A hefty exit fee for NAB chief Andrew Thorburn

NAB CEO Andrew Thorburn. Picture: Aaron Francis

What sort of farewell cheque will NAB boss Andrew Thorburn get now the board has decided the CEO should walk the plank?

The 53-year-old Melbourne born, Kiwi-accented pinstripe enthusiast — who earned a strickened $4.4 million in the bank’s last, scandalous financial year — was on a no fixed-term contract.

NAB axes Thorburn, Henry quits

Durie: NAB board panicked in face of pressure

NAB was required to give 26 weeks’ notice that the CEO’s contract is to be terminated, or pay Thorburn out $1.045m.

“Employee notice periods reflect a commercial decision to not spend on excessive termination payments when NAB has strong succession plans in place,” says the bank’s annual report. Music to the ears of potential internal CEO candidates Mike Baird, Anthony Healy and, just maybe, Angela Mentis, one of whom is expected to be tapped on the shoulder.

Thorburn — who famously cut short a second summer holiday — is also entitled to other statutory entitlements like paying out his apparently inexhaustible leave balance.

Thorburn has also amassed 273,600 NAB shares, worth almost $7m.

Then there’s also payment for unvested shares and performance rights, which are at the board’s discretion.

Thorburn has 883,451 rights that if allowed to vest could be worth $22m.

If they weren’t the same group that signed off on Thorburn’s now cancelled post-Hayne report second summer holiday, we’d say there is no way he will receive that full loot.