Despite leaving her high profile position, which she has held since 2013, Gracie is staying with the BBC - to return to her former role in the BBC News Channel newsroom.
THE risks that Carrie Gracie took when she became the BBC's China editor should not be under-estimated - she was working 5,000 miles away from her teenage children in "a heavily censored one-party state" where she faced "surveillance, police harassment and official intimidation" as the fluent Mandarin speaker, with 30 years of journalistic experience, faced the most challenging job of her career.
United Kingdom correspondent Rod Liddle told Tim Dower the BBC's dug a deeper hole.by banning their employees from talking about the issue on air, if they've already publicly supported Ms Gracie.
BBC media editor Amol Rajan said the resignation was a "big, big headache" for the organisation.
"I am not asking for more money".
The pay row began in the middle of 2017 when the BBC published a list of its top-earning stars, which revealed that only a third were women and the top seven were all men. She said she was not seeking more money for herself, but only demanding that the BBC observe British law requiring equal pay for equal work.
Gracie accused the BBC of a "divide-and-rule botch solution" by offering pay rises that do not guarantee equality and "locking down women in protracted complaints process". A BBC spokeswoman said "fairness in pay" at the corporation "is vital".
Gracie's suggestion that the BBC sets up an independent arbitration to settle individual cases is fascinating but also sensible.
"Alongside that, we have already conducted an independent judge-led audit of pay for rank and file staff which showed "no systemic discrimination against women". It was found that on an average, men are being paid 9.3% more than women at the BBC. A significant number of organisations have now published their gender pay figures showing that we are performing considerably better than many and are well below the national average.
In July last year, the BBC was forced to reveal the salaries of all employees earning more than £150,000 a year.
After tweeting "wish me luck" earlier on Monday, Gracie was back on air presenting BBC Radio 4's Today program alongside John Humphrys, the BBC's highest-paid news presenter with a salary of between STG600,000 and STG649,999 (NZ$1.1m to NZ$1.22m).