Schubert's resignation as CEO will take effect on Nov. 15, but he will continue to be paid his full salary as a consultant until next June.
The review of the crown corporation, published Thursday, found that ICBC has seen a 32 per cent increase in management positions since 2007.
According to the review, in the past five years ICBC has paid $365,000 in signing bonuses and $25 million in severance pay.
The total compensation cost for the management and confidential employees increased 50 per cent during the last five years, said the report.
Finance Minister Kevin Falcon said there has been a major disconnect between what makes sense economically and ICBC's staff increases.
The provincial government is now ordering ICBC to cut costs by reducing between 165-195 positions over the next two years.
The review also recommends increasing oversight, reducing legal and procurement costs and improving management of bodily claims injuries.
The provincial government said it expects ICBC to bring overall operating costs more in line with 2008 budget levels, and reduce costs by a total of $50 million by the end of 2013.
The review of the corporation's financial practices follows a CBC News report of December 2011 that revealed a $188,681 expense account payout to a former executive.
Art Kirkner — hired in 2008 as an ICBC vice-president from the U.S. to help cut costs in ICBC's claim centre system — was found to have filed the expenses in 2010 on top of his salary and bonuses of more than $315,000.
In February, ICBC announced managers would no longer receive bonuses based on individual performance but instead would be rewarded for the corporation's overall level of profit.