The chief executive officer of ICBC has resigned after a scathing provincial government review ordered the public insurance company to make significant budget cuts Thursday.

The Crown corporation said CEO Jon Schubert will leave his position on Nov. 15, but will continue as a consultant at full salary until June. Schubert made $486,541 in total compensation in 2011 and $522,178 the year before.

B.C. Finance Minister Kevin Falcon said the report showed ICBC’s management salaries were way out of line with other Crown corporations, especially during the global recession when government was trying to cut costs.

“Clearly that is not taking into account the realities of what’s going on in the world all around us and shows a real disconnect, in my view, of what British Columbians and those around the world are really feeling in the economy and what was taking place at ICBC,” Falcon told reporters.

The report makes 24 recommendations to reduce costs at ICBC by $50 million by the end of 2013, including the elimination of 165 to 195 employees, most of whom have management positions.

ICBC anticipates there will be a total of 364 staff reductions by 2017.

According to the review, the number of senior management positions have ballooned by 40 per cent in the past five years and managerial positions increased by 28 per cent. This resulted in management salaries increasing by more than $52 million.

Over the same period, the number of employees earning between $75,000 and $200,000 increased by 52 per cent and those earning more than $200,000 increased by 315 per cent, according to the audit.

ICBC is one of Canada's largest property and casualty insurers, with more than 5,000 employees and premiums revenue of $3.7 billion, plus $440 million in investment income.

Falcon told reporters the budget cuts do not mean insurance rates will go down for ICBC customers.