Dozens of senior managers at Wolverhampton City Council will be denied their annual pay rises if they fail to make progress.
And the four highest-earning officers including chief executive Simon Warren are to see their pay cut by £1,989 from next month after they agreed to give up an allowance to run their cars.
They will also be expected to pay for parking rather than using the council car parks for free.
Up to 69 senior managers will lose out on their annual pay rises from 2014 if they fail to meet certain targets.
Mr Warren said in a report: “Progression will be dependent upon, but not limited to, contribution to delivery of work programme objectives, team work and performance in the role.
“Criteria will be developed, and used fairly and consistently, to manage pay within the agreed pay ranges.” Meanwhile, Councillor Paul Sweet, who oversees human resources for the ruling Labour group, praised directors for giving up their car allowances early, saying it was a “very positive move on their part”.
The cost-cutting moves announced today come as it emerged that two of the directors –Keith Ireland and Tim Johnson – are to be paid £130,000 a year after the roles were filled for the past two years by interim staff on daily rates of £750. Mr Ireland was currently doing the job of “delivery director” on an interim basis and is in charge of human resources, payroll, bin collections and back office roles such as legal.
Mr Johnson replaces interim director Charles Green, who has been in charge of regeneration and education and is retiring. The permanent roles will save taxpayers £119,948 a year.
There is also a further pay cut for director of communities Sarah Norman, who oversees social services. Her salary is dropping from £132,501 to £131,818 after a “market forces” bonus to keep her in Wolverhampton at a time when her role was in demand elsewhere was dropped.
Wolverhampton City Council is trying to make £60m savings over the next five years, and there are warnings that hundreds of jobs could go.
It is facing a £50m increase in its wage bill over the next five years as a result of implementing “single status” arrangements to iron out decades of inequality between men and women.