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When Cary Town Manager Sean Stegall resigned as the top town official amidt scrutiny of town spending and workplace culture he was entitled to a six-figure severance.
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Town leaders said it was contractual, despite Stegall’s facing allegations of “over-the-top” spending and creating a toxic work environment.
He never received the money.
The town was scheduled to pay Stegall severance of $194,832, equal to about six months of his salary. However, according to the North Carolina State Auditor’s Office, Stegall refused to comply with conditions of his severance and didn’t receive the payout.
“Two conditions of the severance agreement were that Mr. Stegall return property belonging to the Town and that, for public records purposes, he provide the Town access to his text messages associated with Town business,” according to the audit. “According to Town officials, Mr. Stegall refused to comply with these conditions and therefore did not receive this severance.”
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That town property included a town cell phone, town credit cards and keys, The News & Observer previously reported.
The details of the severance were released as part of a 2,600-page report from the State Auditor’s Office on Thursday.
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Cary Town Manager Termination Agreement by Anna Johnson
Cary Town Manager Employment Contract by Anna Johnson
This story was originally published July 16, 2026 at 1:08 PM.