Insurance Australia Group (IAG) has reduced its board by two, scrapped retirement benefits for new directors and frozen the retirement benefits being paid to existing board members.

Its decision follows the NSW Supreme Court having cleared former Chairman Nicholas Whitlam of having committed any breaches of duty during his term of office, and IAG’s decision to pay him retirement benefits of $637,000 including company-funded superannuation entitlements.  

IAG Chairman James Strong said that Board members Maree Callaghan and Mary Easson had retired last week after having “advised they did not intend to stand for re-election in November”. They will not be replaced.

IAG has adopted a new schedule of directors’ fees which will see Mr Strong’s base fee increase from $220,000 to $300,000 including committee fees, and directors’ base fees increase from $70,000 to $100,000.