NAB has removed Ken Henry from the decision-making process in the search for a new chief executive.

The bank said on Wednesday that Dr Henry, who quit with CEO Andrew Thorburn after both were named and shamed in Kenneth Hayne’s final royal commission report, would play no role in the search.

The bank has formed a CEO selection committee chaired by director Ann Sherry, with a second committee led by director David Armstrong to manage the search for Dr Henry’s replacement.

The final report – made public two weeks ago – expressed serious concerns about the pair’s leadership of the bank and failings that included charging fees for no service.

Mr Thorburn sacrificed about $20 million in bonuses by quitting, with the bank confirming he would forfeit all his unvested performance-related awards.


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Mr Thorburn will receive $1.04 million in lieu of 26 weeks’ notice when he steps down at the end of the month.

Phil Chronican takes over as interim chief executive on March 1 and will be paid $150,000 a month.