ANZ chair says more bonus cuts remain option after failures as big four bank reels from second strike

ANZ chairman Paul O’Sullivan says the bank’s board maintains the option to reduce bonuses further for executives amid growing discontent over accountability for past failings. Early polling indicated around 32 per cent of shareholders voted against the bank’s executive pay report at the annual general meeting on Thursday, underscoring the lingering dissatisfaction on steps taken. Proxy adviser Glass Lewis was among those recommending to vote down the report, citing “insufficient remuneration consequences”. ANZ’s second remuneration strike in two years would trigger a board-spill vote, though Mr O’Sullivan said proxy results indicate that shareholders will reject such a move. The early vote tallies also show 95 per cent support for Mr O’Sullivan’s re-election for another term. The pay vote highlights how some ANZ investors want more action from the lender to address a series of incidents that triggered fines and additional capital requirements. Chief executive Nuno Matos, in his first seven months in the role, has overhauled key management and introduced several measures aimed at strengthening risk and compliance. Current and former senior executives, including ex-CEO Shayne Elliott, were docked more than $30 million in compensation over a years-long run of problems. Mr Matos last month apologised in Parliament, saying cultural change and governance improvements will take time. The board’s response this year “has been appropriate and proportionate given the challenges faced”, Mr O’Sullivan said. “I would also point out that outcomes regarding unvested equity for some of our former executives have been, and will continue to be, made as those decisions fall due,” he said. “I want to be really clear the board can — and will — make future adjustments where appropriate.” Fielding questions on Thursday in Sydney from disgruntled shareholders, Mr O’Sullivan said the board had driven change and acted with “strong diligence”, being “proactive throughout”. MST Financial analyst Brian Johnson said investors are concerned that ANZ’s board has faced no financial consequences despite being ultimately responsible for management performance. “The quantum of remuneration cuts to the executive committee clearly shows ANZ management were deemed to have failed and by implication, we think that means the ANZ board failed as well”, he wrote in a report last month. Mr O’Sullivan, who has been in the role since 2020, has indicated he would stand one final term as chair. Glass Lewis said his re-election would provide stability and support an orderly handover to his successor. The Australian Shareholders’ Association, which represents millions of retail investors, has criticised ANZ’s board for what it describes as skill gaps that need addressing, and has argued that O’Sullivan should not be re-elected. Bloomberg