Rumours former Western Bay of Plenty District Council CEO Glenn Snelgrove retired with a $400,000 golden handshake from the council are true, says Mayor Ross Paterson.

When Glenn retired on July 4 this year he received a before tax payment of $443,998 comprising of a retirement gratuity of $335,000 before tax, and $108,998 in accrued leave.

Former Western Bay of Plenty District council CEO Glenn Snelgrove.

After tax the first figure nets at about $297,000, and the leave payment is made up of 77 days' annual leave.

Western Bay of Plenty Mayor Ross Paterson says the retirement privilege comes from a time when that sort of payment was more common.

'It was a contractual situation and we have honoured it,” he says.

'It was something put together about 10 years ago. That was typical of the time, it's not typical now, things have changed for the better.”

Glenn had seven weeks' annual leave in his contract, and didn't always take it, says Ross.

'He was pretty conscientious and he had been with the council for quite a while.”

The gratuity is a year's pay at the level it was as retirement. Glenn's pay as CEO of the Western Bay of Plenty is set by independent remuneration specialists who advise the council on the appropriate level, using factors including the market and the size of the council.

Glenn lasted 25 years in his role as CEO. He had been at the Western Bay of Plenty District Council since the Mount Maunganui borough where he was the former town clerk. It dissolved in the 1989 local government reforms.

Glenn was unavailable to comment.