Finance minister and prime minister both weigh in on the payout
Former Reserve Bank of New Zealand (RBNZ) governor Adrian Orr will receive a $416,120 “restraint of trade” payment this month following his abrupt resignation earlier this year, according to the central bank’s 2025 Annual Report released today.
The report shows the payment lifts Orr’s total remuneration to $1.18 million for the year to June 30, including salary, KiwiSaver contributions, and other benefits. “As at 30 June 2025, the bank has provided for a restraint of trade payment to the Governor,” the report said. “The payment is due in October 2025, conditional on the terms being met.”
Orr resigned as governor in March after a disagreement with the RBNZ board and finance minister Nicola Willis over the bank’s funding. His resignation prompted a period of instability within the institution, culminating in the resignation of board chair Neil Quigley on Aug. 30, The Post reported.
A Reserve Bank spokesperson confirmed to 1News that the payment had already been made, explaining it reflected Orr’s contractual obligations. “Adrian’s terms and conditions of appointment as governor, agreed at the time of his appointment, included a restraint of trade period for six months, offset against any income he earns,” the spokesperson said. “This is to protect confidential information he was privy to as governor.”
The bank had earlier disclosed the existence of the restraint of trade clause when it released information under the Official Information Act in June but did not previously reveal the payment’s value.
Willis told 1News today that questions about the details of the exit agreement “should be addressed to the Reserve Bank and Mr Orr.” Prime Minister Christopher Luxon echoed that view, saying, “That’s an employment matter for the bank to talk through… the employment contract and that is an issue that ultimately the board and the bank is responsible for.”
The annual report also showed staff expenses rose sharply to $117 million in the year to June 30, up from $94 million a year earlier and $54 million in 2021.
NewstalkZB reported that Swedish economist Dr Anna Breman, formerly first deputy governor of Sweden’s central bank, was appointed last month as Orr’s successor. She will begin a five-year term on Dec. 1, succeeding acting governor Christian Hawkesby, whose tenure will end in November.
Hawkesby, who wrote the “Governor’s Statement” in the annual report, thanked Orr and Quigley for their contributions and said he looked forward to supporting a smooth transition to the new leadership.
