He said it "reflected the payment made to Mr Newman around the end of his contract."
Andrew Newman took up the role as chief executive of the Hawke's Bay Regional Council in May 2007 and resigned in February.
Between October 16 and March 31 of this year, he was paid a total of $543,241 - which included his salary, and $20,853 of benefits, along with his severance payment of $306,200.
Mr Newman's remuneration for the 2016/2017 financial year was $543,241.
As head of the HBRIC, Mr Newman was also paid a total of $103,559 from July 1 and October 15 last year.
After his resignation, Greg Woodham, who was in the chief executive's role prior to the appointment of Mr Palmer, received a salary of $45,792, and total remuneration of $51,578.
Between July 1 and October 15 last year, acting chief executive Liz Lambert was paid a total of $72,327.
Mr Palmer was paid $11,994 for 12 days of work between June 19 and June 30.
For the year ending June 30, 2016, Newman was paid $382,968, as head of the HBRIC and
Lambert was paid $224,861 as acting chief executive for the year ended June 30, 2016.
Regional council chairman Rex Graham said he "wouldn't change" anything, as it was spread across four different people.
"It is the way it is. That was the cost incurred," Mr Graham said.