The Whangarei District Council is reviewing the performance of its chief executive, Mark Simpson, after a loss in the employment court.
The Employment Relations Authority ordered the council to pay $37,000 to Mr Simpson's assistant, Jan Walters, for unfairly sacking her last year for nominating a mayoral candidate.
Mayor Sheryl Mai said the chief executive's actions have cost the council about $200,000 all up.
"If you asked me whether or not I would prefer to invest ratepayer money in other things, of course I would," she said.
"Those are the types of issues that we are dealing with our CEO, so we're going through that particular process at the moment. We're looking to review the incumbent against the criteria for where we will be going in the future."
Ms Mai said Mr Simpson's contract was up for renewal next April.