Auckland Regional Council chief executive Jo Brosnahan is quitting her $350,000 a year job after a dispute saw her awarded a golden handshake.
Ms Brosnahan is understood to have sought legal advice after she took exception to remarks by chairwoman Gwen Bull.
Mrs Bull is believed to have told thecouncil's top manager that under new transport funding structures the chief executive's job had changed and should be readvertised.
Ms Brosnahan consulted a top Auckland employment lawyer, who told the ARC that Mrs Bull's actions were a serious blunder and his client could sue for constructive dismissal. A figure of $1 million was reportedly mentioned.
The lawyer advised the council behind closed doors to quietly reach an agreement with Ms Brosnahan who, sources say, had been unhappy in her role since Mrs Bull took over from former ARC chair Phil Warren. Mr Warren died in office in 2002.
The Herald understands councillors agreed on a $20,000 golden handshake for the chief executive and an announcement on Thursday she was resigning and would leave in December, even though her contract doesn't expire for another 18 months.
Mrs Bull's gaff was a low point in a relationship between two women regarded in Auckland political circles as like chalk and cheese.
Ms Brosnahan is interested in theories on leadership and team-building.
Mrs Bull, a retired teacher, is known for her pragmatism.
Ms Brosnahan is also understood to be expecting a swing to the centre-right on the council after the election, another reason she had decided to go. Councillors Michael Barnett and Craig Little are understood not to be unhappy at her departure.
The two could be joined after the election by Auckland City Council deputy mayor and political ally David Hay, standing for the ARC this time around on the centre-right Citizens and Ratepayers Now ticket. Mrs Bull is expected to face a strong challenge for her job by either Mr Hay or Mr Little if both are re-elected.
Supporters of Ms Brosnahan said she was a key player in wresting $1.6 billion-worth of assets from the Government back into ultimate ARC control with a further $1 billion-plus from petrol taxes for Auckland's transport problems.
