Former general manager Craig Bennett will receive 38 weeks pay after Glen Innes Severn Council terminated his contract this month.
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The decision was made official this week when the council held an extraordinary meeting on Tuesday.
While the council had released a statement on July 1 following a meeting that day, saying Mr Bennett would no longer be the general manager, this week's meeting was needed as the first one had not met all the requirements of the Local Government Act.
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Mayor Rob Banham confirmed Tuesday's meeting, which was conducted mostly behind closed doors as a confidential meeting, rubber stamped the termination of Mr Bennett's contract and the appointment of interim acting general manager Dennis McIntyre.
Mr Bennett had been at the helm of the council since his appointment in October 2019. Before moving to Glen Innes, he had notched up 25 years in local government across Tasmania, Western Australia, Victoria and NSW.
Since 2003 he had worked in executive positions in NSW councils, including Woollahra, Muswellbrook, Cessnock, Wyong, Griffith and Leeton.
Mr McIntyre has started in the interim GM's role.
Both Mr McIntyre, and his brother Jamie, were banned by the federal court, following an investigation by the Australian Securities & Investments Commission (ASIC).
The ban does not prevent Mr McIntyre from taking on the interim role as general manager, the Glen Innes Examiner was informed when it contacted the independent regulator this week.
But an ASIC spokeswoman told the Examiner that Mr McIntyre would not be permitted to be a director of any business or company separately run by the council as a corporate entity, or be involved in the management of those entities.