Late Friday evening, CPA Australia's president Jim Dickson announced that the board terminated Mr Malley's contract, and that he would finish his role effective immediately.
"The board decided to terminate Alex's contract in order to allow CPA Australia, CPA Australia staff and Alex to move forward," Mr Dickson said.
Mr Dickson said the board intends to conduct a "thorough executive search process," and that current chief operating officer (COO) Adam Awty would take the reins as chief executive in the interim. Mr Awty's remuneration will remain as per his current role, which was reported as $949,395 for 2016.
In the wake of Mr Malley's departure, the member rebellion principally leading the charge against CPA Australia has called on fellow members to continue contributions to a "fighting fund," which NSW-based accountant Brett Stevenson said currently stands at $12,415.
The fund has been established by Mr Stevenson to - amongst several items - prompt ASIC involvement, pursue regulatory and government assistance, seek mediatorial resolution which will involve legal assistance.
"With many of the past and current decisions at CPA Australia needing a legal overview, I suggest we continue to pressure them to ensure that action ensues," Mr Stevenson said in a communication to members over the weekend.
Mr Stevenson also hit out at Mr Malley's $4.9 million payout on behalf of the member lobby.
"The people on the board who oversaw and recommended and presumably locked us in to this outrageous contract need in some way to be able to give account to the membership for that," Mr Stevenson said.