Hindmarsh Shire Council chief executive Greg Wood will stay with the council for another two years, following the decision at a closed-door council meeting on Wednesday.
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Mr Wood's tenure as chief executive was due to end in September 2021, with the council having to decide whether to advertise the position or continue his contract.
Councillors ignored a petition calling for the role to be formally advertised.
A letter penned from former Hindmarsh councillor Joan Bennett was presented to the meeting, in which Ms Bennett expressed her disappointment with the council.
"Why is council acting with seemingly undue urgency in the reappointment process? Why has council chosen to reappoint the CEO without advertising the position?" she said.
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"Ratepayers are being kept in the dark. It is worth noting that the CEO salary and entitlements are directly paid by the shire ratepayers."
Ms Bennett also said the council had missed an opportunity to attract more qualified candidates by not advertising the vacancy.
A petition from Hindmarsh resident Christa Farinha has also been circulated.
Ms Farinha said the petition asked people if they agreed "that the position of Hindmarsh Shire Council CEO should be re-advertised by council," and received more than 320 signatories.
Despite the public outcry, Hindmarsh mayor Ron Ismay said the council was pleased with Mr Wood's performance.
"Council has been very happy with the performance of Mr Wood as CEO and we look forward to working with Mr Wood for a further two years," he said.
"Under Mr. Woods' leadership, council is now in the strongest financial position since amalgamation and a strong governance position as he has implemented numerous protocols and procedures to ensure strong, transparent and accountable practices are undertaken and followed throughout all areas of council."
The re-appointment of Mr Wood was subject to public scrutiny, with many concerned over the lack of consultation on the re-appointment and a failure to publicly advertise the position.
Cr Ismay said councillors had seen the petition and considered it in their decision.
Mr Wood said he was looking forward to getting on with the job.
"I am delighted to be re-appointed to the role of CEO of Hindmarsh Shire Council and I look forward to continuing to grow Hindmarsh as a strong small rural Council," he said.
"We have achieved some fantastic outcomes for the residents of and visitors to the shire however there is still a lot of work to be done across many sectors of the shire and with the positive strategic direction from Council I am sure that we can collectively achieve more great results."
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