Outgoing ANZ CEO Shayne Elliott will forgo $3.2 million in bonuses due to significant investor disapproval of the bank's executive pay scheme. This marks ANZ's first AGM strike in six years.
Outgoing ANZ chief executive Shayne Elliott will forgo $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 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 byANZ has also been under shareholder pressure over the delayed rollout of its new Plus banking platform, which critics believe is ‘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.’Acknowledging this criticism, O’Sullivan said Elliott would forgo $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.A vote of more than 25 per cent against a company’s remuneration report is known as a “first strike”, with a subsequent strike giving investors a chance to vote to spill the board and re-elect the company’s director
Business Banking Australia ANZ CEO Shayne Elliott Bonuses Investor Backlash AGM Strike Executive Pay Reputational Issues
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ANZ CEO Forfeits $3.2 Million Bonus After Shareholder BacklashOutgoing ANZ CEO Shayne Elliott will forego his $3.2 million bonus following a significant investor revolt at the bank's annual general meeting. Nearly 40% of shareholders voted against the executive pay scheme, marking the bank's first AGM strike in six years.
Read more »
ANZ CEO Forgoes $3.2 Million in Bonuses After Investor BacklashOutgoing ANZ chief executive Shayne Elliott will forego $3.2 million in bonuses following a major investor revolt against the bank's executive pay scheme at its annual general meeting. Nearly 40% of investors voted against the pay scheme, marking the bank's first AGM strike in six years. Shareholders expressed concerns about perceived mismanagement and reputational issues, such as the bank's bond trading scandal and the delayed rollout of its new Plus banking platform. Acknowledging the criticism, ANZ chairman Paul O'Sullivan stated that Elliott would forfeit his long-term variable remuneration to mitigate the impact on the bank.
Read more »
Why did ANZ look past its bench to pick a superstar CEOThe Big Four bank’s decision to fly in an overseas star banker is at the very least curious – and potentially risky.
Read more »
Why did ANZ look past its bench to pick a superstar CEOThe Big Four bank’s decision to fly in an overseas star banker is at the very least curious – and potentially risky.
Read more »
Why did ANZ look past its bench to pick a superstar CEOThe Big Four bank’s decision to fly in an overseas star banker is at the very least curious – and potentially risky.
Read more »
Former CEO Sued for $4.5 Million Over Bribery ScandalFive years after John Joseph Carter, former CEO of ORIX, and George Georgiou avoided jail time due to a technicality in their criminal trial for offering bribes, Carter is now facing a stunning ruling that he was aware of the payment of bribes and illegal inducements. He had previously sued insurance company Chubb for $4.5 million in legal costs, but now must face the consequences of his actions.
Read more »