Former NAB boss Andrew Thorburn gets $1m on way out
NAB’s outgoing CEO Andrew Thorburn will be paid more than a million dollars to walk away from the troubled bank when he finishes up at the end of the month.
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Outgoing National Australia Bank chief Andrew Thorburn will get a $1 million golden parachute.
The exit payment comes after Mr Thorburn revealed he was leaving the bank on February 28 following criticisms of him in the final report from the finance royal commission.
Mr Thorburn had been eligible for about $20 million in other performance rights but these have been forfeited.
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NAB this morning revealed that “in accordance with contractual entitlements” the outgoing banker receives payment of $1,041,449 in lieu of 26 weeks notice.
He also receives any accrued leave.
“Exit arrangements for outgoing group CEO Mr Thorburn has resigned and will finish at NAB on 28 February 2019,” NAB said in a statement on Wednesday morning.
“In accordance with his contractual entitlements, Mr Thorburn will receive payment of $1,041,449 in lieu of 26 weeks’ notice, along with accrued leave entitlements. All Mr Thorburn’s unvested deferred awards will be forfeited in accordance with plan rules.”
At the same time the lender revealed that it’s outgoing chairman Ken Henry will not play a role in two committees set up to find a new chief and a new chair.
“The chairman selection committee will be chaired by NAB director David Armstrong and the CEO Selection committee will be chaired by NAB Director Ann Sherry,” NAB’s statement said.
“The chairman will not be a member of either committee. Global search firms will support both committees, which will make recommendations for the NAB.”
The bank announced both men would leave the company on 7 February.
Dr Henry this month also revealed he would be leaving after also being criticised by the royal commission.
Today Nab revealed two committees had been established to find replacements and Dr Henry would be on neither.
Some investors were angry that Dr Henry would have a role in finding replacements.
Meanwhile acting CEO Phil Chronican will formally take the reins at the bank on March 1. He will be paid $150,000 per month (the equivalent of $1.8 million a year) during his temporary tenure, which will expire once the committee selects the new CEO.
“Mr Chronican will not be eligible for any variable remuneration, nor will he receive non-executive director fees while in the group CEO position,” NAB said.
— with Chris Jenkins.
Originally published as Former NAB boss Andrew Thorburn gets $1m on way out
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