Margin Call: Thorburn exit fee, Chronican pay weighs on NAB board

Outgoing NAB CEO Andrew Thorburn. Stuart McEvoy/The Australian.

Ken Henry’s NAB board assembled over the weekend to deal with perhaps the most pressing issue at the under siege bank: deciding how many million dollars to pay Andrew Thorburn in his farewell cheque.

Margin Call has learned NAB’s board — still chaired for now by Henry, at least nominally — had a phone hook-up to discuss Thorburn’s millions.

Also on the agenda: how much to pay Phil Chronican, who officially begins as the bank’s interim CEO on March 1 (but is already very much in-charge).

As we wrote last week, there could be as much as $23 million heading Thorburn’s way. That’s made up of a circa $1m termination payment in lieu of 26 weeks notice and up to $22m in potential performance rights.

That would be a stunning way for NAB to, once again, register its defiance of Kenneth Hayne’s verdict.

NAB’s remuneration committee is chaired by PwC partner Anne Loveridge, but of course all the board are taking an interest in the two packages.

Our pinstriped mail is that the board’s decision could be revealed as early as this evening, after the market closes.

As we wrote on Saturday, while he is still being paid as CEO Thorburn is now in New Zealand — by way of the Qantas first class lounge at Melbourne Airport — for a “walking holiday” with his family.

Apparently the famously energetic CEO’s rest and relaxation was briefly disturbed by a call from the board, updating him on what’s to come.

Shouldn’t be long now till we’re all the wiser.