The National Australia Bank has arranged for outgoing chief executive Andrew Thorburn to receive a $1 million payout as well as confirm arrangements for his interim replacement.
NAB has also established special committees for the selection of the new CEO and chair, saying that outgoing chairman Ken Henry will not be involved in the process.
Mr Thorburn will receive payment of $1,041,449 in lieu of 26 weeks notice, along with accrued leave entitlements, finishing up at NAB on 28 February.
All of Mr Thorburn’s unvested deferred awards will be forfeited in accordance with plan rules, the bank said.
Temporarily acting in Mr Thorburn’s place will be Phil Chronican, a current non-executive director, who will take on the role of group CEO from 1 March.
He will be serving as interim CEO until the appointment of Mr Thorburn’s replacement, receiving $150,000 a month, an annualised remediation of $1.8 million.
NAB said Mr Chronican will not be eligible for any variable remuneration, nor will he receive non-executive director fees while in the CEO position.
The chairman selection committee will be chaired by NAB director David Armstrong while the CEO selection committee will be chaired by NAB director Ann Sherry.
The bank added it is using global search firms to support both committees.
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