Australia Post will pay its former CEO Christine Holgate $1 million following her acrimonious departure from the government business enterprise last year.

Ms Holgate left Australia Post last October after details emerged about the Cartier watches scandal in which four senior Australia Post executives were gifted $5,000 luxury watches.

In a statement on Wednesday Australia Post said it had reached a settlement with Ms Holgate in which the former CEO would receive $1 million as a termination payment, as well as $100,000 in legal costs, without any admission of liability on the part of Australia Post.

Under the terms of the settlement, Ms Holgate will drop legal action against her former employer.

Australia Post stopped short of offering an apology but said it regretted “the difficult circumstances surrounding Ms Holgate’s departure from her role as CEO” and acknowledged it had lost an effective CEO following the events of October 22, 2020.

“Australia Post wishes Ms Holgate the best in her future endeavours,” it said in a statement.  

IMs Holgate had previously claimed she was unlawfully stood down, humiliated in parliament and the subject of a gendered attack in the media.

She has consistently defended her decision to reward the executives for their efforts on a key Australian Post initiative with the watches.

Australia Post Chair Lucio Di Bartolomeo had denied Ms Holgate had been unlawfully sacked, saying she had agreed to stand down before tendering her resignation.