Home / Corporate / Regan gets $310,000 severance payout
14 September 2020
Former QBE Group CEO Pat Regan will get just $310,000 in severance payout, the insurer announced last week, following a probe into his communications with a female employee.
The payout is in lieu of a reduced notice period plus statutory leave entitlements and represents a drastic cut from Mr Regan’s annual remuneration, which came up to $US4.43 million ($6.1 million) last year.
He will not receive any grants under the QBE Incentive Schemes for the 2020 Financial Year and all of his unvested conditional rights under the incentive schemes will lapse immediately, in accordance with plan rules, the insurer says.
Mr Regan concluded his tenure last Tuesday, more than a week after QBE announced he was leaving the insurer following an external probe into workplace communications that revealed “poor judgment” on his part.
QBE has refused to provide more details about the investigation.
According to QBE’s 2019 annual report, Mr Regan’s $US4.43 million package was made up of $US1.46 million ($2 million) in base salary, other short-term employment benefits, leave accruals and $US2.1 million ($2.9 million) of share-based conditional rights payments.
His remuneration package fell under the executive key management personnel (KMP) category. The annual report says if a KMP executive is terminated involuntarily in relation to a cause or poor performance, all unvested incentives are forfeited. The same applies if it is a voluntary termination.