Lord Mayor Lisa Scaffidi said the decision to sack Mr Stevenson was “not at all” based on his performance.
“We have made a decision as a council,” she said.
“We would like a new direction within our executive team.
“It was based on mutual consent and we’re moving forward.”
The City would not reveal how much will be paid out to Mr Stevenson.
Under the Local Government Act, the chief executive’s contract, including termination provisions and remuneration, is available to the public.
The Department of Local Government was not notified before the City of Perth dismissed Mr Stevenson last Wednesday.
A Department spokeswoman said every local government was to employ a person to be the chief executive as per the Local Government Act 1995.
“There is no requirement for a local government to advise the department in regard to employing or dismissing a chief executive,” she said.
Ms Scaffidi said termination of Mr Stevenson’s contract was “not sudden or ill-considered” and that the council was satisfied with the unanimous decision.
Planning and development director Martin Mileham is acting chief executive.
Ms Scaffidi said consideration to advertise the position would be made “in due course”.
Mr Stevenson joined the City of Perth on October 29, 2012 and has 31 years of experience in local government across three states.
He was awarded the Public Service Medal in the 2008 Queen’s Birthday Honours List for outstanding public service and leadership within local government, particularly through local government reforms.
See Opinion, page 9