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Tuesday 13

November, 2018 7:18 AM



ANZ CEO takes near $1 million pay cut

ANZ CEO takes near $1 million pay cut

ANZ chief executive Shayne Elliott's performance-related remuneration was cut 23 per cent to $3.15 million in 2018.

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By AAP 05.11.2018 03:51 PM

ANZ chief executive Shayne Elliott has taken a near $1 million pay cut after a year of declining profits, a falling share price and industry-wide reputational damage.

Mr Elliott's performance-related remuneration was cut 23 per cent to $3.15 million, reducing his overall package to $5.25 million from $6.2 million in 2017.

Performance rights awarded in November 2014, when Mr Elliott was chief financial officer, lapsed because total shareholder return performance hurdles were not met.

ANZ's full-year cash profit for the 12 months to September 30 slipped 16 per cent to $5.8 billion in 2018, while its share price slipped about five per cent over the year.

Mr Elliott's executive team also took a haircut on their remuneration, with only Alexis George pocketing more than the previous year following her appointment in May to the role of deputy chief executive.

ANZ said statutory remuneration for the chief executive and other executive roles was down almost 40 per cent in the past three years.

But its annual report, released on Friday, said the Kenneth Hayne-led financial services royal commission had raised important issues regarding incentive-linked pay in the banking industry.

"Commissioner Hayne has rightly raised questions about how the industry rewards its people and we await his final recommendations," the report said.

"Remuneration at ANZ has evolved significantly over recent years in accordance with our reward principles ... (but) we also know we have more to do."

That will include a 20 per cent reduction in directors' fees for FY19.

Chairman David Gonski will be paid $660,000 instead of $825,000, while the other directors will pocket $192,000 instead of $240,000.

"While the non-executive directors do not receive variable remuneration, the board accepts that it is appropriate that they too share some accountability for these failures," the report said.

Shareholders will vote on the remuneration report at the bank's annual general meeting in Perth on December 19.

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