The Herald asked Dawson why it was deemed necessary to incur the additional expenses, amounting to almost $200,000, to secure Main’s early departure by just a few months, especially at a time when the organisation was trying to control costs and defend those measures to New Zealanders.
ACC spokeswoman Megan Heffield replied: “ACC has nothing additional to add to the information provided in the OIA response.”
ACC board chairwoman Jan Dawson refused to explain why the public insurer swallowed costs of almost $200,000 to secure chief executive Megan Main’s early departure.
On July 28, Main told the Herald in an interview that her early departure was by longstanding agreement and had been announced in December last year.
She said the earlier date worked for her and her family and that, since a turnaround plan for the agency was in place, it was the right time to hand over the reins.
Main did not respond to the Herald’s questions this week, including a request to explain the payment made in lieu of notice.
The interview
In the July interview, the Herald asked Main: “Do you get compensated for leaving early, which is to say paid for longer than you’re working, outside of holiday and the usual?”
Main replied: “No. No. I announced back in December that I was finishing up early, so that’s, that’s, that’s the story.”
The Herald again asked: “So there’s not an exit payment of any kind associated with that departure?” Main replied: “No. No.”
No announcement was made either by Main or the ACC last December indicating that Main would leave before her contract ended in November.
ACC issued a press release in mid-December; it announced Main’s decision not to seek reappointment when her five-year term ended in late 2026.
ACC Minister Scott Simpson said the hefty departure payment made to CEO Megan Main was a matter for the agency’s board to explain. Photo / NZME
The cost of an interim chief executive
Main’s salary in the fiscal year 2024-25, the last year for which it has been disclosed, was $714,000.
ACC deputy chief executive Stewart McRobie became acting chief executive when Main left. He has received a “higher duties allowance” in this role.
ACC did not disclose the value of that allowance, but said McRobie’s salary, including the allowance, was an annualised $570,138.
New hire Sid Miller took up the top job at the agency on Monday.
A turnaround plan
At the end of last year, ACC’s net deficit was $1.5 billion, and its outstanding claims liability was a whopping $63.6b, which eclipsed the $51.1b investment scheme intended to meet the cost.
By many measures, the agency has been in decline for more than a decade.
In the past year, Main undertook a Government-mandated effort to curb costs and improve results for patients.
Some changes are beginning to show improvements to the agency’s books, including a reversal of the growth in the ACC’s long-term claims pool, representing the cohort of injured workers who stay on income replacement for more than a year.
However, patient reviews seeking to overturn ACC decisions to decline coverage have also jumped.
ACC Minister Scott Simpson said the decisions relating to Main’s departure “are for the ACC board to answer”.
ACC is a Crown agency; it has ministerial oversight but operates at arm’s length from the Government.
Simpson said his priority for ACC was to turn around its performance, and return injured patients to work and independence more quickly through a renewed focus on rehabilitation.
Labour’s ACC spokeswoman, Priyanca Radhakrishnan, echoed Simpson, saying Crown entities operated independently from ministers and “any operational matters are a matter for them”.
Main announced via LinkedIn last month that she would start a new role as chief executive of the State Insurance Regulatory Authority of New South Wales in October.
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