The details of former QBE Group CEO Frank O’Halloran’s retirement package have been revealed, with estimates valuing it at up to $16 million.

Mr O’Halloran ended his 14 years as Group CEO on Friday, handing over to John Neal, but he will remain employed by QBE until August 28 to serve out his six months’ notice.

He will then receive $4.5 million in accrued holiday and long-service pay, plus pro-rata portions of his 2012 short-term incentive cash bonus and equity award.

He will also get about $5.3 million in QBE shares through the early release of previous years’ conditional share rights and the vesting of unexercised options over QBE shares.

Next March Mr O’Halloran will be paid his retirement allowance of $2.34 million, the equivalent of one year’s fixed salary, subject to shareholder approval at next year’s AGM.

Between April 2016 and April 2018 additional share rights will vest and the remainder of his five-year long-term incentive awards, granted from 2010 to this year, will pay out. This could net Mr O’Halloran about $4 million, subject to QBE achieving future performance targets and depending on its share price at the time.

After August 28, Mr O’Halloran will be bound by a three-year non-compete clause, expiring on September 1 2015. He will continue to consult for QBE – for an unspecified fee – “on various subsidiary company matters” until the end of this year.

QBE Chairman Belinda Hutchinson says the package reflects contractual and statutory entitlements accrued during Mr O’Halloran’s 36 years at QBE, including 14 years as Group CEO.

In a further announcement to the securities exchange, QBE has revealed Len Bleasel will retire from the QBE board on September 30, after more than 11 years as a director.

John Graf, the US-based Chairman, President and CEO of life insurer Forethought Financial Group, joins the board today as his replacement.

Ms Hutchinson says Mr Graf, who has formerly worked at Axa and AIG, “will add a valuable contribution and perspective to the QBE board”, while the appointment of a US-based director recognises the “importance and size” of QBE’s North American operations.