The director of the Chelsea Housing Authority has stepped down after coming under fire from the governor for his $360,000 annual salary.

Michael McLaughlin said he stepped down on Wednesday because without the governor’s support, his effectiveness would be "seriously compromised." He also defended his pay, saying he "more than earned" it.

Gov. Deval Patrick called McLaughlin’s salary "outrageous," especially at a time when public housing is being flat-funded during a down economy.

By comparison, the governor made around $143,000 in 2010, the Boston Herald reported at the time.

The Boston Globe reports that Patrick also called on the five-member board that approved McLaughlin’s salary to step down.

The governor also temporarily froze state funding to the agency because McLaughlin allegedly deliberately underreported his pay to the state.

The attorney’s general’s office is investigating whether McLaughlin broke any laws. (AP)