Angry shareholders of Australia’s largest insurance company, NRMA, have forced the resignation of both the Chairman, Nick Whitlam and the managing director, Eric Dodd. Both executives had been criticized by major shareholders and fund managers for their policies on disclosing market-sensitive information. The board stated that it had “lost confidence” in their abilities to manage the company.
Whitlam will receive a severance payout of between $450,000 and $500,000, unless a challenge by dissenting board members is upheld. But Dodd’s dismissal was not accompanied by any termination payment provision, and he has indicated that he will take legal action against NRMA in order to obtain one.
The board has appointed Ron Ross as temporary chairman and Ian Brown as interim chief executive, pending a full meeting to install new leadership.
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