who has been working for the authority as a consultant CEO for £600 a day.
Mr Stephenson headed Hull Council nearly two decades ago but returned following Nicola Yates’s sudden departure in the summer. He had been hired through consultancy firm Hardmoor Associates Ltd, of which he is a director.
The terms of his employment, on a month-by-month contract with a one-month notice period on either side, has led to anger, with campaigners demanding he be taxed in exactly the same way as every other council employee.
Council leader Coun Steve Brady said from now on Mr Stephenson would be an official council employee: “Today full council agreed to extend Mr Stephenson’s appointment as chief executive.
“Mr Stephenson will be appointed for a year until the end of October 2013 and he will become a council employee on the same salary as the previous chief executive.”
Mr Stephenson is expected to oversee changes to “generous” terms and conditions at the cash-strapped council, which is halfway through making £100m cuts, against union opposition. Hundreds more jobs are to go at the council, which last year shed 1,000 posts.
For the second month in a row yesterday trade unionists held a lobby outside the Guildhall in a campaign against cuts.
Unison Hull City branch secretary Adrian Kennett said: “Councils across the UK must join with us in a coalition of resistance to bring this coalition of millionaires to an end.”
Ms Yates’ total remuneration, including pension, was £206,709.