JOHN Mackay has resigned as chair of ACTEW today after the water utility under-reported the salary of its managing director, Mark Sullivan, by $234,000.

Mr Mackay announced he would step down from June 30 in a special general meeting this afternoon between the utility company and its two ACT Government shareholders, Chief Minister Katy Gallagher and Treasurer Andrew Barr.

Ms Gallagher said Mr Mackay revealed his plans to step down late last week and she “didn’t try to persuade” him to stay, saying she believed the utility would benefit from fresh eyes.

“Mr Mackay had been there for a long time, he’s been a significant contributor as well but…I do think it is time for fresh eyes,” she said.

“We have made it clear to the board we didn’t think [the under-reporting] was acceptable.”

Mr Mackay has been Chairman of ACTEW since July 2008. His resignation is believed to include his role as Chairman of ActewAGL.

Ms Gallagher said the ACTEW board are “renegotiating” Mr Sullivan’s contract but she is not aware of any changes made yet. She believes ACTEW plan to put an end to bonuses for executives at the corporation, making it subject to a full “structural review”.