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Quitting RSA boss to receive €979,087 in lieu of 12-months notice

The group has also announced it will be injecting €160 million into its Irish reserves.

Image: Philip Toscano/PA Wire/Press Association Images

RSA HAVE ANNOUNCED that CEO Simon Lee is stepping down with immediate effect. It follows the resignation last month of the Philip Smith, chief executive of the company’s Irish operation.

Smith was one of three top executives who had initially been suspended after alleged irregularities were uncovered. Auditors PwC are currently carrying out an investigation of the group’s claims and finance operations — the report is expected to be handed in next month.

RSA also confirmed today its Irish reserves would need a boost of €154 million, in addition to the €83 million previously announced on 8 November, after the problems were uncovered after a routine audit.

The company said it intended to inject €160 million “to ensure that the solvency ratio of RSA Insurance Ireland is maintained above 200 per cent”.

According to a the company

In line with his contractual agreement and the Remuneration Committee’s policy on termination of employment, Mr Lee is entitled to receive £824,000 [€979,087] payment in lieu of twelve months’ notice, paid monthly and set off against any payments he receives for any future employment or appointment he accepts in the next twelve months.

He will not receive any benefits (or compensation in lieu) in respect of this period. He will not be entitled to any bonus payments in respect of the 2013 or 2014 performance periods.

Martin Scicluna, the company’s non-executive chairman is to take over as executive chairman in the short term and will oversee the recruitment process for Lee’s replacement.

Read: RSA Insurance executives suspended as firm announces €84m profit shortfall

Read: Newbridge Credit Union taken over by Permanent TSB

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