Her decision comes ahead of the expected judgment in the Sandie Peggie employment tribunal, though Ms Potter insisted the two were not connected – and that she had carefully timed when she would quit.
With six months notice required, announcing her decision meant she would leave in the summer, rather than the winter.
She addressed members of the health board on Tuesday where it was confirmed that the search for her replacement has already started.
Sandie Peggie has taken her employer to tribunal (Image: (Andrew Milligan/PA))
Ms Potter said the announcement made earlier this month came after “a lot of careful consideration” with her family.
“This is my choice – I am aware of a lot of speculation surrounding it,” she said. “It is my choice. Given the fact I need to give at least six months’ notice, the timing was always going to be difficult.
“Retiring in the summer feels a lot nicer than retiring in the winter.
“I started my NHS career on this site (at the Victoria Hospital) in the very building right next to me as a graduate management trainee. Nearly 35 years of public service and six and a half years as chief executive, the time feels right.”
Confirming she will be working until next summer, she said it was business as usual until then.
“We are about to go into December. My priority is to maintain organisational stability ahead of the operational pressures of winter,” she added.
“My commitment remains focused and strong. I want to maintain stability and confidence. I will continue to celebrate the achievements of our incredible staff.
“I am quite overwhelmed by the kind messages from staff and colleagues in the organisation and also our partners from a range of sectors and am now focusing on the job in hand.”
NHS Fife chairperson Pat Kilpatrick confirmed the process had already started to recruit a new chief executive.
She added: “Carol has announced her intention to take early retirement following a long and distinguished career spanning more than 30 years.
“She took up the interim post (of chief executive) in January 2020 and was formally appointed in September 2020.
“She will step down in summer 2026.”
Dr Beth Upton arrives at the Tribunal surrounded by supporters. (Image: PA)
Before taking up the post, Ms Potter held senior financial leadership posts in NHS Fife and across NHS Forth Valley, NHS Lanarkshire and NHS Lothian.
Over her tenure as chief executive, she steered NHS Fife through the Covid-19 pandemic however attracted criticism in recent months over the board’s handling of the Sandie Peggie tribunal.
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Ms Peggie was suspended after she complained about having to share a changing room with transgender medic Dr Beth Upton at Victoria Hospital, Kirkcaldy, on Christmas Eve 2023.
She was placed on special leave after Dr Upton made an allegation of bullying and harassment and cited concerns about “patient care”.
Ms Peggie has lodged a claim against NHS Fife and Dr Upton, citing the Equality Act 2010, including sexual harassment; harassment related to a protected belief; indirect discrimination; and victimisation.
A decision on the case is expected before the end of the year.