ANZ’s outgoing CEO to forfeit 2024 long-term variable remuneration
THE CEO of Australian No. 4 bank ANZ Shayne Elliott gave up a long-term performance bonus worth A$3.2 million (S$2.7 million) due to shareholder backlash related to bond trading irregularities, which have sparked regulator investigations, the company said on Thursday.
ANZ is currently being probed following media reports that the bank’s bond trading department was suspected of overstating its role in a 2023 government bond issuance that allegedly cost Australian taxpayers.
Separately, 38 per cent of shareholders voted against the company’s executive remuneration report, far higher than the 25 per cent required to defeat the resolution — a strong move that indicates the bank and its board will likely face a first pay strike in six years.
The vote has no immediate consequence, but if a company’s remuneration report gets a “no” vote two years, running shareholders may call another vote on whether to remove the entire board.
Remuneration reports need 75 per cent backing to pass. ANZ’s rival Westpac suffered two strikes in 2019, but minutely avoided a spill.
ANZ Chairman Paul O’Sullivan said: “We received majority support from shareholders to grant our CEO his long-term variable remuneration, however a substantial proportion of shareholders voted against the resolution.”
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The resolution proposing to provide Elliott with restricted and performance rights was withdrawn for shareholder voting at the annual general meeting, ANZ said, alongside providing advance voting details.
Elliott is being replaced by former HSBC executive Nuno Matos in a bid to revive the firm’s battered reputation as it grapples with the fallout from a bond trading scandal that triggered regulatory investigations.
The meeting comes amid calls by two influential proxy firms and a body representing local superannuation funds.
“We remain unconvinced that the remuneration consequences applied to executives in 2024 have been sufficiently punitive given the scale of the issues the company has faced,” proxy firm CGI Glass Lewis said. REUTERS
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