NSW Premier Nathan Rees says he expects to make a decision by next week on what perks former premier Morris Iemma will enjoy after his retirement from state politics.
Mr Iemma's predecessor Bob Carr - who served more than four years as NSW premier - has a driver, an office and an assistant costing taxpayers up to $500,000 a year.
Mr Rees today said he would look at precedents in other states while assessing "options" for the retirement package to be given to Mr Iemma, who served just over three years as premier.
He said no decision had been made but he admitted public sentiment in relation to such a deal would likely not be good.
"But having been in the job only three weeks, I can say it gets pretty hard and people who've done it for an extended period, there is an argument around this," Mr Rees told reporters.
"We don't have the stature attached to office holders in Australia that there is in the US for example.
"When we arrive at (an) accommodation for the former premier I will argue that case with the public of NSW. They're entitled to hear why we landed in that position."
The deal would be "fair and reasonable" for all parties, he said.
"I hope to do it over the next week or so."
Mr Rees said he spoke to Mr Iemma yesterday "only in the broadest terms".
"I'm of a mind to do what's fair and reasonable both by the former premier and by the people of NSW," Mr Rees said.
"I haven't had detailed discussions with the former premier.
"He knows that I've got a paper with some options sitting on my desk and I haven't had a chance to read it, let alone settle it."
He said Mr Iemma had made a "general query" about what might be available.
Mr Iemma, who resigned as premier on September 5 when his party room refused to endorse his preferred front bench, is already entitled to a lifetime pension of more than $130,000, indexed to inflation.
