Former NAB CEO Andrew Thorburn forfeits $22 million

AFR James Eyers  20 feb 2019

The bank said Mr Chronican would get a fixed monthly fee of $150,000, or $1.8 million a year — and no variable remuneration — as he moves to fix NAB's woes.

Mr Chronican, who starts on March 1, will forfeit his director fees while filling the gap left by Mr Thorburn's departure after royal commissioner Kenneth Hayne chastised group culture under his leadership.

In an Australian Securities Exchange announcement on Wednesday morning, the beleaguered NAB said its board had set up two special committees to manage the selection processes for both Mr Thorburn's role and that of chairman Ken Henry.

The former Treasury secretary also was pressured to resign, after the commission exposed a gap between leadership rhetoric and aggressive sales practices in NAB branches. Dr Henry will remain in his role until a new leader is found. 

The selection committees for Dr Henry's and Mr Thorburn's positions will be chaired by director David Armstrong and director Ann Sherry respectively. Global search firms will support both committees and form a list of recommendations for the board's decision.

NAB acting CEO Phil Chronican will be paid $150,000 a month until he can find a replacement for Mr Thorburn. Photo: Luis Enrique Ascui

Dr Henry and Mr Chronican will not be part of either selection sub-committee. Both will be members of the full board that make the selection on both positions.