Newcastle council chief executive Jeremy Bath will not receive a pay rise this year after an internal review rated his performance at 84 out of 100.
Councillors debated Mr Bath's annual performance review behind closed doors for about two hours on Tuesday night.
The review followed an independent investigation last year into his friend Scott Neylon's misleading letter-writing to the Newcastle Herald.
The investigation concluded that there was insufficient evidence to support allegations that Mr Bath had contributed to Mr Neylon's letters or shared confidential information with Mr Neylon.
Mr Bath denies writing the letters or influencing Mr Neylon to do so.
The Herald has been told Labor councillors moved at Tuesday's meeting that Mr Bath receive a 1.5 per cent pay rise, but the Greens successfully moved an amendment to leave his remuneration unchanged.
Mr Bath said on Wednesday that he was "encouraged by the elected council scoring my performance as CEO as 84 out of 100 for the past 12 months".
"I believe this score reflects what has been a great year for our city, which saw a record delivery of community infrastructure, including the historic upgrade of Newcastle Ocean Baths, outstanding major events including the RAAF Airshow and Pink, and a modest financial surplus," he said.
"The number of complaints from the community also hit their lowest number since we started keeping records more than 30 years ago.
"This success is thanks to the efforts of our more than 1200 employees who, like me, are committed to improving our delivery of services so that Newcastle can continue to be such a wonderful city to live in."
The council's 2022-23 annual report listed Mr Bath's pay at $513,000. He also receives a total of $50,000 to sit on two Newcastle Airport boards.
His annual performance review is overseen by a committee including lord mayor Nuatali Nelmes, deputy lord mayor Declan Clausen, fellow Labor councillor Carol Duncan and Greens councillor John Mackenzie.
The council awarded Mr Bath a five-year contract extension at the end of 2022.
