Former Reserve Bank governor Adrian Orr has been paid nearly half a million dollars, in addition to $760,000 in remuneration, after he abruptly quit his job in March.
The "restraint of trade payment" amount was disclosed today in the bank's annual report, showing Orr was paid nearly $1.2 million total in the period since July 1, 2024.
Around $766,180 of the total amount was his overall remuneration – including salary, KiwiSaver employer contributions and other employee benefits – while $416,120 was paid to the former governor this month for restraint of trade.
A spokesperson for the Reserve Bank (RBNZ) confirmed to 1News that the payment had already been made to Orr.
"Adrian's terms and conditions of appointment as governor, agreed at the time of his appointment, included a restraint of trade period for six months, offset against any income he earns," the spokesperson said.
"This is to protect confidential information he was privy to as governor. The fact of a restraint of trade payment as part of Adrian's exit agreement was disclosed by RBNZ when it released information under the OIA about his departure on June 11."
When asked today, Finance Minister Nicola Willis told 1News that questions about the details of the exit agreement "should be addressed to the Reserve Bank and Mr Orr".
Speaking to reporters this afternoon, Prime Minister Christopher Luxon said: "I'm not getting into the merits of this particular contract.
"That's an employment matter for the bank to talk through."
He said the board held the contract with the governor and "we need to respect employment law".
"That is something that is signed off by the board and the governor, and the employment contract and that is an issue that ultimately the board and the bank is responsible for."
In its exit agreement disclosure earlier this year, the Reserve Bank said Orr would not receive a severance payment, as defined by the Auditor-General.
Turmoil over the governor's departure consumed the upper echelons of the institution in the past six months, with board chairperson Neil Quigley resigning in August after a storm of criticism over his handling of the situation.
It comes after a period of turmoil for the Reserve Bank that saw Governor Adrian Orr and chairman Neil Quigley resign. (Source: 1News)
At the time, Willis said she would have directly requested Quigley's resignation had he not voluntarily quit his role.
Partway through a five-year term, Orr departed the bank abruptly in March in what was termed a "personal decision", and with questions unanswered for months as to why.
It was later revealed that the former governor had a major disagreement over how much funding he believed the bank needed to operate.
Anna Breman, formerly deputy governor of Sweden’s central bank, was named the new Reserve Bank governor two weeks ago.
Breman will start her five-year term on December 1, taking over from acting governor Christian Hawkesby.
Meanwhile, it was revealed last month that Orr would take up a new role in the private sector, joining high-tech green innovator NZ Bio Forestry to help lead its international capital raise and global expansion.
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