QBE loses $7 million in termination fees

QBE loses $7 million in termination fees | Insurance Business Australia

QBE loses $7 million in termination fees

On Monday, Pat Regan, the new chief of Australia’s largest global insurer, announced a full-year loss of $1.2 billion and a final dividend of 4c per share, down from the 33c payout a year ago.

However, also included in QBE’s annual report was the $7 million cost it incurred from terminating several executives.

Getting their share of the $7 million termination pay were Regan’s predecessor John Neal, who left the top job in January; David Fried, who stepped down as emerging markets CEO in August; and Colin Fagen, who used to be the top bet as Neal’s replacement, The Sydney Morning Herald reported.

QBE said Neal’s $7 million final remuneration package included $5.1 million in ‘termination benefits.’ These benefits cover the time Neal will remain in QBE’s employ, which is until December 31, to serve out his notice period. Neal will also get $1.725 million of official termination benefits, plus vesting performance rights and bonuses, on top of being paid his former CEO salary for the year.

Meanwhile, Fried got $1.2 million in termination benefits; Fagen walked away with $776,000, plus the $836,000 in bonuses which related to the previous financial year, bringing his total payout in 2017 to more than $1.7 million, the report said.

 

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