Outgoing ANZ chief executive Shayne Elliott will forego $3.2 million in bonuses following a major investor backlash against the bank at its annual general meeting on Thursday.
Nearly 40 per cent of the company’s investors voted against the bank’s executive pay scheme, giving Australia’s fourth-biggest lender its first AGM strike in six years as shareholders protested perceived mismanagement and reputational issues.
ANZ chief executive Shayne Elliott will go without his bonuses.Credit: Arsineh Houspian
ANZ chairman Paul O’Sullivan acknowledged the investor revolt, saying the company’s board was “deeply respectful” of the feedback it had received, and admitting the bank’s year had been difficult.
“As many shareholders are aware, our financial performance was overshadowed by issues related to our management of non-financial risks,” O’Sullivan said. “This made it difficult to judge our performance.”
In August, banking regulator APRA raised concerns over the bank’s culture, demanding it hold an extra $250 million in capital following ANZ’s bond trading scandal in which the bank allegedly overstated the value of government bonds it traded by more than $50 billion.
ANZ has also been under shareholder pressure over the delayed rollout of its new Plus banking platform, which critics believe is lagging its rivals’ offerings.
‘In recognition of shareholders views, and to limit the impact on the bank, Shayne has decided to forfeit this year’s long-term variable remuneration.’
ANZ chairman Paul O’Sullivan
Acknowledging this criticism, O’Sullivan said Elliott would forego $3.2 million in bonuses that shareholders had voted strongly against at the meeting. Just shy of 50 per cent of investors rejected a resolution about his long-term pay package.
“In recognition of shareholders views, and to limit the impact on the bank, Shayne has decided to forfeit this year’s long-term variable remuneration,” O’Sullivan said.
