Australia Post chief executive Christina Holgate has resigned with immediate effect, stating she won’t be seeking any financial compensation.

The decision comes after Holgate’s controversial decision to hand out almost $20,000 worth of watches to senior management at Australia Post came under close media and government scrutiny.

Holgate said she was proud of the three years she spent at the business, and that Australia Post needs to be focused on supporting its customers in the lead up to Christmas – not controversy.

“I firmly believe the ‘ship’ needs a strong captain at the helm to help navigate through this time,” Holgate said in her resignation letter, as seen by the ABC.

“The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my own personal wellbeing.”

Holgate also acknowledged that the situation didn’t pass the ‘pub test’ for many, but the decision to grant four managers Cartier watches was supported by the chair.

More to come.