Kirk got $5m after 'duties stripped'

After a year of conjecture surrounding the abrupt resignation of David Kirk as Fairfax Media chief executive last December, it has finally been revealed he got a A$4.1 million (NZ$5.1m) golden parachute because he had his duties running the company stripped by the board.

This meant the former All Black captain was able to use a "fundamental change" clause in his 2005 contract to claim full termination benefits upon his early departure from the company even though it reported a loss of A$308m in the 2008-09 financial year.

Australian Shareholders' Association representative Stephen Matthews told the Fairfax annual meeting in Sydney yesterday: "Mr Kirk was able to argue he resigned with a gun at his head as he could no longer be an effective CEO."

Newly appointed chairman Roger Corbett confirmed as much and conceded Mr Kirk had not resigned but had "separated" from Fairfax on a basis that was between himself and the company.

Mr Kirk's termination payment was one of several Pandora's boxes opened at the 2 1/2-hour meeting of 350 shareholders.

The board was repeatedly lambasted by shareholders for past performance and for the way it handled the recent, very public stoush between now ousted chairman Ron Walker (who was not at the meeting) and Nicholas and J B Fairfax that led to Mr Corbett taking the chair.

Fairfax owns a number of publications in New Zealand and Australia including The Dominion Post.

- © Fairfax NZ News