Cleanaway Waste Management was pummelled by investors on Thursday after chief executive Vik Bansal resigned in a "mutually agreed" decision with the board, following a deluge of allegations about the "culture of bullying and harassment" under his leadership.

Shares in the $5 billion Cleanaway had risen 300 per cent during his tenure but slumped 8.5 per cent on the news of the departure of Mr Bansal, to whom fund managers had attributed much of the company's success.