Buchan declined a £430,000 golden handshake and a £64,000 pension payment after cutting his basic salary by 20 per cent in February.
His austerity comes as Southern Cross prepares to cut 6,000 jobs and transfer its 752 homes to new operators after becoming unable to manage the costs of renting the sites.
Christopher Fisher, Southern Cross’ chairman, said Buchan’s decision to leave without the severance pay was “entirely consistent with the tireless and selfless approach he has adopted while leading the management team at Southern Cross”.
Buchan will step down “once the process of transitioning homes is well advanced”, Southern Cross said.
That is likely to be this autumn, as City A.M. understands it has found new operators for more than 90 per cent of its homes and expects the rest to be settled shortly.
NHP, which owns almost a third of the homes, has said it will operate its estate through a new joint venture with Court Cavendish.